The cover page of the Africa Report 2022/23. /Knight Frank
By Claire Munde For Citizen Digital
A report by property consultancy, Knight Frank, titled, ‘The Africa Report’ which detailed real estate trends in 22 countries, said there has been a growth in businesses taking up industrial real estate – in the form of warehousing space – with the increase in online purchases.
The report stated that the growth of the industrial sector has also been fueled by “the increase in local storage and data center requirements as well as home markets looking to reduce their reliance on internationally manufactured goods.”
The report, however, said, “Traditional retail, especially convenience led schemes, has also seen a strong rebound in the last six to nine months off the back of easing restrictions and people’s eagerness to get back to life as normal.”
The firm stated that Kenya is the preferred entry point for international investors looking to put their money in real estate.
“Nairobi remains the strategic capital of East Africa and the first-place international investors list as a preferred entry point into Africa.”
The report also stated that the oversupply of office space developed in the lead up to the Covid-19 pandemic is starting to be absorbed by the market.
“We have seen some rental growth over the last quarter and our view is that we will see prime rents begin to climb again off the back of improving occupancy rates and renewed interest from global tenants looking to either set up or expand their operations in Nairobi,” it said.
Meanwhile, the report also states that Kenya’s young demographic has sustained growth in the affordable homes and co-living segments of the residential market.
“A young population, combined with a strong middle class is also helping the office and retail sectors to recover.”
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