Best Areas for Higher Gains in Office Space and Retail Investments in Nairobi
Nairobi, the city in the sun, is one of the highly ranked cities in Africa and the world. Early 2017, the Rough Guide, a British travel guide ranked the city as the third-best in the world and went on to described it as “Africa’s youngest, fast-growing metropolis…” This year, Knight Frank Horizons Report named Nairobi city the most innovative in Africa.
Other than that, Kenya’s capital city is one of the two African cities that has a UN office and hosts international conferences and seminars at the KICC and other prestigious hotels.
Unlike the residential real estate sector where investing in underprivileged areas is better than investing in posh areas, the office space and retail sectors of real estate demand a different approach.
In order to choose an area that will give you higher returns on investment, these are some of the things that you need to look out for.
- Investor-Friendly Environments
To make the most of your real estate business, you need to target high-end investors. The environment matters a lot to such investors and they will be willing to pay any reasonable amount in an environment that denotes their lifestyle.
No one will want to invest near polluted rivers, near cemeteries, places where there are open sewers or areas with poor drainage systems.
Such investors also prefer to have their businesses near where they live. For example, Gigiri and Two rivers mall are near Runda, a residential area associated with affluence.
- Metropolitan Areas
Metropolitan areas attract investors more than other areas. This can be attributed to the high population and good infrastructural developments in such areas.
Nairobi, Mombasa, Kisumu, Nakuru, Eldoret and Thika are some of the metropolitan areas. Such areas have so many activities going on and they are host to most government offices that offer services that may be hard to find in other areas.
- Areas with major Government Projects
Government projects contribute a lot to the development of the real estate business. The Konza city project is a great example. Right after it was announced, investors rushed to buy land and develop the place.
During the construction and after the completion of Thika Super Highway, the land around the place appreciated in value and malls sprouted.
Such projects give the towns near them an uplift and make them a great space for potential growth. The underdeveloped areas around Machakos and Kiambu counties which host the Konza city and Tatu city respectively will be developed as a result.
Best Places for Investments in Nairobi
In Nairobi, three main areas stand out when it comes to office space and retail investments. These are Upper hill, Westlands and Mombasa road. They have well-developed infrastructure, are activity-filled areas and are just a few meters from the CBD.
Upper hill has class A buildings that cater for the needs of new investors while giving Nairobi a daring new look. Mombasa road which is connected to Jomo Kenyatta International airport has class B buildings, while Westlands which is host to most of the offices has class B and a few class A buildings.
The Nairobi expressway which is set to be completed this year, will ease up traffic and further encourage more investments of this kind.
With the Covid-19 pandemic in place, the said areas still thrive business-wise and this proves that such areas are the best for office space and retail ventures.