Kenya’s property market is outpacing the world. Home prices in the country have risen faster than in the United States, Europe, or Asia, driven by a growing middle class and a surge in wealthy buyers.
A new report by HassConsult shows property prices in Kenya climbed 7.8 percent in the year to June 2025 — the sharpest rise among leading global markets. Since 2000, house prices in the country have soared by 425 percent, dwarfing gains in places such as the US, France, and Singapore.
“Demand here is real. People are paying cash for homes,” said Sakina Hassanali, co-chief executive of HassConsult. “That makes the market resilient. We don’t see the wave of mortgage defaults that has hurt other economies.”
Less than two percent of Kenyan homes are bought with mortgages, compared with up to 90 percent in many Western markets. This has helped shield the sector from the global slump caused by high interest rates and rising debt.
Rental yields in Kenya remain strong at 5.5 percent, well above the global average. When combined with rising property values, investors earned returns of 13.28 percent in the year to June. For those who bought into off-plan projects — paying in instalments for homes still under construction — the average return was even higher at 18 percent.
“With off-plan, buyers get discounts and flexible payments. That’s why the gains are so much bigger,” said Ian Mutinda, a development sales adviser at HassConsult.
The report compared Kenya with markets in South Africa, the US, Canada, the UK, France, Switzerland, Singapore, and Australia. While Kenya led with the steepest rise, Australia followed at 4.7 percent, and Singapore at 4.1 percent. France saw only a one percent increase, while Canada reported a decline.
Analysts say Kenya’s expanding economy and youthful population are fuelling demand. Meanwhile, in Western economies, ageing populations and shrinking household sizes are slowing housing markets.
Still, the market is not without challenges. The rental segment for detached houses has been hit by a drop in demand from international staff and aid agencies, following funding cuts. Yet many landlords are selling, pushing prices up and shifting the market towards local buyers.
The result, experts say, is a property sector that offers some of the best returns in the world — and one that shows no sign of slowing.
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