Over the past few years, Nairobi’s skyline has had a dramatic transformation. From tree-lined roads and two-storey maisonettes that graced our neighborhoods, they have given way to the Nairobi Expressway and high-rise residential apartments.
So, is our city skyline vanishing before our eyes, swallowed by glass towers and concrete high-rises? The bottom line is that the city we once knew is gone, and the one replacing it tells a different story.
Since Kenya’s independence in 1963, Nairobi’s population has exploded from a modest 360,000 to over 5.7 million, as reported by Macrotrends. This significant growth continues to push the city’s housing market to its limits.
The Kenya National Bureau of Statistics (KNBS) highlights this gap. They noted that a majority of homeowners chose to build in rural areas, whereas urban homeownership was 22.8%.
And while the government’s affordable housing initiative offers an alternative solution, it only contributes a fraction of the market demand, with bureaucracy and ownership costs locking out most Kenyans.
Under the laws of supply and demand, this has made home ownership in urban areas grow harder as many Kenyans opt to build in rural regions instead.
In Nairobi, the pressure of housing continues to force the city skyward, making high-rise apartments a defining solution. But the question remains whether the skyward direction is gambling with Nairobi’s identity.
How Growth and Urbanization are Reshaping Nairobi’s Housing Landscape
Globally, the World Bank reports that the urban population accounts for 58% of the population. In retrospect, the last 2 decades have experienced a steady decline in urban population growth, currently at 1.7%. However, Kenya enjoys a steady urban population growth rate of 3.7% as of 2024.
The 2023/2024 Kenya Housing Survey Basic Report by KNBS showed Kiambu, Kajiado, and Nakuru had higher proportions of households in urban areas, at 73.8%, 66%, and 54.9% respectively. This was in comparison to Nairobi and Mombasa Counties, which are categorized as entirely urban.
The city’s appeal grows stronger as more people pour into the city, fueling the rise of high-rise residential apartments, as limited land forces the city to expand vertically rather than horizontally.
Why Demand for Nairobi Residential Apartments Keeps Climbing
Thanks to its strategic geographical position, Nairobi has become a hub for trade, diplomacy, tourism, technology, and construction, drawing people across Kenya, Africa, and beyond.
Policy shifts such as the UN relocation to Kenya and the elimination of visa requirements for Africans have only strengthened the city’s appeal.
However, the rapid growth has intensified a serious housing shortage requiring at least 200,000 units annually. This accounts for a deficit of over 2 million since the implementation of Vision 2030, as stated by the World Bank. The World Bank calls attention to the following:
- High land costs
- Property registration difficulties
- Limited access to affordable mortgages
- Substantial incidental costs such as stamp duty and legal fees
For many Kenyans, home ownership in the city feels further out of reach as many turn to build in rural areas. In Nairobi, the shortage has fueled a shift skyward, driving developers to embrace high-rise apartments as a practical and profitable solution.
Balancing Costs, Regulations, and Opportunities in Nairobi’s Real Estate Market
Kenya’s real estate market tells a bigger story, with the valuation expected to reach over $752 billion by 2025. The residential sector leads the way, accounting for over 85% of the total market value.
The study, by Statista, anticipates a compounded annual growth rate (CAGR) of 5.12% from 2025 to 2029. By 2029, it is estimated to record a market volume of over $944 billion, promising growth for developers and investors.
But how will this fare against the cost of construction? In 2024, the cost of building averaged between Kes. 48,750/- and Kes. 84,000/- per square metre. This highlighted a relatively stable construction cost as reported by the Architectural Association of Kenya (AAK).
There were mixed trends in the prices of inputs, with cement and petrol rising by 11% and 17%, respectively, between December 2023 and December 2024. The surge in construction activity resulted in 77.5% building approval rates, which was largely contributed to by the residential sector.
This growth has also raised a few public concerns stemming from a nationwide survey by AAK and the Kenya Alliance of Residents’ Associations (KARA). From construction safety and violations of zoning regulations to traffic disruptions during construction, Nairobi residents continue to question how responsibly the city is growing upward.
The raised concerns by the public also emphasize the importance of working with reliable developers for a successful and stress-free investment. Seasoned and reliable developers ensure quality construction, transparent communication, and adherence to regulations, minimizing risks.
Conclusion
The rise of high-rise residential apartments is more than an architectural trend. It is a response to the city’s rapid urbanization, limited land availability, and evolving lifestyle needs. This also positions Nairobi as a living story of how the city adapts, grows, and looks to the future.
As developers continue to maximize space to meet the growing demand for housing, it has also forced them to re-strategize in satellite towns serving the socioeconomic prestige of the city. But as Nairobi’s skyline changes, how are satellite towns shaping the future of the housing market?