Residential Projects

Karen Among World’s Hottest Suburbs for Property Deals

The suburb is set to outperform the competition, making it a good bet for investors.

Updated on

July 2, 2018

A country house in Karen, Nairobi. PHOTO | COURTESY

High net-worth investors looking to buy prestigious property in Kenya this year should consider hunting for deals in Nairobi’s Karen estate, especially those considering a suburb with exclusivity, expected price growth, and compelling lifestyle benefits.

Located 16 kilometres west of Nairobi’s CBD, Karen is now listed among the world’s top urban districts for its location, infrastructure, and vibe, making it a strong investment bet, according to Knight Frank’s 2018 Wealth Report.

“From the early 2000s, growth was rapid in Karen, with many of the original five- and ten-acre plots developing into modern housing clusters with shared amenities such as clubhouses, gyms and swimming pools,” said Ben Woodhams, the boss at Knight Frank Kenya.

“This period saw land prices soar from Sh2.3 million per acre to their current levels of over Sh50 million per acre, where they have now stabilized.”

The report notes that the market for townhouses in Karen is now saturated, which has resulted in a plateauing of prices at around Sh80 million to Sh110 million per unit, although record prices have been achieved for bigger stand-alone homes with extensive gardens.

Although Karen remains Nairobi’s most affordable high-end suburb, according to Cytonn Investments, it is interesting to note that land prices in the estate have more than doubled since 2011 when an acre of land in the area was selling for an average of Sh25 million.

Cytonn recently sold out its gated community in Karen, Amara Ridge, where each of the ten units was sold for between Sh90 million and Sh112 million depending on whether a buyer purchased early in the project or towards its completion.

The five-acre development, which sits opposite Bomas of Kenya, features two architectural styles – a classical and a contemporary design to cater to diverse tastes.

“There is still room for these kinds of developments, for people who don’t want a lot of houses together and we are looking into doing more,” Cytonn chief investment officer Elizabeth Nkukuu said in December during the handing over of the houses to their owners.