For years, Kenya’s real estate conversation has been dominated by Nairobi, Kiambu, and Mombasa. Understandably so. According to the Kenya National Bureau of Statistics (KNBS) 2023/24 real estate survey report, 66.7% of residential properties for sale are in Nairobi followed by Kiambu and Mombasa with 11% and 10.7% respectively. For commercial properties on sale in Kenya, Nairobi leads again with 74.1%. Kiambu has 7.2% while Mombasa is third with 6.5%.
But a new contender is quietly, yet steadily, emerging from the shadows. Kilifi.
Kilifi county is gradually transforming into Kenya’s next real estate hotspot, especially for investors looking to tap into the coastal allure and investment opportunities. It offers a compelling blend of untouched beauty, strategic development, and affordability, positioning it as the prime location for future growth. The KNBS report ranks it 5th in both residential and commercial properties for sale in Kenya, at 2.2% and 2.3% respectively.
In this article, we’ll look at a few factors that are fueling Kilifi’s real estate boom and making it a strategic consideration for forward-thinking real estate investors.
- Untapped Authentic, Laid-Back Charm
In the coastal region, Kilifi only comes second to Mombasa in terms of real estate development. While Mombasa has seen significant development, Kilifi offers a more authentic, laid-back coastal feel. Its pristine, less-crowded beaches such as Bofa offer a tranquil escape that is increasingly sought after. Kilifi promises a vibrant culture, an unspoiled coastline, and natural beauty that differentiates it from the more saturated markets.
Despite this charm, Kilifi only has a 0.4% distribution of rental residential properties in Kenya. There’s clearly a gap that residential real estate investors can leverage to grow their portfolio.
- Affordability and Investment Potential
Compared to the Nairobi metropolitan and Mombasa, land and property prices in Kilifi are significantly more accessible. This lower entry point makes it attractive to a wider range of investors, from those seeking holiday homes to developers looking to capitalize on the growing market. As infrastructure improves and demand rises, early investors stand to reap substantial returns.
The current market presents a “sweet spot” – affordable now, with significant appreciation potential as Kilifi’s profile continues to rise. This is not just about buying property; it’s about securing a stake in a region poised for exponential growth.
- Infrastructure Development
Thirdly, infrastructure development is laying the groundwork for future prosperity. Infrastructure such as the Malindi airport and the Malindi-Mombasa highway has not only improved Kilifi’s connectivity to other coastal towns but also enhanced its accessibility. The immediate impact is that it has made Kilifi an attractive destination for both local and international tourists. But beyond that, the infrastructure developments have opened up Kilifi county. It’s just not about convenience, it’s a tangible signal of government commitment to the region’s growth and a catalyst for increased investment and development activity.
- Expansion of the Tourism Sector
Furthermore, the tourism sector is rapidly growing in Kilifi. Watamu and Malindi have long been established tourist destinations. Kilifi town itself is increasingly attracting attention with its own unique attractions like the Mnarani Ruins and Kilifi Creek. This increased tourist footfall will naturally translate into higher demand for accommodation, restaurants, and other tourism-related businesses, driving up property values and creating vibrant commercial opportunities.
For commercial real estate investors, this is not the time to sleep on Kilifi!
- The Kilifi Lifestyle
Lifestyle factors are also contributing to Kilifi’s appeal. The growing desire for a slower pace of life, coupled with the allure of coastal living, is drawing individuals and families away from congested urban centers. Kilifi offers a compelling alternative – a place where you can enjoy a relaxed lifestyle without sacrificing access to essential amenities.
In addition to essential amenities, projects such as Green Heart Kilifi are taking a sustainable approach to real estate development and making it possible for families to live in harmony with nature. This shift in land development is creating a sustainable demand for residential properties, further solidifying Kilifi’s position as a long-term real estate prospect.
Invest in Kilifi: Ride the Wave of Kilifi’s Real Estate Growth
In conclusion, Kilifi is not just another coastal town; it’s a region brimming with potential. These five factors, among others, make the perfect recipe for real estate growth.
For investors seeking the next frontier in Kenyan coastal property, and for individuals dreaming of owning a home on the coast, Kilifi is undoubtedly the place to watch – and invest in – right now.