Affordable Land Puts Karen Real Estate on the Map

The availability of affordable land for development compared to other high-end areas is set to sustain demand from investors and buyers in Karen.

The average annual total returns from the residential sector in Karen for 2019 is 8.8 percent. The retail and office sectors posted average rental yields of 11.0 percent and 9.2 percent respectively.

According to Cytonn Investments weekly market analysis, the real estate performance in Karen is expected to continue on an upward trend as the area continues to register improved performance across themes.

For the residential sector, Karen recorded relatively high annual uptake of 24.2 percent compared to the overall Nairobi residential market average of 22.8 percent.

The Karen office sector registered occupancy of 88.6 percent on average in comparison to the Nairobi office market average of 83.3 percent.

The retail sector registered average occupancy of 88.8 percent, in comparison to the Nairobi retail market average of 79.8 percent, attesting to Karen’s attractiveness as a real estate investment opportunity.

Main Factors Driving Karen’s Real Estate Development

The main factors that have made Karen an attractive area for real estate development include the following:

Good Transport Network 

Karen is accessible by main roads such as Ngong Road, Lang’ata Road and is served by the Southern Bypass, which was completed during the second half of 2016.

The ongoing dualling of Ngong Road, currently in its second phase of development, that will see some feeder roads in Karen, such as Karen Road, expanded, is likely to further improve the accessibility of the area.

Relaxation of Zoning Regulations

Zoning regulations have been relaxed in Karen to allow for commercial in some nodes and single dwelling up to a half an acre in some areas thus increasing real estate activity and increasing property values.

High-end Schools

Karen’s appeal to wealthy individuals is also driven by the presence of some of the most elite international schools in the country such as Banda School, Gems Cambridge, Brookhouse, and Hillcrest. In 2018, Knight Frank’s Wealth Report listed Karen as one of the top investment hotspots globally.

Serene Environment

With the continued relaxation of zoning regulations and increased development activity, many high-end areas are losing their appeal to high net worth individuals.

Karen, located at the foothills of Ngong Hills and in close proximity to forests such as Ngong Sanctuary Forest and Oloolua Forest has maintained its appealing environmental serenity.

Recreational Facilities

Karen has a unique historical heritage preserved in museums such as the Karen Blixen Museum. It also hosts the Bomas of Kenya, the Giraffe Manor, Karen Country Club and malls including The Hub and Galleria, making the place an ideal home for individuals seeking exclusivity, luxury, and convenience.