Kenya's Property Market Soars: Unmatched Global Returns in 2025

By Bruno Aero

September 9, 2025 23.57am

Kenya's real estate sector has emerged as a global leader in investment returns, outpacing nine major property markets worldwide. According to a recent report by HassConsult, Kenyan homes have delivered unparalleled returns, with property prices surging 425% since 2000. This remarkable growth trajectory is driven by strong domestic demand and a unique financing structure that sets Kenya apart from other markets.

Key Highlights:

Property Price Growth: Kenya's property prices rose 7.8% in the year to June 2025, the highest level of capital appreciation globally. Australia followed with 4.74% growth, while other major markets remained stagnant or declined.

Rental Yields: Despite rising property prices, Kenya's rental yields remain above the global average at 5.5%, delivering a combined return of 13.28% in the year to June 2025.

Off-Plan Investments: Off-plan developments in Kenya have proven particularly lucrative, with average returns on investment reaching 18.06% in 2025. This is significantly higher than traditional property purchases and global benchmarks.

Why Kenya Outperforms:

Unique Financing Structure: Unlike many international markets, less than 2% of homes in Kenya are mortgage-financed. This makes the market super-resilient, with owners rarely facing mortgage repayment struggles.

 Growing High-Income Earners: Kenya's growth in high earners, particularly in sectors like education, healthcare, trade, and agriculture, has driven housing demand beyond GDP growth.

Population Growth: Kenya's expanding economy and population continue to fuel property demand, unlike many Western and Eastern economies facing declining populations.¹