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Absorption of grade A and B office space in Nairobi rose by 12 percent in the first half of the year compared to the second half of 2017, according to the Knight Frank’s Kenya market update for the first half of 2018.Increased uptake of office space followed the improved political climate and economic recovery in the period, with the country’s Gross Domestic Product (GDP) having expanded by 5.7 percent in the first quarter. A decline in prime asking rents for offices to US$1.3 per square metre per month, from US$1.4/sqm/m in the latter half of 2017, also boosted uptake. The Kenya Market Update report showed prime residential prices increased marginally by 0.4 percent in the period compared to a 1.8 percent decrease in the second half of 2017, while prime residential rents rose by 0.33 percent. “The increase in prime residential prices and rents is attributed to an improved political climate and the thawing of the wait-and-see attitude among buyers and occupiers,” the report noted. In retail, prime rents remained flat at US$55/sqm/month, with footfall in major shopping malls having increased slightly in the review period as expanding retailers took up anchor tenant spaces vacated by ailing rivals. Occupancy levels remained high for established malls at 90 percent and between 60-75percent for new retail centres. “The property market has changed tremendously over the last two decades: land values have sky-rocketed, a whole shopping centre culture has evolved across the country over that time, and Nairobi’s skyline has been completely transformed by new developments,” said Ben Woodhams Knight Frank Kenya’s managing director. Knight Frank headquartered in London is the leading independent global property consultancy. |
