Stay ahead in Kenya’s fast-moving property market with the latest real estate news for 2025. From government housing initiatives to infrastructure breakthroughs and market trends, these updates shape how buyers, investors, and developers make decisions across Nairobi, Mombasa, and emerging towns.
Here’s what’s making headlines in Kenya’s real estate sector this year.
🔴 Top Kenya Real Estate News – May 2025
1. National Housing Corporation (NHC) Launches 5,000 New Affordable Units
The NHC has rolled out a new phase of the Affordable Housing Program (AHP), launching 5,000 units across Ruiru, Mavoko, and Kitengela.
- Prices range from KSh 3.5M to 8M
- Flexible payment plans: 10% deposit, balance over 15 years
- Target: Low- and middle-income earners in the formal sector
👉 Impact: Increased access to homeownership and reduced pressure on rentals.
2. LAPSSET Corridor: Lamu Port Operational in Phase 1
Phase 1 of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor has officially opened, marking a major milestone for northern Kenya’s real estate.
- First cargo ships docked in Q1 2025
- Expected to boost industrial, logistics, and residential development in Lamu, Isiolo, and Mandera
- Land prices near the port up 22% in 12 months
👉 Investment Tip: Areas along the Isiolo-Moyale highway are now attracting early investors.
3. Ministry of Lands Goes Fully Digital with Ardhisasa Expansion
The Ardhisasa platform now allows end-to-end land transactions online, including:
- Land searches
- Stamp duty payments
- Transfer applications
- Caveat registration
👉 Benefit: Faster, more transparent process—reducing fraud and delays.
4. Rental Yields Rise in Satellite Towns
New data from Knight Frank Kenya shows rental yields in Ruiru, Ruaka, and Athi River now average 6.8–8.3%, surpassing Nairobi’s central areas (5.2%).
- Demand driven by affordable housing, proximity to highways, and remote work
- 2-bedroom apartments rent for KSh 45,000–75,000/month
👉 Opportunity: High-income potential for investors in well-located estates.
5. Diaspora Real Estate Buying Hits Record High
Kenyans abroad invested an estimated KSh 62 billion in property in 2024, up 38% from 2023, according to Central Bank data.
- Top destinations: Ruiru, Diani, Mombasa, and Nyali
- Most use WhatsApp, Zoom, and M-Pesa for remote purchases
- Developers now offer diaspora-specific packages with flexible timelines
👉 Trend: Digital-first buying is now the norm.
6. New Green Building Code Takes Effect
As of April 2025, all new developments over 50 units must comply with Kenya’s Green Building Regulations.
- Mandatory features:
- Solar water heating
- Rainwater harvesting
- Energy-efficient lighting
- Incentives: Tax breaks for eco-compliant projects
👉 Impact: Rise in sustainable, cost-saving homes.
7. Mortgage Access Improves with Sacco Partnerships
Saccos like Stima, Mwalimu, and Harambee are expanding real estate lending, now financing over 45% of mid-range property purchases.
- Lower interest rates (10–13%)
- Faster approvals than banks
- Minimum salary: KSh 30,000
👉 Good News: More Kenyans can now qualify for financing.
Market Outlook: What’s Next?
- Affordable Housing Momentum – Government and private sector to deliver 50,000+ units by 2027
- Digital Transformation – E-titling, AI chatbots, and virtual tours becoming standard
- Coastal Growth – Diani, Malindi, and Watamu attracting international investors
- Urban Decentralization – Satellite towns absorbing 60% of new housing demand
FAQs
Q: What is the biggest real estate news in Kenya in 2025?
A: The launch of 5,000 affordable homes by NHC and the opening of Lamu Port are the most impactful developments, driving access and regional growth.
Q: Are property prices still rising in Kenya?
A: Yes—especially in Ruiru, Ruaka, and coastal areas, with annual appreciation averaging 7–12%.
Q: How is technology changing real estate in Kenya?
A: From Ardhisasa e-titling to live video sales and AI-driven ads, tech is making property buying faster, safer, and more accessible than ever.
