If you’ve been following the Kenyan real estate market closely, you’ve definitely seen the rise in popularity of Nanyuki in Laikipia county as a location for real estate investment.
Many Kenyan real estate companies have established themselves here. These companies have bought large land parcels and divided them into smaller, more affordable parcels, such as an eighth of an acre, for the area’s lower and middle classes. For instance, our company Axis Assets Ltd, charges as little as Ksh. 280,000 for an eighth of an acre parcel in Nanyuki.
You may also have noticed several branded real estate companies’ vans and buses taking investors from Nairobi to Nanyuki for site tours on Wednesdays and weekends.
If you’re curious as to why there has been a sudden increase in demand for real estate in Nanyuki, let us present some of the arguments here..
1. Honeypots for tourists
Over the years, Nanyuki has seen a significant increase in local and foreign tourist arrivals. This is primarily due to Nanyuki’s proximity to some of Kenya’s most popular tourist destinations, including Mount Kenya National Park, Ol Pejeta Conservancy, Sweetwaters Game Reserve, Treetop Lodge, Ol Jogi Wildlife Conservancy, Segera Ranch, Lolldaiga Hill Ranch and Conservancy, among others.
In addition, Nanyuki is home to some of Kenya’s most luxurious and distinctive hotels, such as the Fairmont Mt Kenya Safari Club, the Mt. Kenya Wildlife Estate, Falcon Heights, Mukima Ridge vacation rentals, and the Maiyan and Enaai golf resort.
Moreover, the majority of Nanyuki’s wealthy estates, like Muthaiga Nanyuki, have long been inhabited by English settlers who have committed their lives to preserving the distinctive culture of these residences, drawing tourists from their nation who come to witness such historic structures.
The need for extra lodging and hospitality services has grown significantly as a result of increased tourism, which encourages real estate developers to build more residences in Nanyuki.
2. High demand for rental property
Nanyuki is the area to invest if you want a good return on rental income. As the town and its business activity expand, housing becomes more and more important.
The British Army Training Center, industrial farming, tourism, and other companies all contribute to the town’s thriving economy. These companies require their employees to live close to their places of employment. Due to this, Nanyuki’s rental market is expanding more quickly than that of the Mount Kenya region’s neighboring towns. According to a recent story in the Standard Daily, Nanyuki real estate recorded a 4.7% rental yield, a 7.6% commercial yield, and a 4.7% capital increase in the land sector.
3. Lamu Port/ South Sudan/ Ethiopia Transport Corridor (LAPSSET)
LAPSSET is a component of Kenya’s 2030 Vision Strategy. Kenya, South Sudan, and Ethiopia are all involved in this massive infrastructure project in Eastern Africa. An international airport in Isiolo and regional highways that run through Isiolo, which is only a few kilometers from Nanyuki, are two of the major infrastructure projects of LAPSSET.
As more traders look for locations for their businesses, Nanyuki, which is close to Isiolo, will experience an increase in commercial activity and the value of the land will rise considerably over the next few years.
4. Military Training Hub
Nanyuki town is home to military personnel from the Kenya Airforce, Kenya Army, and the British Army Training Unit in Kenya (BATUK). According to a recent story in The Star newspaper, BATUK has employed more than 550 Kenyans since 2016 and has added more than Ksh 5.8 billion to the local economy. These military personnel have significantly boosted the demand for rental homes to house the army officers’ families in the area.
5. Booming Economy
Another argument in favor of investing in property in Nanyuki is its expanding economy. This town offers some of the most incredible facilities and resources required for a thriving business and a burgeoning real estate market. These are some of the essential factors driving the economy’s growth, in addition to the availability of resort places for weekend getaways and holidays, military training facilities, and LAPPSET, as was previously covered in this article.
Other reasons supporting Nanyuki’s growth include:
a. There are a ton of horticultural farms.
Many horticulture farms, including Flamingo Horticulture, Kenya’s largest export group and employer of over 7000 people which mostly farm vegetables, fruits and flowers for export, are located in Nanyuki. Given the availability of land for farming and the facilities to increase production, more farmers are setting up shop in Nanyuki to take advantage of the market. The need for accommodation among the thousands of workers at these horticulture farms is another factor driving Nanyuki’s real estate market expansion.
b. Growth of small and medium-sized businesses (SMEs)
The number of registered businesses in Nanyuki has increased over time. All of the main banks, SACCOs, TOYOTA, CMC, DAVIS & SHIRTLIFF, KNIGHT FRANK, and BAT are some of the top organizations supporting the growth of SMEs. It is important to note that these companies require someplace for the employees to live and work.
c. Wonderful climate, amazing views and culture.
Living in Nanyuki will afford one breathtaking views of Mount Kenya and the surrounding areas. Due to its closeness to the equator, the town typically receives warm, sunny weather. In addition to the natural beauty of the region, Nanyuki offers a wide range of cultural attractions and activities, including hiking and birdwatching.
In summary, we can see demand is being created for the continually growing real estate market by all the above listed factors. The potential to invest in real estate in this town is too good to pass up.
Since we Axis Assets Limited have been in this sector for almost ten years, we have the know-how to help you take advantage of these investment opportunities. To begin, get in touch with us right now.