A new report by Real Estate expert company Knight Frank has revealed top locations along the Kenyan Coast where wealthy Kenyans are acquiring beach front houses.
The report, which was released by Knight Frank on Thursday, May 16, 2024, detailed that Nyali Estate was rated as the most lucrative destination for Kenyans looking for beach homes along the Coast.
According to the report, the price of an unimproved property in Nyali estate was valued at Ksh120 million, meaning that the estate maintained its previous top spot in ranking.
Knight Frank said the valuation consequently places Nyali beach homes in the same range as Nairobi, where the prices of prime unimproved properties typically range from Ksh50m to Ksh200m per acre.
The valuation of homes in Nyali also places the estate as three times more valuable than other comparable beachfront homes located in other locations along the coast.
Knight Frank Beach report
“Nevertheless, Nyali Beach properties are commanding three times the price of comparable beach front locations, exemplified by recent sales of unimproved one-acre beachfront estates in both Diani Beach and Watamu, fetching approximately Sh40 million per property,” the report reveals.
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The data revealed that relatively small distances and travel time, combined with more limited local facilities and services, can make a difference of several millions to the indicative pricing of beach-front properties.
At the same time, the report noted that at Kikambala Beach, beach-front properties were selling for around Ksh30m per acre.
The valuation of the 1-acre properties at Kikambala which is just over an hour north of Mombasa and Nyali Beach, was similar to properties at Kilifi Bofa Beach, according to Knight Frank.
Further, the report has disclosed that beach properties set on or just beyond larger urban fringes are also commanding relatively lower transaction prices.
“Beach properties at Galu Kinondo Beach, just south of Ukunda and Diani Beach, selling in 2024 for around Sh25m per acre,” reads part of the report.
According to Knight Frank Kenya CEO Mark Dunford, the desirability and strategic location of the Kenyan Coast makes it a property market that is as significant as Nairobi.
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This is despite Mombasa contributing to 4.9 percent to Kenya’s GDP, as compared to Nairobi’s 27.5 percent.
Beach Properties
“The values for its prime properties fully align with Nairobi valuations, and for those willing to move off the beaten track, there are some outstanding hidden gems along the coast”, said Dunford.
Knight Frank further revealed that buyers willing to be further from shops and services can buy beachfront properties for 22% of the typical cost.
The indicative data on the prices of beach- side residential homes along the Kenya’s coast also highlighted a more than 400% spread in Kenya’s high-end home prices from one location to another.
This indicates a significant difference in property values between the two areas due to various factors such as location, amenities, demand, and market conditions.
Head of Coast Region at Knight Frank Kenya Sammy Mukala reported the prices for unimproved beachfront properties on 1-acre sites were based on recent market transactions but did not represent fixed prices for properties in each location.
Knight Frank’s sales data indicates that affordability increases, and buyers are increasingly willing to consider locations further from major towns, including fringe areas, with the trend often resulting in more favorable pricing compared to prime, central locations.
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