Why Africa’s richest men are buying homes in Kenya

Kenya has emerged the most preferred real estate investment destination in Africa for the continent’s super-rich, according to a new study that also shows that a quarter of Africa’s millionaires own property in the country.

The Knight Frank’s Attitudes Survey data for The Wealth Report 2018 shows that 24 per cent of Africa’s high net worth individuals (HNWIs) own real estate in Kenya, 33 per cent and 67 per cent in the US and UK, respectively, making the country their top real estate investment address in Africa.

This means that out of 22,970 super-rich Africans, with a net worth of Sh5 billion, at least 5,512 own property in Kenya. The report further shows that four per cent of the world’s super-rich already own real estate investments in Kenya, led by African, North American, European, and Asian HNWIs.

The Attitudes Survey collated responses of 500 top private bankers and wealth advisors, who represent 50,000 clients with a combined wealth of Sh3 trillion.

“The fact that Kenya is the top African investment destination of choice for HNWIs on the continent speaks volumes about the strength and growth potential of our property market,” said Knight Frank Kenya managing director Ben Woodhams.

Mr Woodhams recently said that Kenya’s “long-standing reputation as a destination for holiday homes ownership” is one of the key reasons as to why foreigners have increasingly shown enormous interest in the Kenyan property market.

According to the Knight Frank Inside View Kenya 2018 report, four per cent of the world’s HNWIs are considering purchasing homes in Kenya; led by UK millionaires, 63 per cent of whom have expressed their desire to own property in the country.

READ: 63pc of UK millionaires want to buy homes in Kenya

Foreign buyers are interested in Kenyan holiday homes mainly in Malindi, Lamu and Watamu, as well as countryside areas such as Nanyuki, near Mount Kenya, and within private wildlife conservancies.

According to Knight Frank, respondents to the Attitudes Survey said 21 per cent of Africa’s super-rich are considering acquiring homes in Kenya, while a total of three per cent of the world’s HNWIs are looking to buy houses in the country this year, with majority being from India.

READ: Wealthy buyers snap up Sh46 million homes in Nairobi

A few weeks ago, hospitality group Hemingways Collection disclosed that three units of its upcoming private villas in Watamu had already been sold at between Sh45 million and Sh145 million, signaling the huge appetite for luxury homes among wealthy individuals.

Cytonn Investment has also been a beneficiary of the growing appetite for high-end property. The company recently said that its Sh1 billion Amara Ridge, a 10-villa gated community in Karen, was sold out five months before its completion.

Each villa, sitting on a half-acre plot, was sold at an average of Sh100 million – with those opting to buy in cash paying Sh95 million, and those who sought mortgages parting with Sh118 million.

READ: NSSF’s Sh35m Milimani apartments sold-out in 14 days

Still in Karen, a 10-villa gated estate known as Deerpark is nearing completion, with each property up for sale at Sh115 million.

In Kilifi, China Jiangsu Construction Co. – developer of the Sh5 billion Sultan Palace – has sold more than half of its 11 one-storied villas for Sh80 million each.

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