Kenya’s property market has emerged as the world’s top-performing investment destination, delivering the highest returns among major global markets, according to a new report by real estate consultancy HassConsult. Strong price growth, combined with resilient rental yields, has positioned Kenya ahead of developed economies.
The findings show that residential property prices in Kenya have surged by 425% since 2000, outpacing the U.S. (201%), France (151%), and Singapore (122%). In the year to June 2025 alone, Kenyan property values rose by 7.8%, the steepest increase among the markets analysed, with most purchases made in cash. Australia ranked second with 4.74% growth, followed by Singapore (4.15%), South Africa (3.46%), the UK (2.83%), Switzerland (2.58%), and the U.S (2.38%). France posted a 1.11% rise, while Canada recorded a 1.25% decline.
HassConsult attributed Kenya’s exceptional growth to strong domestic demand driven by the expanding middle class, high earners in sectors such as education, health, trade, and agriculture, and mortgage-financed banking staff. The report highlighted that less than 2% of homes in Kenya are mortgage-backed, compared with up to 90% in advanced economies, shielding the market from debt pressures and forced sales.
“A critical factor in the strength of Kenya’s housing market has been its source of finance,” said Sakina Hassanali, Co-CEO of HassConsult. “Homes in Kenya are fully paid, which makes the market super-resilient.”
Kenya’s rental yields stand at 5.5%, above the global average, and combined with capital appreciation, delivered a total return of 13.28% in the year to June 2025. Returns are even higher for off-plan buyers, with a study of eight prime projects showing an average return of 18.06%. “The discounts and instalment payments in off-plan properties are creating gains that are over twice the norm in other global markets,” said HassConsult development sales advisor Ian Mutinda.
While the detached house rental market has faced reduced occupancy due to declining numbers of international NGO and commercial staff, partly linked to cuts in USAID funding, landlords exiting this segment have boosted sales prices, further shifting the market toward domestic buyers.
Overall, Kenya now offers higher property investment returns than any of the other markets analyzed, except South Africa, where long-term depressed prices have sustained higher rental yields.
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