The Thriving Commercial Space in Nairobi
Nairobi city has grown over the past two decades to become the East African economic nerve center. The city, dubbed the "Green City in the Sun", is surrounded by several expanding suburbs, social amenities and financial systems that foster economic growth. A 2014 real estate report by Jumia House ranked Nairobi as expat communities’ most preferred base for conducting business. This has sobered the property market by shifting the commercial space in the city in a category of oversupply curbing the ever growing demands of the market.
The capital city is home to the Nairobi Stock Exchange (NSE), which is Africa’s 4th largest stock market in terms of trading volumes, and 5th in terms of Market Capitalization as a percentage of the Gross Domestic Product (GDP). Nairobi is also home to many international and non-governmental organizations and embassies, which are located in business hubs such as Westlands, UpperHill and Kilimani. It hosts one of Africa’s most strategic and busiest airport; Jomo Kenyatta International Airport. The airport has and continues to undergo infrastructural developments in order to meet international standard, and maintain its status as Africa’s key transit hub. The airport’s versatility has greatly improved international business relations. This is evident by the increasing number of foreign companies that buy office and commercial space for sale in Nairobi near or within easy access from the airport. One can also get other real estate property such as apartments for sale in Nairobi, townhouses for sale, houses for sale and office spaces for sale in Nairobi.
The Ideal Investment Environment
The good road and communication networks, and the government’s initiative to reduce the cost of registering and doing businesses, have accentuated investors interest in being part of Nairobi’s economic growth. The introduction of the Kenya Bankers Reference Rate and Annual Percentage Rate by the government has also helped by enabling business people access affordable loans. Nairobi County government unveiled a master plan to make the city a 24 hour economy. This by, among other things, providing key services such as street lighting and security, finding new market, and having supportive services remain open 24 hours a day.
The government’s move to lower the cost of electricity in the country through the use of alternative sources like solar and wind energy, has created an enabling environment for businesses. It is predicted that Kenya’s recognition as a middle income country could foster greater interest from global investors, which will further push the demand for commercial space. Not to mention current investor who would be looking to further expand their business. In general, pricing for most commercial spaces in the city is charged per square foot or meters, with variations brought about by location and proximity to social amenities.
Pictures from Jumia House and Flickr