Satellite towns, referenced here as towns just outside Nairobi, have become a hot spot for real estate investment. An expected 35% increase in urban population from 2010 to 2030 means towns in Africa are growing, and Kenya is no exception to this trend, with the accelerating growth of real estate in satellite towns serving as proof of this.
Ongata Rongai, along with other towns like Kitengela, Syokimau, and Ngong, has seen impressive growth in property values. These towns have become popular with people looking for affordable yet modern homes outside of Nairobi’s busy center. While property values in Nairobi’s suburbs have dropped by 0.9%, towns like Ongata Rongai are experiencing high single to double digit growth returns. This growth is driven by improved accessibility and infrastructure, encouraging more people to move to these areas, boosting demand and prices.
Kenya’s housing market has changed a lot over the past 20 years. Apartments are now the preferred choice for many, with their market share growing from 45.3% in 2001 to 62.8% in 2023. On the other hand, detached houses have become less popular, with their market share dropping from 34.2% to just 7.8% during the same period. This trend is clear in Ongata Rongai, where property prices have risen by 8.2% in the last quarter, largely driven by growth in the apartment segment. Strong demand also means investors are reaping handsomely, with the 2023-2024 period providing returns of upto 15% on rental income growth.
Improved accessibility in and out of Rongai, where the SGR terminus now docks, has meant the area is a heartbeat away from the capital city. The National Government’s plan to expand road infrastructure through the Bomas-Kiserian dual carriageway, will further ease the movement of people and goods in and out of the town. For residents and families in the area, the growth of retail malls like Maiyan and Maasai mall, top tier schools from elementary to secondary, as well as hospitals like Getrudes, Aga Khan, Nairobi Womens among others, have made life Ongata Rongai not only vibrant, but suitable for the hustle and bustle of everyday life.
One of the top new developments in Ongata Rongai is Emayian Residences. These homes are designed with modern living in mind, featuring open plan kitchens, large living spaces, secure parking, CCTV, and a rooftop terrace that boasts amazing views of Ngong Hills. For investors, Emayian Residences offers a 8% rental yield and potential capital gains of up to 14% within 12-24 months of completion, making them a smart choice in this growing market. Consequently, long term investors can expect to see rental yield value grow as prices steadily increase in the market, accelerating their ROI.
As Kenya’s urban areas continue to grow, Ongata Rongai is set to remain a smart choice for real estate investors, with Emayian Residences set to become a jewel in the crown of the town due to it’s convenient location in Laiser Hill, it’s modern aesthetic and overall value for money for investors.