Developers continue to roll out new apartment projects across Nairobi and its satellite towns, showing little sign of slowing down despite a notable decline in property prices.
A Q1 2026 report by HassConsult reveals that apartment prices fell in 10 out of 18 surveyed areas, signalling a market correction largely driven by oversupply. High-end and high-density neighbourhoods recorded the steepest annual declines, with Westlands dropping by 7.9%, Upper Hill by 6.8%, Lavington by 6.4%, Ongata Rongai by 5.5%, and Ruaka by 5.1%.
This price slump is attributed to a surge in new developments that has outpaced buyer demand. Popular investment zones such as Kilimani and Westlands have reached what analysts describe as saturation, with more units available than there are buyers in the market.
Economic conditions have further compounded the slowdown. Rising inflation and constrained household incomes have weakened purchasing power among middle-income earners—the primary target for most apartment developments. At the same time, some investors are redirecting funds into more liquid assets such as government bonds and unit trusts, opting for caution amid market uncertainty.
Even so, the pace of construction remains strong, suggesting developers are either committed to ongoing projects initiated during more favourable conditions or are positioning themselves for anticipated long-term demand.
