High rise development in the 10-30 floor range has a 30 year history in Nairobi, but unreliable services and high duties on imported items such as lifts, are now creating disproportionate costs as owners are forced to install full load, stand-by power and guaranteed water systems, along with more sophisticated security measures. In common with many similar markets, decentralization of the real estate sector away from the CBD is well established and gathering further momentum.



Congestion, low building quality, infrastructure over-load and falling security and safety levels are pushing occupiers into more suburban locations, although the implementation of the Urban Transport Study recommendations could revive failing addresses. In Nairobi, the private sector commercial core is increasingly moving to The Hill and other residential areas to the north and west of the CBD.

The CBD is moving down market, although several of the best known streets are, and will remain, a key Government and Civil Service enclave. Development levels and prices are at their highest in non-CBD areas. Both the office and retail markets are shifting to suburban settings. House Valuations solutions to get an estimated value of the residential property valuation Sydney.

Whilst City Plans are prepared, the operations of the planning process are based on participation rather than regulation. Detailed zoning systems are in place but these can and do respond to commercial and/or political pressure. Of particular concern is the need to plan for a population growth rate now running at around 10% per annum? Increasingly, there is a presumption against detailed physical planning which is viewed as a limiting constraint on economic growth and progress.

With the planning authorities handling only around 30% of actual development in Nairobi, the Kenyan system is effectively based on encouragement and guidance. This has enabled large tracts of unplanned and unregulated development to emerge around the major towns and cities, especially Nairobi. Many occupants in these areas have been granted title over their buildings via blanket approvals in order to bring them into the economic/political mainstream, create a tradable investment product and foster a vested interest in building maintenance and upkeep.