Kenya’s housing market is outpacing the world, delivering investment returns that have left traditional property giants like the United States, the United Kingdom and Singapore trailing.

A new Special Report by real estate firm HassConsult showed that home prices in Kenya have climbed by 425 per cent since the year 2000, more than double the growth seen in most of the world’s leading property markets.

In the past year alone, prices rose by 7.8 per cent, the highest increase recorded among nine countries surveyed. Australia came a distant second with growth of 4.74 per cent.

The firm attributed Kenya’s performance to a unique feature of the local market: most homes are bought in cash rather than through loans.

“A critical factor in the strength of Kenya’s housing market has been its source of finance,” HassConsult Co-CEO Sakina Hassanali said.

Adding;

“Homes in Kenya are fully paid, which makes the market super-resilient. Owners rarely end up grappling with mortgage repayments they can’t meet, preventing the waves of forced sales suffered in other economies.”

While less than 2 per cent of Kenyan homes are mortgage-financed, in countries such as the US and UK, the figure is as high as 90 per cent. This difference has helped shield Kenya from the property slumps now hitting heavily indebted markets.

Strong demand has also pushed prices higher. Rising incomes in sectors such as health, education, trade, agriculture and banking have seen more Kenyans able to afford property.

“Multiple factors are driving down property demand in western and eastern economies, not least of which is declining populations, while the value of property in Kenya’s expanding economy and population only keeps growing,” Hassanali said.

Rental income has remained strong as well. Kenyan landlords are earning average rental yields of 5.5 per cent, above the global average. Combined with price appreciation, property investors made returns of 13.28 per cent in the year to June 2025.

Returns are even higher in the booming off-plan market, where early buyers enjoy discounts and flexible payment plans. HassConsult found that eight prime developments delivered an average return of 18.06 per cent this year.

“With off-plan now the main point of entry for many Kenyans into property, the discounts and instalment payments are creating gains that are, in reality, over twice the norm in other global markets,” HassConsult Development Sales Advisor Ian Mutinda said.

The report suggested that as global markets slow, Kenya’s mix of cash buyers, expanding middle class and resilient demand could keep it at the top of the global property investment rankings.