Nanyuki's real estate boom attracts new investors

Ariel view of Nanyuki Town.

Nanyuki is fast becoming a hotspot for real estate investments with property developers and agents flocking to the town to capitalise on its booming market.

The surge in demand for residential and commercial spaces has transformed Nanyuki into a prime investment hub, driven by its strategic location, improved infrastructure, and proximity to major tourist attractions.

Situated along the Nairobi-Nanyuki highway, the town offers easy access to the capital while retaining a serene, high-altitude environment that appeals to a growing number of middle-class buyers, expatriates, and retirees.

Its proximity to Mount Kenya and renowned wildlife conservancies further enhances its appeal, making it a sought-after location for both permanent residents and short-term visitors.

Moreover, the upgrading of the Great North Road to a dual carriageway between Kenol and Marua and the revival of the old metre-gauge railway line from Nairobi to Nanyuki is expected to further boost the area's growth.

The rising demand for modern housing has fueled the development of gated communities and high-end apartments, catering for buyers seeking security, comfort, and modern amenities.

Additionally, Nanyuki's thriving tourism industry has boosted the short-term rental market, with platforms like Airbnb witnessing increased activity as visitors flock to the area.

A 2019 report on Nanyuki's real estate market had an average rental return of 4.7 per cent for residential properties and 7.6 per cent for commercial properties.

Land values also appreciated by 4.7 per cent. According to the Realtors Expo chief executive Charles Ndung'u, realtors and developers are rushing to meet this growing demand, launching new projects and expanding their presence in the town.

"Nanyuki's real estate sector is on an upward trajectory, driven by ongoing infrastructure improvements and a growing number of investors recognising its potential. The expansion of key roads, the revival of the railway, and increased interest from both local and international buyers have positioned the town as a prime investment hub," he said.

He noted that improved security is a major contributing factor to the recent economic growth in the region as reduced crime rates have encouraged more businesses to invest, creating job opportunities and boosting local trade.

"In 2015, I came up with the idea to start the Realtors Expo to showcase the immense potential of Laikipia, particularly Nanyuki town, and to change the long-held perception of the area," he said.

"When I first came to Nanyuki in 2008 as a bank accountant, I witnessed firsthand how security in Laikipia had improved over the years. The presence of the British Army Training Unit in Kenya and a well-established military base played a significant role in enhancing security, creating a stable environment that attracted investors, boosted real estate growth, and positioned Nanyuki as a thriving economic hub."

Ndung'u observed that the booming tourism industry is creating a surge in demand for hotels, resorts, and vacation homes, offering opportunities for developers. "Nanyuki's strategic location as a gateway to popular tourist destinations and wildlife conservancies, combined with its easy access by road and air, makes it a prime destination for both local and international travellers," he said.

"In addition to its investment appeal, the town offers a serene and high-quality lifestyle, featuring a pleasant climate, stunning landscapes, and a peaceful environment. Whether for retirement, vacation homes, or sustainable living, Nanyuki provides the balance between natural beauty and modern amenities."

Alicon Housing Real Estate chief executive Charles Makari attributed Nanyuki's booming real estate sector to the impact of devolution, which has spurred economic growth and infrastructure development in the region.

He said with devolution, more government resources have been directed to counties, improving roads, water supply, and other essential amenities, making towns like Nanyuki more attractive to investors. "The decentralisation of government services has led to increased job opportunities, a growing population, and higher demand for housing and commercial spaces.

As a result, Nanyuki has emerged as a prime location for real estate investments, attracting developers looking to capitalise on the town's expanding economy and improved quality of life," he said.

Makari added that the availability of construction materials has accelerated Nanyuki's real estate growth. He explained that the town's proximity to key suppliers of cement, steel, and other essential building materials has significantly lowered transportation costs, making construction more affordable and efficient.

"In particular, the presence of the Kiganjo quarry has ensured a steady supply of quality stones, reducing reliance on materials from distant locations and lowering construction costs. This has encouraged both small-scale and large-scale developers to invest in housing projects, commercial buildings, and mixed-use developments," he said.

Makari explained that Nanyuki's enhanced internet connectivity has played a crucial role in attracting new residents and businesses.

"With high-speed internet now more accessible, the town has become a hub for remote workers, digital entrepreneurs, and companies looking to expand beyond major urban centres."