Demand for prime offices and residential property in Nairobi rises

Nairobi's demand for prime office and residential properties surged in the first half of 2026, according to Knight Frank. The prime office occupancy rate surged by 4.05 percent to 84.88 percent in the six months ending June 2026, compared to the same period a year earlier. Knight Frank pointed to the continued absorption of existing prime office space and limited new supply as the reason behind the uptick.

The shortage of large, high-quality Grade A office space pushed some major tenants to extend their leases and others to commit to upcoming developments. This rise in prime office occupancy is a positive sign for Nairobi's commercial property market, with a clear preference for buildings offering the right mix of location, quality, sustainability, and workplace experience.

However, the Grade B and C office market still favors tenants, with high vacancies in secondary stock allowing for more favorable lease terms and access to higher-quality buildings without significant cost increases. Knight Frank's CEO Mark Dunford noted that while the overall office market remains competitive for landlords, the lack of large prime spaces is making the top end of the market more balanced.

In the residential sector, prices for prime units climbed by 6.2 percent, while monthly rents rose by 0.73 percent compared to December 2025. The residential market's strength can be traced back to the ongoing shortage of high-quality prime housing amid sustained demand from both owner-occupiers and renters. Tarquin Gross, Knight Frank's Head of Residential, highlighted the growing value placed on security, community, green space, and lifestyle amenities by discerning buyers.