Kenyan Property Market Delivers Some of the Highest Global Investment Returns in 2025

Cynthia Masibo 
Kenyan property has emerged as one of the highest-yielding investments globally, according to a recent briefing held by HassConsult on September 9, 2025, where they unveiled their latest Hass Property Index report. The report highlights that Kenya’s property market delivered an impressive return on investment in the year to June 2025, outperforming major global real estate markets including the USA, UK, Singapore, and Australia.
Kenya recorded a 7.8 percent rise in property prices in the year to June 2025, the highest annual increase among the countries analyzed in the report. This capital appreciation combined with rental yields of 5.5 percent brought the total property returns in Kenya to 13.28 percent, second only to South Africa in the comparative study. The study examined markets in Kenya, South Africa, the USA, Canada, the UK, France, Switzerland, Singapore, and Australia.

A major driver behind Kenya’s outperforming property market is the strength of domestic demand, propelled by the expanding middle class and growth in high-income earners across sectors such as education, health, trade, agriculture, and banking. Unlike many international markets, where mortgage financing constitutes a large portion of property purchases, less than 2 percent of homes in Kenya are mortgage-financed. This high level of cash transactions has made the Kenyan market notably resilient, shielding property owners from forced sales linked to mortgage repayment challenges faced elsewhere.

The report also identifies off-plan developments as a key entry point for many property investors in Kenya, offering returns averaging 18.06 percent in 2025. The discounts and installment payment schemes in these developments create investment gains that are much higher than typical global averages. However, the international detached house rental market is experiencing some reductions in occupancy, related to declining international NGO and commercial staff presence, though this is gradually shifting towards stronger domestic occupancy.

HassConsult Co-CEO Sakina Hassanali emphasized that the Kenyan housing market’s key strength lies in its financing model and population growth dynamics, which contrast with negative property demand trends and declining populations seen in some western and eastern economies. This combination underpins Kenya’s growing property values and solid rental income returns.

Overall, the briefing presented a positive outlook for Kenya’s real estate sector, attributing its superior returns to robust local demand, low mortgage dependency, increasing wealth, and innovative investment pathways like off-plan purchases. The data underscores Kenya’s status as an attractive market for both local and international property investors seeking high returns in a stable market environment.

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