Kenya’s residential property market is showing contrasting trends, with stand-alone houses posting strong price gains while apartment values in Nairobi continue to weaken due to a persistent supply glut, according to the latest residential property data released by the Kenya National Bureau of Statistics ( KNBS) and market analysts.
The data indicates that residential property prices increased by 4.8% in the first quarter of 2026 compared with the same period last year.
The growth was largely driven by an 8.5% rise in prices for stand-alone houses, highlighting continued demand for detached homes despite a challenging economic environment.
Apartment prices, however, fell by an average of 3.9%, reflecting growing pressure in Nairobi’s oversupplied housing market.
Real estate analysts say the market is increasingly being shaped by changing consumer preferences.
Families are placing greater value on larger homes with private outdoor space, while the supply of detached houses remains relatively limited compared with the rapid expansion of apartment developments over the past decade.
This imbalance has supported house prices even as other segments of the market struggle.
The apartment market continues to face headwinds, particularly in Nairobi suburbs such as Westlands, Kileleshwa and Parklands, where years of aggressive construction have created more units than current demand can absorb.
As a result, developers and property owners have been forced to reduce asking prices and offer more competitive rental rates to attract buyers and tenants.
Property consultants note that while lower interest rates and a more stable Kenyan shilling have improved financing conditions for homebuyers, investors are becoming increasingly selective.
Many are shifting their attention toward stand-alone homes and emerging satellite towns around Nairobi, where land remains relatively affordable and long-term capital appreciation prospects are stronger.
The latest market trends highlight the need for developers to reassess future investment strategies.
Rather than adding more apartment stock in already saturated neighbourhoods, industry experts say future developments are likely to focus on housing types that better reflect evolving buyer preferences for space, privacy and lifestyle.
As Kenya’s urban population continues to grow, balancing supply with changing consumer demand will remain critical to sustaining the country’s real estate sector.