NAIROBI, Kenya, Aug 28 – Demand for prime offices and residential property in Nairobi increased during the first half of 2026, according to Knight Frank.
Nairobi’s prime office occupancy rate rose by 4.05 percent to 84.88 percent in the six months to June 2026 compared with a similar period last year.
Knight Frank attributed the improvement to continued absorption of existing prime office space amid limited new supply.
The property consultancy said a shortage of large, high-quality Grade A office space had forced some large occupiers to extend existing leases, while others committed to upcoming developments.
“The improvement in prime office occupancy is an important signal for Nairobi’s commercial property market. We are seeing a clear flight to quality, with occupiers increasingly focused on buildings that offer the right combination of location, quality, sustainability and workplace experience,” Knight Frank Kenya CEO Mark Dunford said.
However, the Grade B and C office market continues to favour occupiers, with high vacancies in secondary stock allowing tenants to negotiate favourable lease terms and move into higher-quality buildings without significantly increasing occupancy costs.
“While the broader office market remains competitive for landlords, the shortage of large prime spaces is creating a more balanced environment at the top end of the market,” Dunford added.
On residential property, the report shows that sale prices for prime residential units increased by 6.2 percent, while monthly rents rose by 0.73 percent compared with December 2025.
The increase was attributed to a continued shortage of quality prime housing stock amid sustained demand from owner-occupiers and renters.
“The prime residential market continues to demonstrate the strength of well-located, high-quality housing. The 6.2% increase in sale prices reflects the imbalance between available quality stock and sustained demand,” Knight Frank Kenya Head of Residential Tarquin Gross said.
“At the same time, buyers are becoming increasingly discerning, placing greater value on security, community, green space and lifestyle amenities.”
