A survey by the Kenya National Bureau of Statistics (KNBS) 2020 found that Nairobi metropolitan landlords have been constructing smaller houses after the number of house seekers and demand for residential homes increased.
The report added that the landlords were considering the low and mid-income workers who are relocating to the city in search of job opportunities in the aftermath of the Covid-19 pandemic.
According to data by KNBS, low-income employees earn Ksh 24,000 and below while middle-income ones earn between Ksh 24,000 and Ksh 120,000. With Ksh 40,000, which most mid-income workers earn, one can get a better house at an affordable estate in Nairobi metropolitan area.
The region comprises five counties namely, Nairobi, Kiambu, Kajiado, Machakos and Murang'a counties. HassConsults, a real property firm, noted that these areas are attracting tenants at a growing rate due to infrastructure development, economical rent charges and availability of amenities.
Financial experts say that it is imperative to note that rent should not exceed a third of your salary. Meaning that anyone who earns Ksh 40,000 should spend Ksh13,000 and below exclusive of fare.
These areas represent the ideal situation as another real estate firm, Knight Frank in December 2020 noted that Kenyans would relocate to cheaper rental homes as the pandemic had given them ample time to think about their purchasing power.
They are also suitable for employees working from home as most have also attracted internet providers previously the preserve of Nairobi suburbs.
"Buyers are prioritising greater privacy, outdoor space and a home office. But we also see that close to a third of respondents are more likely to move in the next 12 months, and 50 percent expect the value of their property to fall over the same period, as a result of the pandemic,” the Knight Frank Kenya Buyer’s Survey 2020 stated.
The areas to be considered for rental homes in 2021 include Thika, Juja, Ruiru, Uthiru, 87, Lower Kabete, Gitaru and Kikuyu in Kiambu County.
Ridgeways, Kasarani, Roysambu and Ruaka in Nairobi. Kitengela and Athi River in Machakos and Rongai in Kajiado County.
These areas have witnessed growth due to the development of roads such as Thika Superhighway, Southern Bypass, expansion of Waiyaki Way, the revamping of the railway network by Kenya Railways Corporation and the much expected Bus Rapid Transport (BRT) system which will make it easier for commuters to travel to and from the CBD to satellite towns.
Rents vary from Ksh6,500 to Ksh10,000 for bedsitters and Ksh10,000 up to Ksh18,000 for one-bedrooms.
Previously, Eastlands areas in Nairobi were considered as one of the cheapest estates for residents as houses go for as low as Ksh7,000 for bedsitters and Ksh 3,000 for single rooms. However, over the years, most of them have become congested, littered with garbage, sewage outbursts and rising insecurity.
