A new report, ranking cities across the world that recorded growth in the last year indicated that Nairobi was top in Africa.
According to the report by Knight Frank, Nairobi was the only city in Africa that made the top 45 global cities that recorded an increase in the last year.
The latest Prime Global Cities Index by Knight Frank ranked Nairobi at position 32 with a 3.5 per cent increase in growth from the first quarter of 2021 to the same period in 2022.
Nairobi posted a 2.4 per cent change in six months from Q3 2021 to Q1 2022 and a 1.3 per cent change between Q4 2021 and Q1 2022.
“This growth can be attributed to pent-up demand. After two years of the pandemic, as we entered Q4 2021 there was a sense of normalcy returning.
"I believe buyers’ sentiments to get on with life motivated their purchasing resumption plans. Also with the pandemic seemingly behind us, we witnessed many expatriates returning to Kenya," Head of Residential Agency at Knight Frank Kenya, Tarquin Gross stated.
The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 45 cities in the world using data from the Knight Frank research network.
According to the report, luxury houses in Nairobi also recorded a 3.5 per cent increase in price in the first quarter compared to a similar period last year.
There was a recovery in demand for the property market following a slowdown due to pandemic economic hardships. Notably, the report showed a deceleration in the price growth of prime properties globally for the first time since the start of the pandemic.
"Interestingly, the proportion of cities registering prime price growth has increased only marginally to 76%, instead it’s the scale of growth amongst the top-performing cities that are behind the index’s acceleration," the report read in part.
"Housing markets are undergoing the most unusual of recoveries. An easing of travel rules in some markets, a surge in safe-haven purchases by domestic buyers, a flurry of activity ahead of the tapering of stamp duty holidays, and an overall reassessment of lifestyles and commuting patterns, are all set against a backdrop of low-interest rates," the survey further established.
Dubai was listed as the city with the fastest rising prime prices in the period studied with a 58.9 per cent change.
