Landlords and property developers in Nairobi are increasingly settling to build studios and one-bedroom apartments owing to the surging demand for short-term rental plans.
According to Mi Vida Homes CEO Samuel Kariuki, short-term rental plans such as Airbnb were becoming a lucrative venture as a number of Kenyans and tourists preferred them.
He also noted that Kenyans were increasingly preferring short-term rental units because they were affordable as compared to hotels and resorts.
Based on Airbnb rates, property owners were charging an average between Ksh1,100 to Ksh10,000 per night depending on the location and the amenities of the house.
Hotels on the other hand were charging double or triple the cost depending on their category.
For instance, a one-night stay at a 3-star hotel in Nairobi was on average put at Ksh9,000 per night. 5-star hotels on the other hand were charging between Ksh20,000 to Ksh30,000.
Given, the increase in demand, Nairobi landlords were forced to tap into the new lucrative venture.
"The best segment today in real estate is affordable houses given the demand for rentals is deep,' read the statement in part.
On the other hand, Kenyans and tourists also preferred the small units and they were more manageable than other larger units.
Additionally, he indicated that the property developers preferred the small housing units given that they were also easier to maintain as compared to a two-bedroom unit and other bigger units.
The demand for short-term apartments was also driving other ordinary Kenyans to purchase apartments in Nairobi's upmarket and later rent them out.
According to a report by real estate agency, HassConsult Quarter 2 report, a studio apartment in Nairobi's leafy estate costs slightly above Ksh6 million.
“More and more well-furnished and serviced single unit and studio apartments are being sought after even in the high-end market by well-established young professionals and expatriates on short-term contracts,” read the report in part.
