The real estate industry in Nairobi, Kenya has experienced a notable transformation due to the increasing popularity of short-term rental plans. Furnished apartments for short-term rental, particularly through platforms like Airbnb, have become the latest trend in the market. This surge in demand has led to a shift in the preferences of landlords and investors, who are now focusing on constructing studio and one-bedroom apartments to cater to this growing trend. Samuel Kariuki, the CEO of a prominent real estate firm, explains that the rise in short-term rentals is driven by both Kenyan residents and tourists who find these rental plans more appealing than traditional options such as long-term leases or resort stays.
One of the main reasons for the inclination towards short-term rental plans is the potential financial gain for property owners. Depending on the amenities offered, short-term rental units can be priced between Ksh. 1,000 and Ksh. 10,000 per night. This pricing is significantly more affordable compared to three-star hotels that charge around Ksh. 9,000 per night, and five-star hotels that can demand anywhere from Ksh. 20,000 to Ksh. 30,000 per night. The cost-effectiveness of short-term rental units has attracted both budget-conscious travelers and those seeking a unique and personalized experience during their stay in Nairobi.
As the demand for short-term rental apartments continues to rise, landlords and investors are increasingly exploring the potential benefits of this lucrative market. The preference for small units is not only driven by tenants but also by property developers. Developers find it more convenient to construct and maintain smaller units compared to larger ones. The management of smaller units requires less effort, and the associated costs for maintenance, repairs, and utilities are relatively lower. This aspect further enhances the appeal of investing in studio and one-bedroom apartments for short-term rental purposes.
Furthermore, the high demand for short-term apartments has motivated Kenyans to invest in this sector and subsequently rent out these properties to both local residents and tourists. With studio apartments costing just over Ksh. 6 million, these units have become highly sought after, even in the high-end market. Professionals in Nairobi are increasingly purchasing these apartments as an investment and later renting them out as short-term rental accommodations. This strategy allows them to generate a steady income stream while capitalizing on the growing demand for short-term rentals.
In conclusion, the significant increase in demand for short-term rental plans has led to a remarkable transformation in Nairobi’s real estate industry. Landlords and investors have recognized the potential of this market and are adapting to meet the changing preferences of tenants and travelers. The rise in short-term rental options is driven by their affordability compared to traditional hotel stays. The construction of smaller units is favored due to their ease of maintenance and lower associated costs. As the popularity of short-term rentals continues to soar, it is expected that the real estate landscape in Nairobi will continue to evolve to meet the demands of this dynamic market.