Why Nairobi Landlords are Opting for short term rental plans
The surge in demand for short-term rental plans has caused a significant shift in the real estate industry in Kenya. Landlords and investors are now opting to build studio and one-bedroom apartments to meet the growing demand. According to Samuel Kariuki, the CEO of a leading real estate firm, the trend is being driven by both Kenyans and tourists who prefer short-term rental plans like Airbnb, over traditional rentals and resorts.
Kariuki notes that property owners can charge between Ksh. 1000 to Ksh. 10,000 per night for short-term rental units, depending on the property’s amenities. This is significantly cheaper than three-star hotels that charge around Ksh. 9000 per night, and five-star hotels that charge Ksh. 20,000 to Ksh. 30,000 per night.
The increase in demand has forced landlords and investors to explore this lucrative opportunity. Furthermore, Kenyans and tourists prefer small units because they are easier to manage than larger units. Project developers have also been seen to favor small units, as they are easier to build and maintain compared to larger units.
The high demand for short-term apartments has also driven Kenyans to purchase them and later rent them out to willing Kenyans or tourists. With a studio apartment costing just over Ksh. 6 million, these apartments are even sought after in the high-end market by professionals who later rent them out as short-term rental plans.
The guy noted that property developers favored smaller housing units due to their ease of maintenance, in contrast to larger units such as two-bedroom apartments.
In conclusion, the surge in demand for short-term rental plans has caused a significant shift in the real estate industry in Kenya, with landlords and investors opting to build small units to meet the growing demand. The trend is being driven by both Kenyans and tourists who prefer short-term rental plans, as they are significantly cheaper than traditional hotel stays.