NAIROBI, Kenya- Coastal land prices in Kenya have risen by as much as 79pc since the Covid-19 pandemic, driven by a surge in lifestyle migration, remote working and demand for beachfront property, a new report shows.
A study by HassConsult has launched the country’s first Coastal Land Price Index, tracking land values across 12 coastal towns between 2015 and 2025.
It finds that Kenya’s coast is increasingly operating as a distinct property market, detached from wider national economic trends.
The strongest growth has been recorded in areas prized for natural beauty and beach access. Diani Beach saw land prices rise by 79.1pc between late 2020 and late 2025, while Watamu recorded a 70.4pc increase over the same period.
Analysts say the coastal market is being reshaped by retirees, diaspora investors, digital workers and long-stay visitors seeking permanent or semi-permanent residence along the Indian Ocean shoreline.
“The Coast has delinked from general economic trends in Kenya and developed its own land dynamics driven by remote working, retirement relocation and long-term lifestyle buyers,” said Sakina Hassanali, Co-Chief Executive and Creative Director at HassConsult.
The report highlights the emergence of a “beauty premium”, where proximity to the ocean, landscape quality and lifestyle experience are increasingly driving land values.
In Nyali, beachfront plots command up to 19pc more than the area average, reflecting the growing value placed on sea views and direct beach access.
Nyali remains the Coast’s most expensive area, with average prices reaching Sh114 million per acre, compared with Sh91.3 million in Mombasa city. However, growth there has slowed as investors shift towards less developed but more scenic locations.
Elsewhere, Kilifi Town posted annual growth of 8.8pc, while Lamu Island recorded a 59.7pc rise over five years, driven by exclusivity and heritage appeal. Malindi saw more modest gains of 22.9pc over the same period.
However, parts of the coast are experiencing slower growth due to infrastructure gaps, land title uncertainties and water shortages, which deter lifestyle buyers.
“Professionals moving to the Coast to work remotely or retire will not invest where land titles are uncertain or water access is precarious,” Hassanali said.
The report suggests Kenya’s coastal property market is increasingly split between high-value lifestyle enclaves and slower-growing traditional areas, with natural beauty emerging as a defining driver of value.
