NAIROBI, Kenya– Kenya’s housing sector has emerged as the world’s strongest-performing property market in 2025, outpacing nine major international economies on both capital gains and rental yields, according to new data from HassConsult.
The study, which tracked price movements and rental returns across Kenya, South Africa, the US, Canada, the UK, France, Switzerland, Singapore and Australia, shows Kenya widening its lead as other markets stagnate under the weight of high interest rates and subdued demand.
Property prices in Kenya rose by 7.8 percent in the year to June 2025, the highest growth rate among all markets analyzed.
Australia posted the second-best performance, at 4.74 percent, while most Western and Asian economies recorded slower or negative growth.
Since 2000, Kenyan residential prices have soared by 425 percent, compared with 201 percent in the US, 151 percent in France and 122 percent in Singapore.
“A critical factor in the strength of Kenya’s housing market has been its source of finance,” said HassConsult Co-CEO Sakina Hassanali.
“Homes in Kenya are fully paid, which makes the market super-resilient. Owners rarely end up grappling with mortgage repayments they can’t meet, preventing the waves of forced sales suffered in other economies.”
Less than 2 percent of homes in Kenya are mortgage-financed, versus up to 90 percent in countries such as the US and UK.
This insulation has allowed Kenya to avoid the cyclical crashes that often hit debt-driven markets.
The country’s expanding pool of high earners in education, health, trade, agriculture and finance has also spurred housing demand at levels outstripping GDP growth.
At the same time, Kenya’s population continues to expand, in contrast with the shrinking demographics in Europe and parts of Asia, where housing demand is under pressure.
Rental yields in Kenya remain above the global average at 5.5 percent, with combined returns for investors reaching 13.28 percent in the year to June.
Offplan properties delivered even higher gains, averaging 18.06 percent across eight prime developments reviewed in the report.
“With offplan now the main point of entry for many Kenyans into property, the discounts and instalment payments are creating gains that are, in reality, over twice the norm in other global markets,” said HassConsult Development Sales Advisor Ian Mutinda.
