The making of Nairobi as a hub for global professionals

As global corporations expand their presence in order to strengthen local operations, property developers and investors in Nairobi’s real estate are seizing the opportunity to cater to an increasingly diverse and affluent expatriate community.

The trend follows Nairobi’s position as a hub for international businesses, including the presence of the United Nations Office, the only such UN office operating within the Global South. All these attract expatriates from around the world.

Recently, the United Nations Population Fund (UNFPA) announced plans to relocate almost a quarter of its New York-based workforce to Nairobi.

The move will involve the integration of the current Policy and Strategy Division and the current Technical Division into a Programme Division largely based in Nairobi and the relocation of the Independent Evaluation Office to Nairobi.

The implementation of this initiative started in September 2023, while the phased relocation to Nairobi began in March this year and is poised to continue through to September.

“We’ve merged our programme and technical divisions and are locating most of the new divisions in Nairobi—about 100 positions in total. I believe that’s about a quarter of our [headquarters staff]. This move has been in the works for a couple of years,” says Eddie Wright, a media specialist at UNFPA.

Information relayed by the UN body shows the relocation to Nairobi will bring the organisation’s services closer to where they are needed most, “in terms of geography or time zone,” with corresponding support systems.

Nairobi, UNFPA says, was selected after a rigorous process that compared the city with other duty stations around the world based on criteria “such as staff safety and security, staff experience, UN presence, geographical accessibility, talent availability, and infrastructure”.

Nairobi’s luxury apartments, gated communities, and commercial spaces are part of the requisite infrastructure that meets the evolving needs of such global professionals.

While the top leadership within such organisations prefer high-end estates such as Muthaiga, Runda, and the diplomatic node of Gigiri, other cadres of expatriates can be found in Kilimani and Lavington, estates whose skyline continues to evolve.

The demand for such premium apartments, gated communities, or serviced residences leads to rising property values in these areas, with property developers and landlords adapting to expatriate expectations.

Usually, supporting amenities preferred by the foreign workforce include gyms, coworking spaces, concierge services and restaurants serving exotic cuisine.

A July 2024 report by Knight Frank shows that Kenya’s prime residential market remains resilient, with rents registering a five per cent increase over the previous 12 months, thus underpinning the demand for high-end rental properties.

According to the report, rent for a three-bedroom apartment stands at between $900-1,400 (Sh120,000-185,000) per month, while rent for four- and five-bedroom houses vacillates between $2,000-4,000 (Sh265,000-Sh530,000) per month depending on location “and the perceived exclusivity of the neighbourhood.”

Knight Frank Managing Director Mark Dunford says the type of housing such expatriates look for depends on the level of seniority of the individuals moving in.

In any case, says Dunford, the salary and other benefits, such as housing allowances, provided by their agency will define what they can afford, adding that workers at large foreign organisations or agencies normally occupy properties at the higher end of what the market has to offer.

“Nairobi has a large and growing supply of high-end housing that would attract expatriates,” he says. “The city will have no issue absorbing 100 or so individuals coming into the market.”

While his organisation does not get involved in the actual legal elements of rental agreements with incoming expatriates, it does provide commercial advice and assists with negotiations to ensure an equitable agreement between landlord and tenant.

Dunford says currently, Nairobi has a number of schools offering international curriculums across the different city nodes that should take in extended family members in need of schooling.

In terms of quality lifestyle, Dunford says Nairobi’s commercial scene is no different now from that in developed countries in terms of shopping. 

“There is access to a variety of local and imported goods through a diverse retail offering, food and beverage options, as well as the best airlift on the continent offered by international airlines via Jomo Kenyatta Airport,” he says.

Daniel Ojijo, the executive chairman of Homes Universal Ltd, says apart from hosting the only UN body in the developing world, Kenya’s strategic location and relative stability make it a regional hub for global entities thus positioning it competitively among African cities.

He says the heavy diplomatic presence, where some foreign missions in Nairobi serve multiple countries in the region, has also created a multicultural environment that supports any expatriate transition.

“Nairobi has active expatriate communities and clubs that enhance social life and integration,” says Ojijo.

“The city is also supported by reliable infrastructure such as a stable internet, global banking outlets, and transport systems that suit international professionals. Their presence significantly boosts the premium real estate segment and supports overall market growth.”

Ojijo says among the benefits of hosting higher rental yields in areas popular with expats are increased property value in neighbourhoods like Runda, Karen, and Gigiri, where demand for such housing remains high.

This, he adds, creates investment opportunities for developers targeting this niche market while encouraging quality construction and world-class standards.

Such developments are usually undertaken by reputable builders with modern finishes who include amenities such as gyms, backup power, swimming pools, clubhouses and water storage systems.

“Hosting an expatriate community stimulates related services such as relocation consultants, property management, and interior designers. It also puts pressure on mid-market housing in some areas as land prices increase due to demand for high-end property, creating more earnings for the second-tier market,” he says.

As the city continues to develop world-class infrastructure with an ever-evolving social scene, it is well-placed to continue attracting global professionals through its endless lifestyle possibilities.