Shift in property market as tenants now prioritise sustainability over space

Homeowners and tenants in Kenya are now pushing landlords, developers and agents to the edge with changing demands and preferences.

Players in the real estate sector now says tenants—both commercial and residential—are increasingly prioritising functionality, environmental consciousness, and long-term cost savings over mere square footage.

Other issues such as smart buildings, sustainable and energy-efficient buildings also rank high on the list.

An estimated over 90 per cent of Kenya’s High-Net-Worth Individuals have embraced green thinking in the properties they invest in, according to the 2024 Knight Frank’s attitudes survey.

"Today’s renters are demanding functionality, sustainability, and cost efficiency," said Peter Njenga, a real estate agent in Nairobi. "One of the first questions clients ask now is about energy-saving features and utility efficiency in a building."

According to Njenga, traditionally designed buildings that fail to incorporate modern amenities and green technologies are being left behind, as tenants gravitate towards spaces that align with current business and lifestyle expectations.

Smart infrastructure such as high-speed internet, intelligent access control systems, automated climate regulation, and energy-efficient elevators are becoming essential in new developments.

In addition, sustainable features like solar panels, rainwater harvesting, water recycling, and the use of eco-conscious construction materials are no longer optional—they’re expected.

“The market is moving towards smarter, greener, and more connected living and working spaces,” Njenga noted. “Buildings that don’t keep up risk becoming obsolete.”

Developers, in turn, are being forced to adapt. Several new projects now advertise solar power systems, borehole water, fibre-optic internet, and smart home integrations to stay competitive. Some developers are even involving buyers earlier in the design process to meet customised preferences.

“These results confirm Kenya’s HNWIs have surpassed the global average of including green priorities in their investment portfolios. They also align with Kenya’s leadership position in renewable energy and its focus on the importance of building certifications,” said Knight Frank CEO Knight Frank Kenya Mark Dunford, during the launch of the report.

Founder and Principal of Urban Green Consultants Amrish Shah, ­- a leading sustainability consultancy in Kenya specialising in high performing buildings, new buildings such as the Purple Tower, a 14 flour development along Mombasa Road, are now cutting energy consumption by up to 27 per cent.

Shah maintains that businesses are becoming increasingly aware of their environmental footprint and are seeking office spaces that reflect their corporate sustainability goals.

“Companies are no longer just looking for buildings—they’re looking for environments that support their values,” Shah said. “Green buildings not only reduce operating costs but also enhance employee well-being and corporate reputation.”

With Nairobi’s middle- and high-income neighbourhoods now dotted with buildings that prioritise green technology and digital integration, the trend is expected to accelerate across the country.

Experts believe that in the near future, smart and green features will be a baseline requirement for any serious development project in Kenya’s property market.