UN’s Kenya move stirs prime Nairobi real estate market

Real estate apartments /AI ILLUSTRATION

Nairobi's prime real estate market is looking at a major shake-up with the anticipated surge in demand for high-end housing following the planned relocation of the United Nations diplomatic offices.

Although official timelines remain under wraps, industry players say the expected influx of diplomats, expatriates, and support staff could significantly transform the city’s residential property landscape, especially in prime neighbourhoods.

According to HassConsult, Land prices in Gigiri and its neighbourhood were reported to be in a state of stagnation in the first quarter of 2025 and recorded a strong increase in property prices in June 2025 after the relocation plan was revealed.

Developers have already started off-plan sales for properties marketed as tailored to the needs of diplomats, expatriates, and executives expected to relocate to Nairobi.

“With the UN expected to move four departments to Nairobi, demand for housing will be very high, and we want to ensure our properties meet that need,” said Wonder Properties Kenya founder Jack Wu during the launch of its latest development, Diplomat Residences.

The United Nations Office at Nairobi (UNON) is currently one of four global UN headquarters and already hosts thousands of staff.

However, the anticipated relocation of additional agencies and diplomatic offices is expected to double or even triple housing demand within the next few years.

While the outlook is bullish, concerns remain about affordability for locals. Nairobi already ranks among Africa’s priciest housing markets relative to income.

Wonder Properties’ sales manager, Poonam Arora, however, insisted the company is targeting a broad market, not just elites.

“We sell from as low as Sh5 million, so even the middle class can afford our properties,” he said.

Developers are now prioritising mixed-use gated communities, apartments with international-standard amenities and serviced residences targeting short- to medium-term diplomatic staff.

Analysts project that property prices in Nairobi’s diplomatic blue zones could climb by 15–20 per cent once relocations commence.

Kenya’s government is equally eyeing the opportunity, with the Ministry of Housing indicating that it is working on policies to guide property development around diplomatic corridors, including tighter security regulations and incentives for investors in serviced apartments.