Influx of global hotel brands into Westlands has had a trickling effect in the prices of apartments in the suburb according to the Hass Consult House Price Index Q3 report 2018.
The Real Estate firm in its research says Westlands has become a melting pot for international hotel brands setting up in the area as they seek to tap into Nairobi’s growing market for Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism.
In the past two years, Mövenpick Hotel & Residences Nairobi and Radisson Park Inn have set up shop in Westlands, something which Hass Consult says led into an uptick into the prices of apartments in the area.
Global hospitality chain Hyatt Hotels has already announced that it plans on opening new hotels, Hyatt Place and Hyatt House in Westlands by 2020.
“The flourishing niche market for MICE tourism has opened an opportunity for entrepreneurs who are turning houses and apartments for renting to attendees of major conferences, some of whom prefer serviced apartments and houses over hotels and this is resulting in an uptick in prices,” said Hass Consult’s Head of Development Consulting and Research Ms. Sakina Hassanali.
Ms. Hassanali added that the Westlands is additionally undergoing the “rediscovery” phase of the urban regeneration cycle which is the result of high income earners moving back to neighborhoods that had previously seen an exodus of this tier of residents.
“As the high-end residents vacate, property becomes further developed, often at higher density, and the area will see an influx of lower income earners. This takes the cycle on a further stage, as middle-income earners also seek to relocate. Finally a younger generation of middle income earners comes to develop this area making it get ‘rediscovered,” added Ms. Hassanali.
According to the report, asking rents continued to marginally rise over the quarter at 1.5% and 4.7% on an annual basis with apartments leading the pack on over the quarter at 3.5% while semi-detached houses topped on annual basis at 11.5%.