Kenya’s capital, has maintained its rank in Prime Global Cities third quarter index, Knight Frank reports.
Out of the listed 45 global cities that recorded annual growth in Q3 2022, Nairobi is at position 29 making it the only African city in the list.
The Knight Frank Prime Global Cities Index, which tracks movement in the top five per cent of residential prices across 45 global cities, reported that globally prime price growth dipped for the second consecutive quarter.
According to the report, Nairobi recorded 2.9 per cent growth in the year from Q3 2021 to Q3 2022 and posted a change of 0.4 per cent in the last six months, and 0.5 per cent over the last three months.
“The index, places Nairobi two positions ahead of London and one position behind Geneva. Wellington City in Australasia, the region consisting of Australia, New Zealand, New Guinea, and neighboring islands in the Pacific Ocean, closes the list of the 45 cities surveyed,” says the report.
Prime is defined as the most desirable and expensive property in a location, defined as the top five per cent of each market by value.
In the period under review the average annual growth dropped from 10 per cent in Q1 to 7.5 per cent in Q3.
The report indicates a marked slowdown, as 19 out of the 45 cities tracked registered a decline between June and September 2022.
It says resilient labor markets, a lack of supply and well capitalized lenders will support prime prices in most markets into 2023.
However, the transition out of a sustained period of low lending rates will lead to pinch points in some markets, particularly amongst highly-leveraged prime landlords, potentially adding to stock levels in some cities.