What to Ask Yourself Before Buying a House in Nairobi, LIVE IN OR INVEST?

·       Buying a house is one of the most exciting (and expensive) decisions you will ever make. But before you get swept away by open-plan kitchens, dreamy balconies, and walk-in wardrobes, take a moment to ask yourself: Am I buying this house to live in—or to invest in?

·       The answer will shape everything. From what you buy, to where you buy it, to how it performs for you financially. If you get it wrong, your dream could quickly turn into a liability.

·       Keep in mind, not all Nairobi locations are created equal.

Here is a no-nonsense breakdown of what to consider when buying property in Nairobi.

1. Is it for living or investment? Decide upfront.

Let us be brutally honest.

The house you desire to live in is rarely the one you should invest in.

If you are buying to live in, you will have expectations:

• A spacious lounge

• All bedrooms en suite

• Privacy (no balconies facing your neighbors)

• Lush greenery

• A calm, secure neighborhood

But if you are buying to invest, it is a different ball game:

• Smaller units

• Compact kitchens

• Smart but tight configurations

• Locations with high rental demand, not necessarily where you would want to live

If you try to invest with your personal preferences, you will overbuild or overpay, and your tenants will thank you by copying the idea and building their own.

Think commercially. Buy what the market wants, not what your heart wants.

👉 Read how to start small and grow your portfolio smartly with zero deposit or earn up to KES 150K/month – Read here

2. Will you furnish it or not?

Furnished units bring higher yields, but also:

• Require effort in marketing

• Attract short-term stays (airbnb-style)

• Demand active management

• Face stiff competition

Unfurnished units have lower yields but:

• Offer more stable, long-term tenants

• Almost always stay occupied (if the location is right)

• Are less stressful to manage

Pick your poison. Either stay engaged or find someone trustworthy to handle the headaches. 📞 Let our team handle the heavy lifting while you focus on growing your portfolio.

3. What is your budget (really)?

Your budget is not just the purchase price. It includes:

• Renovations

• Furnishing (if needed)

• Agent commissions

• Legal & transfer fees

• Emergency fund for repairs or vacancy gaps

If you are buying with a loan, ask yourself:
Will I enjoy this investment if every shilling I earn goes into repaying the bank?

🧠 Rule of thumb: Your rent should cover the mortgage AND leave you with a reasonable monthly return.

4. What is the location category?

Not all Nairobi locations are created equal.
Here is how the city breaks down:

🟡 Middle market (affordable, high demand)

• Ruiru, Ngong, Kinoo, Syokimau, Ruaka, Wangige, lower Kabete etc

• Great for affordable rentals

• Small units work best here

• Less prestige, more cash flow

🟠 Upper-middle market (balanced investment + lifestyle)

• Kilimani, Kileleshwa, Lavington, Parklands, Ngong Road, Westlands, Upperhill etc

• Higher entry cost

• Attractive to young professionals, expats

• Mix of furnished & unfurnished demand

• Highest ROIs of all locations

🔴 High-end market (wealth preservation, not cash flow)

• Karen, Runda, Muthaiga, Nyari, Kitisuru, Loresho, Kyuna etc

• Buying here is about prestige

• Rent returns are lower relative to cost

• A KES 100M house can bring in KES 400K/month, sounds good, until you realize you could generate 3–4 times that amount in the upper-middle market with the same capital

5. How will you manage it?

Managing your own unit sounds simple. Until it is not.

If you plan to scale your portfolio, managing every tenant, plumber, broken sink, or cleaning schedule will slow you down.

✔️ Best option: Hire a professional agent.

Think of it this way:

You hire a doctor for your health, a lawyer for your contracts, why gamble with your property?

A good property broker:

• Has networks you do not

• Has ready clients

• Knows trends before they hit the market

• Will market your unit even when you sleep

💡 Case study:

Agnes (not her real name) owns over 20 furnished 2-bedroom apartments in Kilimani and Westlands. She quit her import business to manage them herself. Three months in, she unfurnished half the units and called in a broker. The workload was unbearable, and the vacancies were real. You need insider knowledge to keep units moving. That is where an experienced agent shines.

Final Word

Do not buy blind. Nairobi’s real estate is a thriving beast, but you need a clear head to tame it.
Ask yourself the right questions, check your emotions at the door, and build your portfolio strategically.
Start with what works. Upgrade to what you love.

📞 Need help selecting the right unit for your goals? Call/WhatsApp +254 708 300 718. Let's help you choose wisely.