Looking to invest in African real estate? Explore two of the biggest real estate markets on the continent.
African real estate is thriving, attracting diaspora investors looking for safe and long-term value investments. Kenya and South Africa are the continent's leading markets, but which one provides more prospects for diaspora investors? In this article, we'll examine key elements such as Property Prices, Market Growth, Return on Investment (ROI) and legal and Investment processes to help you make informed decisions.
Kenya’s real estate sector has been on an upward curve over the past 10 plus years, driven by the growing economy, rapid urbanization and improved infrastructure development. The market's annual growth rate is projected to be 5.12% between 2025 and 2029 while South Africa’s real estate projected annual growth rate of the market is 2.9% between 2025 and 2029. However, recent economic instability, inflation and currency fluctuations have impacted the South African real estate market.
Kenya’s real estate sector has been on an upward curve over the past 10 plus years, driven by the growing economy, rapid urbanization and improved infrastructure development. The market's annual growth rate is projected to be 5.12% between 2025 and 2029 while South Africa’s real estate projected annual growth rate of the market is 2.9% between 2025 and 2029. However, recent economic instability, inflation and currency fluctuations have impacted the South African real estate market.
Kenya has streamlined foreign investment policies, allowing diaspora investors to own property 100% freehold (except agricultural land). The government has also introduced initiatives like the Kenyan Diaspora Policy and mortgage financing for non-residents to encourage investment.
Foreigners can own property in South Africa , but financing options are limited. Non-residents must have a minimum 50% cash deposit to secure a mortgage, making property investment less accessible.
Kenya also provides a culturally inclusive environment for investors, unlike South Africa , where foreign investors experience cultural issues such as Xenophobia.
In Kenya , the ROI for rentals especially in Nairobi is on average between 6-10%, with short-term rentals having yields as high as 16%. Short-term rentals in prime areas like Westlands and Kilimani have high demand driven by tourism, business travelers and expatriates.
South Africa ’s average ROI for rental income is better than Kenya’s however, South Africa’s fluctuating economy and inflation rate affect long-term yields for investors.
Kenya offers a favorable investment environment with strong ROI potential, investor-friendly policies, economic stability and promising growth projections. South Africa’s real estate market offers better affordability but with a fluctuating economy, the ROI is uncertain.
Kenya is also culturally inclusive for investors, unlike South Africa where there is segregation. Overall, Kenya is the go to option between the two countries for Real Estate Investment options as it has better long term value.
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