Nanyuki’s real estate landscape is on the cusp of a significant transformation with the completion of Phase 1 of the National Government’s Affordable Housing Programme in our town. As Upper House Properties, your local real estate experts, we’re here to break down what this means for investors, developers, and potential homeowners in Nanyuki and wider Laikipia. The main impact of these new houses will be felt most significantly in Nanyuki’s rental market.
About the Project: Your New Home in Nanyuki
Located conveniently along Nanyuki-Marura Road, directly opposite Inooro Girls Secondary School, this project is designed to provide accessible and dignified housing to Kenyans across various income brackets. It’s also less than 3km from Nanyuki’s CBD, offering excellent accessibility.
Phase 1 is now complete and features 200 residential units, ready for allocation via balloting. Projected occupation is set for August 2025!
Here’s a breakdown of the units:
- 60 Studio Units (20sqm)
- 20 One-Bedroom Units (30sqm)
- 100 Two-Bedroom Units (40sqm)
- 20 Three-Bedroom Units (60sqm)
All units come with two parking slots and are offered under the Tenant Purchase Scheme (TPS) —a fantastic rent-to-own model with convenient monthly installments.
Unit Features at a Glance:
- All units (excluding studios) include a laundry area.
- Three-bedroom units boast an en-suite primary bedroom for added comfort.
- While units do not come with built-in closets (owners will install these at their own cost) , they appear structurally sound and are aesthetically finished.
- All homes benefit from generous natural lighting, despite not having balconies.
- It’s important to note that these houses are generally small compared to standard-sized units.
Full Pricing Breakdown (TPS Rent-to-Own Model)
Investing in Nanyuki has never been more accessible! Here’s the detailed pricing for these affordable housing units under the Tenant Purchase Scheme. Remember, all units require a 10% deposit and are paid off under the Tenant Purchase Scheme.
| Unit Type & Category | Price (KES) | Monthly Payment (KES) |
| Studio – Social | 640,000 | 3,900 |
| Studio – Affordable | 1,000,000 | 7,246 |
| Studio – Market | 1,600,000 | 10,000 |
| 1 Bedroom – Social | 960,000 | 5,350 |
| 1 Bedroom – Affordable | 1,500,000 | 10,844 |
| 1 Bedroom – Market | 1,900,000 | TBC |
| 2 Bedroom – Social | 1,280,000 | 6,800 |
| 2 Bedroom – Affordable | 2,000,000 | 14,450 |
| 2 Bedroom – Market | 2,400,000 | 21,160 |
| 3 Bedroom – Affordable | 3,000,000 | 21,680 |
| 3 Bedroom – Market | 3,600,000 | 31,750 |
Please note: At the time of our visit, fewer than 10 units were available for purchase.
What Does This Mean for Nanyuki’s Real Estate Market?
This project isn’t just about new homes; it’s about shifting market dynamics, particularly within the rental sector. Here’s our expert analysis:
Studios & 1-Bedroom Units: Filling a Growing Demand
We’ve observed a significant increase in demand for studio and one-bedroom rental properties in Nanyuki, largely driven by young professionals entering the job market with monthly housing budgets between KES 5,000 and KES 15,000. If owners of the 60 studio units and 20 one-bedroom units choose to rent them out, these homes are perfectly positioned to meet this existing gap in the market.
- Investment Opportunity: With rent-to-own monthly payments starting from KES 3,900, these units offer attractive potential rental yields. We project studios could rent from around KES 5,500 and one-bedroom units from KES 9,000, making them ideal for entry-level rental income investments within Nanyuki’s entry-level market.
2-Bedroom Units: Oversupply Looming?
Nanyuki currently has an abundant supply of 2-bedroom apartments. The addition of 100 more units from this project will undoubtedly increase availability further.
- Market Impact: This surge in supply may lead to demand not matching supply, particularly for units priced above KES 20,000/month. Tenants with tighter budgets and a preference for smaller spaces may be drawn to these new, more affordable options.
- Developer Strategy: We advise developers of 2-bedroom apartments to consider diversifying their offerings. Incorporating unique lifestyle features, flexible layouts, or distinctive amenities will be key to remaining competitive in this segment.
3-Bedroom Units: Meeting an Underserved Market
In contrast to 2-bedroom units, there’s a notable shortage of quality 3-bedroom rental options in Nanyuki. Most existing options are either standalone homes or part of shared compounds.
- New Alternative: The introduction of 20 three-bedroom apartments in the affordable housing project can offer a much-needed alternative for families looking for larger living spaces.
- Attractive Pricing: With potential rental rates around KES 30,000 , these units are ideal for tenants with families and budgets under KES 35,000 , alleviating pressure in a market segment that has been underserved for some time.
Our Advice as Seasoned Real Estate Experts
The Affordable Housing Project is a welcome and timely addition to Nanyuki’s housing landscape, and we at Upper House Properties are excited about its potential. However, it will significantly reshape the rental market in particular. We anticipate:
- Downward pressure on prices, especially for 2-bedroom units.
- Increased competition for landlords and developers in the entry- and mid-level housing segments.
- A clear need for private developers to innovate and diversify their unit offerings and amenities to retain market share.
As the market adjusts, we strongly advise both investors and developers to meticulously assess demand dynamics, especially within the 2-bedroom and below category.
Final Word
Upper House Properties is committed to continuously monitoring developments like this and providing you with expert insights to guide your real estate decisions in Nanyuki and the wider Laikipia region.
Ready to explore your options or need personalized advice on navigating Nanyuki’s evolving real estate market? Contact Upper House Properties today!
Disclaimer: This blog post is intended for general informational purposes only. Interested investors and buyers should always carry out their own due diligence and consult professionals before making any property investment decisions.
