South Africa shows what a stable and well-structured real estate market looks like. Kenya shows what is possible when innovation meets demand. Lulu Kiritu, content manager and public relations specialist at BuyRentKenya, writes:
Kenya’s real estate market has been and continues to be on an upward trajectory. If you visited the country 10 years ago, you would be surprised at how much it has changed. What was once fields is now dotted with high-rise buildings, apartment blocks, and gated estates.
However, despite this impressive progress, Kenya still lags behind more mature markets such as South Africa. In many ways we are where South Africa was about 10 or 15 years ago, full of promise, energy and growth, but still tightening the bolts on our structures and systems.
That’s not a bad thing. In fact, it’s a strategic advantage. Because if you pay attention, you can learn from the path others have already taken. We will borrow what works, avoid what doesn’t, and truly build our own real estate industry.
South Africa’s property market operates on structure, data and decades of experience. Here in Kenya, we have energy, a fast-growing and bold market that continues to shape its identity.
We’re both just at different stages of our journey and building. And if you think about it, Kenya today looks a lot like where South Africa once was. That means you don’t have to reinvent the wheel, just learn how to steer it better.
So what exactly can you pick from a South African real estate strategy and how does it fit into the Kenyan story? Let’s dive in.
South Africa has a system. Kenya has energy
If there’s one thing that South Africa has achieved early on, it’s regulation and structure. Their real estate industry operates on an established framework, strong real estate laws, and a mature mortgage system. Understand the difference in the flow of real estate transactions. Less confusion and more clarity.
Kenya, on the other hand, is still considering the system part. Land records? It’s usually messy. Regulation? It’s improving, but we’re still playing catch up. But what we lack in structure, we make up for in energy. Our developers are fearless, our buyers are curious, and the market keeps moving even in difficult times.
If you can combine that entrepreneurial spirit with South African discipline, you have almost the perfect balance.
Mortgage done right
In South Africa, mortgages facilitate home ownership. According to the Center for Affordable Housing Finance (CAHF), nearly 70% of homebuyers use mortgage financing.
In Kenya, that number is less than 3%.
Now you know everything about the gap. South Africa’s financial system allows ordinary people to buy a home and pay for it comfortably over a long period of time. Meanwhile, Kenya’s housing dream remains largely dependent on cash buyers and developers targeting the upper middle class.
If Kenya wants a truly inclusive real estate market, access to affordable financing must move from discussion to priority. When people’s purchasing power increases, the overall market rises.
Another element that the Kenyan real estate industry can borrow from South Africa is a culture of long-term planning and professional property management. Developments in South Africa are not just focused on architecture, but on sustainability, including proper maintenance, transparent homeowners associations, and strong rental management systems. This structure ensures that the property value remains stable for a long time even after construction is complete.
If Kenya can combine growth momentum with such discipline, it will be able to build not just housing, but a sustainable housing ecosystem.
A growth story that requires structure
When it comes to growth, Kenya’s real estate industry is the very definition. It may not be fully structured yet, but it’s full of life. The demand is real, cities are expanding rapidly, and new roads are opening in areas that once felt too remote to live in. Once quiet and overlooked towns such as Ruaka, Ruiru and Kitengela are now vibrant residential centres.
On the other hand, the South African market is mature and well organized. Growth there has slowed, but the system is working. Kenya still has that nascent energy that keeps things moving and attracting opportunities.
That energy is good, but it needs direction. South Africa’s journey shows what can happen when growth precedes balance. There is too much luxury housing, but not enough affordable housing, and rising costs are crowding out many middle-income buyers. Kenya can learn from it and grow smarter.
If we plan better, improve regulation, expand access to mortgages and build where there is real demand, we can preserve energy without repeating South Africa’s mistakes.
Build on facts, not just intuition
Strong markets are built on information, not just specific goals and ambitions. And in that respect, South Africa is far ahead. Developers and investors there rely on solid research before taking action. Housing reports, price trends, and vacancy rates are easily accessible and people trust the numbers.
In Kenya, many decisions still rely on “gut feeling.” Developers often build what looks appealing rather than what the data supports. result? There are too many luxury apartments and not enough housing for real demand.
For Kenya to mature, it needs a stronger data culture where numbers, not just instinct, guide strategy.
A lesson worth noting
South Africa shows what a stable and well-structured real estate market looks like. Kenya shows what is possible when innovation meets demand. There is a sweet spot somewhere between their system and our psyche. It’s a market that’s sustainable and full of opportunity.
Kenya does not need to copy South Africa’s strategy word for word. But we can definitely learn from the chapters they have already written, especially regarding funding, data, and long-term planning.
After all, real estate is more than just buildings. What matters is how the country grows and whether its people grow with it.
