East Africa Real Estate Insights
Macroeconomics
Kenya’s economy showed moderate growth in May, driven by the strong performance of the agriculture and construction sectors, despite inflation rising to 6.3% due to high fuel and food prices. The Kenyan shilling remained relatively stable at Kshs 130 per American dollar.
Tanzania recorded solid growth at 5.7% due to the growth in the mining, tourism and urban infrastructure sectors. Real estate remains a growing sector.
Rwanda maintained stable economic growth, with a strong focus on ICT, construction, and smart city investments. Inflation remained at 4.9%.
Uganda‘s growth projections have been lower than previous years due to currency volatility and delays in the country’s oil infrastructure projects. However, real estate in Kampala remained active, particularly in the commercial and mid-income residential segments.
Regional Insights: Rwanda and Tanzania continue to grow in the real estate sector, while Kenya remains cautiously optimistic despite the current challenges in the country’s economy. From a regional perspective, sustainability in construction and real estate management is gaining traction across East Africa. Kenya Green Building Society (KGBS) and other regional bodies reported increased registration of buildings for EDGE and LEED certifications. This providing positive impact in the real estate sector as developers and investors are recognizing the long-term value of ESG-compliant real estate assets, especially with rising energy costs and climate risks.
