The current deficit in the middle-income housing (MIH) segment in Nairobi is expected to decrease this year.
A new report released by research firm Sagaci, the MIH segment is expected to get back to a balance by the end of the year owing to an increased supply of units by developers in the market.
At the same time, the middle-income population in Nairobi is expected to increase by 5.6 percent to reach 250,000 households by 2024 based on the Compound Annual Growth Rate data for the period 2019-2024.
Last year, the total demand for middle-income housing in Nairobi was estimated to be 18,000 units.
This is expected to grow at a 5.4 percent CAGR over the forecast period, to reach 23,400 units by 2024.
Commenting on the report, Mi Vida CEO Chris Coulson says there remains underlying demand for quality homes in the middle-income segment and this has seen Mi Vida sell 35% of the first phase in less than four months since launch.
“To help underpin the brand and to build market confidence we opened a 500 m² Sales Office with show apartments for the public to come and learn more about the product, amenities, and great value,” he adds.
Despite the growing number of developments, the supply of middle-income developments in Nairobi is expected to decrease in the number of units in the coming years by 5.5%. The report estimates an average of 3,000 new middle-income housing units will be supplied each year in Nairobi in the next 4 years.