Booming Coastal Towns Where Nairobians Are Moving for the Quiet Life

Nairobi residents are increasingly developing an interest in land in Kenyan coastal towns for lifestyle and capital preservation, a new report by HassConsult shows.

In its inaugural index report for coastal towns released on Tuesday, May 12, the real estate firm noted that Kenyans moving to the coast were mostly retirees or those working remotely.

HassConsult explained that amenities such as beaches, ocean views and maritime activities had contributed to the growing demand.

"Domestic lifestyle buyers at the coast frequently move for retirement, which significantly increases the probability of relocation," HassConsult noted in its report.

"The flow of lifestyle buyers has also increased with the rise of remote working. Remote workers are 20 per cent more likely to relocate from urban centres to rural or coastal areas than workers who do not telework."

Additionally, for those looking for areas to work remotely, internet accessibility in major coastal towns was attractive.

"For these buyers, the general availability of 4G along the coast, 5G in Mombasa and its surroundings, and fixed fibre broadband in Watamu and Malindi has opened most of the coastal strip to remote working," the report stated.

Coupled with demand from foreigners and financial and hospitality institutions, HassConsult revealed that land prices in some coastal towns had increased to over Ksh146 million per acre.

Nyali was the most expensive area, with an acre of land retailing at Ksh146 million for areas with beach frontage and Ksh110 million for areas without beachfront access.

"Nyali’s land has become the most highly valued on Kenya’s coast, driven by its prime location and full urban services, but it is now constrained by near build-out, very limited remaining land supply, and its high pricing level relative to alternative coastal options," the report added.

Mombasa had the second most expensive land parcels, with an acre averaging Ksh91.3 million.

In Lamu, an acre averages Ksh81.7 million, while a similar parcel in Shanzu costs Ksh63.7 million.

HassConsult reported that an acre in Bamburi costs Ksh57.9 million, followed by Mtwapa, where a similar plot goes for Ksh37.9 million.

Other towns and their average prices per acre were Diani (Ksh36 million), Watamu (Ksh35 million), Vipingo (Ksh28.9 million), Kilifi Town (Ksh26.2 million) and Malindi (Ksh19 million).

"Diani’s prices are driven by exceptional beach quality and strong international and Nairobi buyer demand, with improving access reinforcing its position as the coast’s leading premium market. Its prices per acre are also lower than some of the leading growth markets, positioning the node as the coast’s fastest climber in the last five years," HassConsult added.

The Beach Factor in Driving Land Prices 

As indicated in the report, beaches offer aesthetic value for land buyers. This is why plots facing the beach are more expensive than plots that are not near the beach.

Additionally, other factors like the elevation of the land also influence land pricing.

“Beach width is critical, with stretches above thirty metres allowing usable recreation space and erosion buffering, while narrow beaches can halve effective land value,” the real estate firm added in its report.

“Elevation also matters, with plots raised even one to two metres above sea level attracting higher prices due to lower flooding and storm risk.”

In areas such as Diani Beach and Watamu, features such as clear waters, white sandy beaches and stable shorelines have pushed up land prices, with prime beachfront plots selling at significantly higher prices than inland land located less than a kilometre away.

However, land buyers face challenges such as flooding, poor proximity to infrastructure and lack of title deeds for some land parcels.