Knight Frank: Nairobi Areas Where New Roads Could Lift Property Values and Investment
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Knight Frank's Kenya Market Update for the first half of 2026 says infrastructure corridors such as Tilisi-Limuru and areas served by major road projects are emerging as locations to watch in Nairobi's property market.
Knight Frank says infrastructure investment is becoming an increasingly important driver of Kenya's property market, with improved connectivity expected to open new development corridors and support long-term property values in and around Nairobi.
The real estate consultancy's Kenya Market Update for the first half of 2026 shows prime residential sale prices increased by 6.2% from December 2025, while monthly rents rose 0.73%. The report attributes the increase to a shortage of quality housing, particularly bungalows, villas, townhouses and maisonettes, against sustained demand from buyers and tenants.
The report identifies Tilisi and Limuru as among the areas already showing signs of increased residential development activity, describing Tilisi as one of Nairobi's fastest-growing residential locations. New gated-community developments are reinforcing the area's appeal, as buyers increasingly favour developments offering security, community amenities and landscaped spaces.
Other potential beneficiaries are linked to Kenya's wider transport infrastructure programme, including the Rironi-Mau Summit Highway, the expansion of Waiyaki Way, the Upper Hill Viaduct and the Ngong-Suswa Road, alongside the proposed Mau Summit-Eldoret-Malaba Expressway.
Knight Frank says infrastructure development remained one of the principal drivers of Kenya's real estate market during H1 2026, with government investment in transport, public-private partnerships, housing and urban development expected to unlock new development corridors. The consultancy cautions, however, that improved infrastructure creates potential for higher property demand and values but does not guarantee price increases in every location along a new road.
Nairobi's commercial market is also recovering, with prime office occupancy reaching 84.88% in H1 2026, an increase of 3.30 percentage points from December 2025, while rising demand for modern logistics facilities points to wider property-market effects from better connectivity.