Why Property Type Matters in Real Estate Investment
When it comes to investing in real estate in Kenya, choosing the right property type is just as important as choosing the right location. The Kenyan market has a diverse pool of real estate assets—from high-density flats, to family-friendly maisonettes, and luxury villas.
At FrontNine Advisory, we often get this question from investors: “Should I go for a block of flats, a maisonette in a gated estate, or a high-end villa?” The answer depends on your investment goals, budget, location, and the kind of tenants or buyers you want to attract.
This guide will help you break it all down—and choose the best path for your property journey.
1. Flats: The Rental Income Workhorse
Flats (also known as apartments) remain the go-to investment for anyone looking for consistent monthly cash flow. Built vertically and usually in clusters of 4–20+ units, flats are especially popular in Nairobi’s urban areas and satellite towns.
Pros:
- High tenant demand (especially in areas like Roysambu, Githurai, Rongai, and Embakasi)
- Best for mass-market housing
- Ideal for investors focused on rental yields
- Easier to fill units and maintain occupancy
Cons:
- Higher wear and tear and maintenance
- Risk of defaulting tenants in low-income zones
- Low resale price appreciation compared to villas or maisonettes
Ideal Locations:
- Nairobi (Roysambu, Kasarani, Umoja)
- Juja, Thika, Ruaka
- Kisumu and Nakuru towns
ROI Potential: 12%–25% annually, depending on rent collection and design.
2. Maisonettes: The Middle-Class Family Favourite
Maisonettes are double-storey homes with private entrances, often within gated communities. They offer a sweet spot between affordability and space—and are a hit among middle-income families, especially those seeking to own or rent longer-term homes.
Pros:
- Attractive for families and professionals
- Can be built within gated estates with amenities
- Higher resale value compared to flats
- Low tenant turnover
Cons:
- Slower to rent out compared to flats
- Higher construction and finishing costs
- Requires larger plot sizes
Ideal Use:
- Buy and hold for capital appreciation
- Rent to middle-income families in Nairobi’s outskirts or fast-growing suburbs
- Ideal for build-and-sell models targeting professionals
Ideal Locations:
- Syokimau, Kitengela, Athi River
- Thindigua, Kiambu Road, Ruiru
- Nakuru and Eldoret suburbs
- Thika Road
- Limuru
ROI Potential: 8%–15% annually. More when sold after 3–5 years of appreciation.
3. Villas: Prestige and High-End Capital Appreciation
Villas are spacious, stand-alone houses—often in luxury gated communities or built on half-acre plots and above. These are not mass-market investments—they are prestige symbols and ideal for capital-rich investors targeting long-term growth.
Pros:
- High-end buyers = premium resale value
- Can be listed on Airbnb for short-stay luxury income
- Prestige factor and architectural freedom
- Often located in upmarket zones with strong capital growth
Cons:
- Expensive to build and maintain
- Small tenant pool (only suited for expats, diplomats, executives)
- Harder to rent out consistently
Ideal Use:
- Build and sell to high-end clients
- Furnish and lease to embassies or short-stay markets
- Create golf or holiday homes for the elite
Ideal Locations:
- Karen, Runda, Lavington, Kiambu
- Nanyuki, Naivasha, Vipingo Ridge, Diani
- Along Golf Resorts or Coastal Zones
ROI Potential: 6%–12% annually, with capital growth over time
4. Comparing the Numbers: ROI and Investment Entry Points
| Property Type | Avg Cost/Unit (KES) | Monthly Rent | ROI Range | Ideal Buyer |
|---|---|---|---|---|
| Flats | 2M–8M per unit | 8K–30K | 12%–25% | Cash flow investors |
| Maisonettes | 8M–15M | 30K–65K | 8%–15% | Mid-income investors |
| Villas | 20M–70M+ | 100K–500K | 6%–12% | Luxury buyers / Developers |
Note: Costs vary based on location, land price, design, and finishes. ROI improves with good management.
5. So, Which Property Should You Choose?
It all depends on your investment profile:
- Beginner/Small Budget? Start with flats in growing towns.
- Middle-Income Investor? Maisonettes in gated estates offer the best of both worlds.
- Looking for Prestige or Long-Term Capital? Villas are your best bet, especially in coastal or upmarket areas.
Also consider your risk appetite:
- Flats = higher risk, higher return
- Villas = lower risk (if bought well), long hold periods
At FrontNine Advisory, we assess your goals and help you match them to the right property and location.
6. Bonus Tips for Smart Investors
- Mix Your Portfolio: Own a mix of flats and a villa for diversification
- Partner with Others: Co-investing allows you to enter the villa space without full capital
- Leverage Off-plan Projects: Get into projects early for discounted pricing
- Use Expert Management: A managed property gives better ROI and tenant retention
Final Thoughts: Property Type = Investment Strategy
Don’t just buy what everyone else is buying. Real estate is about matching your goals with the right asset type.
Whether you’re looking to collect rent from bedsitters in Juja, sell a villa in Vipingo, or build maisonettes in Syokimau—there’s no one-size-fits-all. But there is a smart way to go about it.
Let FrontNine Advisory help you invest with confidence.
Ready to Start Your Real Estate Investment Journey?
📩 Email: info@frontnineadvisory.com
🌐 Website: www.frontnineadvisory.com
📞 Call/WhatsApp: +254 723 630 231
Invest wisely. Earn steadily. Build your legacy.
