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In Nairobi, for example, there has been extensive development along the airport highway in a wide variety of low density, low rise formats. As yet however, the embryonic nature of this form of development, together with regulatory considerations, has prevented the emergence of an institutional market in these areas. The division of the city in to self-governing boroughs is currently mooted, but may only serve to widen economic disparities.

An ongoing programmed of privatization will create further development opportunities and increase liquidity in the market in the years ahead. The office sector in Nairobi is a market in transition. Over the past five years, good economic growth has fostered an upturn in development and investment activity which has considerably increased the supply of office accommodation in the city.

However, whilst supply and demand has generally remained in near-equilibrium on a city-wide basis, significant discrepancies between supply and demand have occurred and continue to arise at a localized level. The successful interpretation of such local factors is essential in viable office development and investment programmers. The recent upturn in office development and investment is traced back to the early 1990s recession and the last round of Elections and the inevitable pause in the market this engendered in 1992. Our expert guides will help you understand clients valuation requirement and preparing valuation reports.

Despite local variations and occasional years, the delivery of new office space to the Nairobi market has risen steadily (see Figure 8). From less than 50,000 sq m in 1992, annual office completion rates (including schemes with minor retail elements) had risen to well over 100,000 sq m by the end of last year. Of this, around 45% (274,000 sq m) has been completed in the CBD and 55% (337,000 sq m) in the decentralised market.

The off-centre market is therefore expanding in volume terms at a faster rate than the traditional, downtown sector. Average annual completion levels in the CBD and decentralised market this decade have been around 34,250 sq m and 42,150 sq m respectively.