By Michelle Ndaga
Nairobi’s high-end real estate market is experiencing renewed momentum as the United Nations expands its footprint in Kenya, cementing the capital’s position as a global diplomatic hub.
The UN complex in Gigiri, which already houses UNEP and UN-Habitat, is undergoing a major upgrade expected to boost office and conference capacity by 20 percent.
By 2026, the global offices of UNICEF, UNFPA and UN Women will be fully operational in Nairobi, making Kenya the UN’s largest base in the Global South.
This expansion has triggered heightened demand for premium housing in diplomatic “blue-zone” neighbourhoods including Gigiri, Runda, Muthaiga, Kitisuru, Loresho and Spring Valley.
\Landlords who previously grappled with high vacancy rates following the departure of some expatriate tenants are now witnessing renewed interest from diplomats, UN staff and international contractors.
Developers are equally capitalizing on the shift, launching new off-plan projects such as gated communities and serviced apartments tailored to international standards. Market analysts forecast property prices in these enclaves could rise between 15 and 20 percent as relocations gather pace.
The ripple effect is also revitalizing Nairobi’s commercial property sector. Demand for mixed-use developments, upscale retail and hospitality facilities is growing rapidly, particularly around Gigiri and adjacent suburbs. Land prices in the area have already surged sharply since mid-2025, ending years of stagnation.
Nonetheless, the boom has raised concerns about affordability and displacement. Analysts warn that escalating property values may push middle-income households further from central suburbs, deepening housing inequalities.
Experts are calling for government intervention to regulate development in diplomatic corridors and provide incentives for inclusive housing.
Despite these challenges, the UN’s expansion is widely regarded as a strong vote of confidence in Kenya, reinforcing Nairobi’s stature as East Africa’s diplomatic and commercial capital while breathing new life into its premium property market.
