Growing middle class fuels demand for shopping space

Changing shopping trends and a growing middle class has led to a scramble for shopping space in Nairobi.

Developers are increasing their investment in shopping malls with a new wing of the Junction shopping mall expected to be opened before the end of the year in addition to others on Kiambu and Langata roads.

These new shopping centres are seen to be driven by increased purchasing power among Kenya’s middle class which has disposable income.

In addition, the move towards formal shopping in one place is seen as a major driver for these developments.

“The middle class in the country is growing and they have disposable income,” said Mr Trevor Kanja, a property developer of the new Galleria mall on Langata Road, adding that people are moving towards formal shopping as opposed to the traditional kiosks.

Property managers say the appetite for space in shopping malls has been whetted thus the increased investment in these properties especially in the city’s suburb areas.

Knight Frank, one of the leading property managers in the country, has unveiled a new phase of Junction Shopping Centre on Ngong Road.

“Due to increased demand for space, the Junction has embarked on construction work to add more space to the existing facility,” said the property manager in a statement, adding that this is expected to cost Sh1 billion.

The Junction mall has become one of the leading shopping centres serving Kilimani, Lavington, Kileleshwa and Ngong Road suburbs.

Its traffic average is said to be 9,000 on weekdays, a number that increases during the weekends.

Knight Frank also manages The Junction, Crossroads and T-Mall.

Nairobi boasts about 10 major shopping malls with others under construction in various parts of the city including Langata and Kiambu road as well as Eastlands.

As part of modernising Nairobi’s Eastlands area the City Council of Nairobi is looking at new developments in the area mainly new residential apartments to replace the current ones and shopping malls.

Other investors like Virgin Estates Limited also have their eye in this area with plans under way to put up shopping centres.

The right tenant mix is seen as a key factor towards drawing traffic from the widest areas possible with anchor shops being the major traffic pullers for shopping malls, globally.