As Dubai cements its status as a premier global real estate destination, Kenyan investors are flocking to this global real estate hub, looking to seize the opportunity to invest in one of the fastest-growing cities in the world.
Property developers are reporting a growing trend where wealthy individuals seeking second and third homes in the emirate, enticed by Dubai's promise of luxury, economic stability and lucrative property opportunities.
"There is the interest of Kenyan prospects or potentials who have already invested in the Kenyan market, and now we have Kenyans who want to diversify their real estate portfolio," says Erskine Jumba, the sales director at Kenya's SSS Developers.
The company is partnering with international real estate powerhouse- Reportage Properties on the Verdana project in Dubai.
"Reportage were looking for the right partners who have international finishes, the international financing muscle and a solid market reputation.
"We both vetted each other and recognised the mutual investment opportunities," says SS Developers chief executive Nirav Dave of the strategic alignment between the two firms.
The Verdana project is tailored to meet the unique needs of Kenyan investors looking to diversify their real estate portfolios.
Dubai’s reputation as a "safe haven" with trusted developers, alongside the potential for holiday homes and investment purposes, is driving this interest.
Reportage Properties, which has a presence in around 14 countries, saw the need to enter the Kenyan market with SSS Developers, Mr Jumba adds.
Strategic location, market appeal
Mark Dunford, chief executive of Knight Frank, explains that "instability in the global markets, as well as Dubai’s proximity to a number of emerging markets has driven strong growth since Covid-19."
Despite recent price increases in prime locations, there are still opportunities.
‘‘There are still opportunities to make strong returns in newer, less established locations, but I recommend working with credible advisors, to help find properties which fit your needs,’’ Mr Dunford adds.
Key considerations for investors
For Kenyans looking to invest abroad, especially in a market as dynamic as Dubai's, careful consideration is essential.
Dubai luxury villas on the Palm Jumeirah, an artificial island archipelago.
Photo credit: Shutterstock
Mr Dunford cautions: "The grass often seems greener, particularly when you are only receiving information about a market from afar. I always suggest people look for opportunities in their home markets before looking abroad."
He also advises potential investors to clearly define their objectives and consider the future of the region: " If you have decided to look overseas for your property investment, I urge you to define your objectives, what are your "must haves" and “nice to haves.”
‘‘Think about the future of the region, country, city or area, your price range, what it will cost to maintain this property and who will manage this asset for you in your absence?
Investments in property, particularly in hard currency, are major life decisions. Get all the advice you can from local experts before taking the plunge.’’ Mr Dunfords adds.
Consequently, the Verdana project offers a range of housing options, including townhouses with two, three, and four bedrooms, as well as studio apartments.
Prices start from $135,000 (Sh17 million), with the highest four-bedroom townhouse priced at $613,000 (Sh78 million).
Construction is set to begin in the first quarter of 2025, with completion expected in 2028.
Kingmax Mbarire-marketing developer at SSS, projects substantial returns: "We are expecting a rental on investment of 15 to 25 percent return for both the townhouses and the apartment units.
"We are also expecting a capital appreciation of the units of up to 40 percent for both units."
Navigating market risks
Investing in foreign real estate, particularly in a volatile market like Dubai's, comes with its risks as Mr Dunford notes: "Property markets are cyclical and may even prove to be volatile.
"The big 'cons' are typically due to people under-estimating the costs involved in purchasing, maintaining and managing a property at a distance."
‘’If the market turns on you due to unforeseen circumstances you stand to lose considerable money. However, if you buy the right property in the right place at the right time, you stand to make pretty penny, in any geography,’’ Mr Dunford adds.
As well as risks, investing in foreign real estate has become an attractive avenue for Kenyans to gain additional benefits.
For instance, investing in Portugal's property market can lead to second citizenship, granting access to superior education, advanced technology, and improved living standards.
Lisbon, now a favoured holiday destination for wealthy Kenyans, offers the allure of a diversified investment portfolio in a stable environment.
Dubai's competitive edge
Dubai's real estate market has seen major fluctuations and growth over the past five years, influenced by global economic trends, regional development and government policies.
Pre-pandemic, the market experienced stabilisation with moderate price adjustments. To boost investor confidence, the Dubai government introduced initiatives such as long-term visas and reduced transaction costs.
Elegant and cozy luxury apartment with a of Dubai skyline, large picture-perfect glass windows and sight of ocean waves.
Photo credit: Shutterstock
These long-term residency options, favourable tax regulations and foreign investment incentives have significantly contributed to market growth, positioning Dubai as a robust and attractive destination for global high-net-worth individuals and institutional investors.
The city's thriving real estate market has particularly appealed to wealthy property investors, with a distinct preference for beachfront villas on the Palm Jumeirah and luxury apartments.
While the majority of purchases are intended as investments, many buyers also seek homes for personal use, capitalising on Dubai's promising rental market.
In 2024, a significant shift saw Indian property investors taking the top position in Dubai's market, surpassing Russian buyers. British and Russian investors now hold the second and third positions, followed by those from China, Pakistan, the United States, Iran, the UAE, France and Turkey.
For most Kenyan investors, the move to Dubai is about more than just luxury and economic stability, it's about strategic diversification.
"It's not a matter of buying in Dubai first. Most of them have already invested in the Kenyan market and are now diversifying to Dubai," Mr Jumba explains.
As the city continues to evolve and attract global investors, Dubai remains a top choice for those seeking to expand their real estate portfolios in one of the world's most dynamic markets.
