Supermarkets, warehouses beat homes in rental returns

Carrefour supermarket, Village Market branch as pictured on February 16, 2024.

Photo credit: Francis Nderitu | Nation Media Group

Commercial property developers are beating those in the prime residential segment in rental cash returns, helped by rising demand for warehousing facilities and retail space.

An analysis by real estate firm Knight Frank of rental returns across different market segments shows that retail and industrial developers enjoyed yields of 9.5 percent in the first half of this year, compared to 5.5 percent for those in the residential space.

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Note: The results are not exact but very close to the actual.