Latest news with #EAPISummit
Zawya
24-04-2025
- Business
- Zawya
Kenya's luxury hospitality sector soars despite challenges
The sector is experiencing significant growth, driven by international visitors and a stable economy. Experts at the upcoming EAPI Summit in Nairobi will address challenges, while exploring opportunities for investment in this thriving market. Kenya's luxury hospitality sector is experiencing significant growth, spurred by an increasing arrival of international visitors, a stable economy, and a rising middle class. Industry experts attribute this surge to the country's unique blend of natural beauty, strategic location, and supportive government policies — all of which are attracting substantial investment in high-end tourism and hospitality. The dynamics of this thriving sector will be a key focus at the upcoming East Africa Property Investment (EAPI) Summit, a premier real estate event. The 12 th annual summit, to be held in Nairobi on May 7-8, 2025, will gather over 450 global investors, developers, and real estate professionals. Participants will explore opportunities to capitalize on investment potential in Kenya, Tanzania (including Zanzibar), Uganda, Rwanda, and Ethiopia — countries showing promising signs of economic recovery and political stabilization. Speaking on the growth of the hospitality industry, Bani Haddad, Founder and Managing Director of Aleph Hospitality, highlights Kenya's untapped potential. 'Kenya presents a great opportunity for hospitality investment due to its unique combination of untapped potential, economic stability, strategic location, and government incentives. Add to that a 35% increase in international visitors and a growing middle class with disposable income. It's clear that the demand for quality hospitality services will continue to rise, offering promising opportunities for local and international investors,' says Haddad. Haddad's Aleph Hospitality is the largest independent hotel management company in the Middle East and Africa. Mark Dunford, CEO of Knight Frank Kenya, adds that improved air connectivity is critical to sustaining this growth and the influx of tourists into Kenya. 'Jomo Kenyatta International Airport must remain a hub for Sub-Saharan Africa region with additional long-haul flights to support along with further investment in the other local airports,' says Dunford. Jomo Kenyatta International Airport is an international airport serving Nairobi, the capital and largest city of Kenya. Fiona Craw, Vice President of the Hotels&Hospitality Group at JLL Africa, notes that Kenya's hospitality sector attracts significant investment, particularly in Nairobi and the Masai Mara area. This growth is driven by robust demand across sectors including corporate, leisure, MICE (Meetings, Incentives, Conferences, and Exhibitions), and government. Nairobi's position as a key economic and transit hub in Africa, coupled with Masai Mara's global reputation as a premier safari destination, further fuels this investment trend. Craw says the ongoing infrastructure development in Kenya, especially in Nairobi, is enhancing accessibility and supporting the country's efforts to establish itself as a leading MICE tourism destination. 'This strategic positioning is driving demand for high-quality accommodation and state-of-the-art meeting facilities,' says Craw. Despite promising opportunities, experts acknowledge several challenges hobbling the industry's growth. 'Kenya's hospitality industry, while exhibiting resilience and growth, faces several challenges such as security concerns, regulatory hurdles, supply chain disruptions, and human resource challenges. The high cost of financing and inflation-driven operational costs further strain businesses,' says Aleph Hospitality's Haddad. He adds: 'For Kenya to solidify its position as a premier global investment destination, collaboration with government and private sectors is key to improving infrastructure and security. Streamlining land acquisition and development approvals will cut delays and costs, making business easier. Diversifying suppliers can ease supply chain issues while investing in talent retention will boost efficiency and service quality'. Visa complexities are another hurdle that could stunt the growth of Kenya's luxury hospitality sector. However, visa complexities are not unique to Kenya as many countries in the rest of the African continent face similar challenges. Visa complexities in Africa are marked by limited visa-free travel, with only a small percentage of countries offering such options to fellow African nations. The process is often expensive and bureaucratic, requiring lengthy procedures and embassy visits. There is also a significant disparity in passport strength across the continent, with some countries enjoying extensive visa-free access while others face severe restrictions. Political instability and security concerns further complicate mobility for citizens from certain regions. Says Dunford of Knight Frank Kenya: 'There are a number of issues facing the industry at present. The easiest of these issues to overcome would be the simplification of the visa/entry process to tangibly encourage visitors.' Another issue that potential investors should be mindful of is the oversupply of hotel rooms in Nairobi, which heightens competition among hotel operators. JLL Africa's Craw estimates that Nairobi recently experienced a significant supply increase, with over 2,000 new hotel rooms introduced in just 18 months. 'As a result, market performance is expected to face downward pressure throughout 2025 as the sector works to absorb this new inventory,' she says. Daniel Trappler, Senior Director of Development for Sub-Sahara Africa at Radisson Hotel Group, partly agrees with Craw about the oversupply of hotel rooms, in some urban Nairobi areas. Trappler says, however, that there are certain nodes that represent pockets of value that are not yet adequately supplied, and with the correct brand could certainly capture market share in Nairobi and lure guests easily, especially with brands that RHG does not yet have operational in the city. Investors that have access to the right capital are therefore in a good position to leverage from this market opportunity. Trappler further adds that both the entry level luxury brand Radisson Collection, and the lifestyle upscale brand Radisson RED, would serve owners with strong returns if built at the right locations. The group is eager to expand in Nairobi in this regard. Despite the oversupply of hotel rooms and intense competition, there are pockets of growth and excellence. Marriott International, which has a presence in Kenya as it operates city hotels in Nairobi and safari lodges in the Masai Mara, says it is seeing strong growth in its business. Jugal Khushalani, Marriott International's Senior Director for Development in the East Africa region, says: 'There remains an increased appetite for high-end experiences in the market, positioning us to further expand our portfolio of luxury brands through urban hotels and safari lodges. Kenya is positioned for sustained growth across all segments, and we remain committed to growing our footprint in the country and supporting the growth of its tourism sector.' The experts agree that despite short-term challenges, the long-term outlook for Kenya's hospitality sector remains positive. They have proposed innovative strategies to address these challenges while ensuring sustained growth in the luxury market. The solutions for sustained growth include: Alternative financing models: Public-private partnership and government-backed incentives can reduce financing costs for new developments. Sustainable tourism practices: High-end resorts are adopting eco-friendly initiatives such as solar energy usage and marine conservation programs to align with global trends favouring sustainable luxury tourism. Enhanced air connectivity: Continued investment in Jomo Kenyatta International Airport and regional airports will improve access for long-haul travellers. Bespoke experiences: Personalization remains key in luxury travel. Exclusive offerings like private safaris, tailored cultural tours, and secluded beachfront villas cater to affluent travellers seeking unique experiences. With strategic investments and collaborative efforts between government entities and private stakeholders, Kenya is well-positioned to solidify its reputation as a premier destination for luxury travel in Africa. The country's diverse offerings — from world-class safaris to coastal retreats — continue to attract discerning travellers seeking unforgettable experiences. The 12 th East Africa Property Investment Summit meeting will take place on 7 and 8 May 2025 at Pullman, Upper Hill, Nairobi, Kenya. For more information and to book to attend the EAPI Summit visit Distributed by APO Group on behalf of API Events.
Zawya
16-04-2025
- Business
- Zawya
Kenya's residential market booms: opportunities and challenges ahead
Kenya's residential market is thriving, driven by rising demand from buyers, expatriates, and international investors. The luxury and affordable housing markets are having a moment with potential buyers. These dynamics will take center stage at the 2025 East Africa Property Investment Summit in Nairobi from 7-8 May at Pullman, Upper Hill, Nairobi, Kenya ( Kenya's residential market is experiencing remarkable growth across the income spectrum, driven by increasing demand from local buyers, expatriates, and international investors. This segment has become a focal point for developers and stakeholders seeking to capitalize on Kenya's evolving real estate landscape. Kenya's housing market is divided into two segments: the luxury and affordable market. On the luxury end of the residential market, Kenya's growing number of high-net-worth individuals and expatriates are driving demand for premium properties in exclusive neighborhoods. This demand for premium properties is driven by affluent buyers, with projections indicating further growth to 16,900-dollar millionaires by 2026, according to the 2024 Africa Wealth Report published by Henley&Partners in collaboration with New World Wealth. Nairobi ranks among the top cities globally for luxury real estate price growth, and in some cases, it has outperformed cities like London and Paris. The dynamics of Kenya's high-end residential market will be explored during the upcoming East Africa Property Investment (EAPI) Summit, a premier real estate event that brings together over 450 global investors, developers, and professionals from the real estate industry. The 12th annual summit will be held in Nairobi from 7 to 8 May 2025, at Pullman, Upper Hill. This year's EAPI Summit will explore how developers and investors can capitalize on investment opportunities in countries such as Tanzania and Zanzibar, Kenya, Uganda, Rwanda, and Ethiopia. These countries are showing promising signs of economic recovery, improving political stability, and stabilizing interest rates. Real estate experts will unpack investment opportunities in Kenya's high-end residential market. Institutional investors and development finance institutions are increasingly paying more attention to the country's residential market as they are funding several development projects and have ambitions of developing good neighborhoods. These investors continue to fund mixed-use developments that combine residential spaces with retail and leisure facilities, attracting younger buyers seeking modern living solutions. Its financial solutions include mortgage financing to cover the property sale price plus closing costs like stamp duty and legal fees; financing for residential property construction; funding products targeting Kenyans seeking affordable housing solutions; cost for residential plots in major towns; and blended finance options for sustainable and affordable student housing. Stanbic Bank/Standard Bank is committed to supporting sponsors that are addressing Kenya's housing needs while promoting sustainability and economic growth in the real estate sector. This is why Stanbic Bank is supporting this year's EAPI Summit as a gold sponsor. While the luxury end of the residential markets remains shaped by location, size of the unit, and breadth of features that align with buyer tastes and aspirations, Stanbic Bank believes that the luxury segment is not starved of attention from investors. However, the affordable housing market remains neglected. And because of this, the financial service company is choosing to back the affordable/middle-income housing segment, where the demand remains strong and impact benefits are richer. 'In that segment, factors shaping the evolution of successful projects are the proximity of projects to key business hubs, accessibility to transport networks, and quality of offering trade-offs relative to price point. It is useful to highlight that the demand in a large section of this market segment is driven by the rental markets and the retail and institutional property investment markets,' says spokesperson Niyi Adeleye, the head of real estate finance for Africa regions at Standard Bank Group, which is part of the Stanbic Bank. The Stanbic Bank/Standard Bank's sponsorship will enable investors to understand Kenya's residential market over the two days scheduled for the EAPI Summit, connecting them with industry experts. The financial services company will back investors aligned with its mandate of investments in the affordable housing market. 'For Standard Bank/Stanbic Bank, our interests remain to actively participate in and contribute to the development and shaping of the built environment in key countries in our footprint of which Kenya is key. Our activities provide opportunities to participate in projects with significant social impacts and deepen environmental impacts in collaboration with the project sponsors through the development of green-rated properties and our provision of green loans to back those developments. In addition, these projects help shape the property evolution of the cities and countries to improve livability and the growth and availability of more robust social infrastructure,' says Adeleye. Despite the growth potential of Kenya's residential market, it faces notable hurdles. Real estate developers struggle with access to long-term financing due to high interest rates and stringent lending requirements, leaving them with limited financing options for residential projects. There are also land tenure issues, with legal disputes over land ownership that can delay projects and increase costs for developers. Another conundrum is that the demand for residences and luxury homes often outpaces supply, which creates competitive pricing pressures. At the EAPI Summit, there will be leading experts helping potential investors navigate through these challenges. Among the experts set to be in attendance is Hass Consult, a company offering high-end homes for sale all over Nairobi. To demonstrate its commitment to helping investors, Hass Consult has joined Stanbic Bank as a sponsor of the EAPI Summit. Hass Consult is bullish on Kenya's housing market, particularly the luxury segment. Farhana Hassanali-Hashmani, the CEO of Hass Consult, says Kenya's luxury housing market is increasingly opening to global buyers. 'As East Africa's economic and cultural hub, the city is increasingly attracting a global, more sophisticated consumer— one who has been exposed to premium real estate and world-class hospitality standards. This demographic, which includes a growing number of expatriates and globally mobile Kenyans, brings with it elevated expectations for quality, design, and lifestyle,' says Hassanali-Hashmani. This global influence has translated into a significant increase in the willingness to pay for luxury and value-added amenities, says Hassanali-Hashmani. She adds that property developers now have more latitude to invest in high-quality finishes, curated experiences, and thoughtful design that elevates not just the property, but the lifestyle it enables. 'Today, luxury is not solely about the physical asset; it's about the entire user experience. Homeowners and investors are looking for developments that offer seamless living—from top-tier management to integrated wellness facilities and thoughtfully designed communal spaces. The emphasis on lifestyle is now central to how value is perceived and how capital growth is sustained. 'There's a strong and growing demand for developments that offer world-class lifestyle amenities—spaces that speak to health, wellness, and fitness, all delivered through a refined user experience. Residents are looking for environments that support balance, well-being, and convenience, echoing global trends in urban living,' says Hassanali-Hashmani. There's also a significant shift in the demographic of buyers in the luxury housing market. Says Hassanali-Hashmani: 'Luxury is no longer confined to the older, ultra-wealthy buyer purchasing sprawling homes. We're seeing a diverse mix of younger, aspirational buyers who are investing in compact yet premium residences—where quality, convenience, and lifestyle matter more than square footage.' Buyers are also more environmentally conscious and are actively seeking housing developments that are eco-friendly, energy-efficient, and built with a responsible footprint. Whether it is the affordable or luxury housing market, Stanbic Bank and Hass Consult remain positive about Kenya and will explore opportunities at the EAPI Summit. The 12 th East Africa Property Investment Summit meeting will take place on 7 and 8 May 2025 at Pullman, Upper Hill, Nairobi, Kenya. For more information and to book to attend the EAPI Summit visit Distributed by APO Group on behalf of API Events. Distributed by API Events: EAPI Summit enquires: Murray Anderson-Ogle Murray@ +27 71 890 77 39 Website:
Zawya
10-04-2025
- Business
- Zawya
Absa Corporate and Investment Banking powers East Africa's real estate future as lead Sponsor of East Africa Property Investment (EAPI) Summit 2025
Under the theme ' Positioning for Opportunity', Nairobi's premier real estate event brings global investors and developers together to shape East Africa's economic landscape. As a proudly Pan-African business with key interests in positively shaping economic policy and investments, Absa CIB has proudly, once again confirmed their participation as a lead sponsor of the 2025 East Africa Property Investment (EAPI) Summit. The EAPI Summit is East Africa's premier real estate event, bringing together over 450 global investors, developers, and professionals from the real estate industry. The 12th annual summit will be held in Nairobi, Kenya on the 7 and 8 May 2025, at Pullman, Upper Hill. The EAPI Summit provides a platform for networking, dealmaking, and gaining insights from key industry leaders. Strategic discussions will focus on investments and capital markets, occupier trends, retail, logistics, hospitality, and affordable housing, making it a vital event for stakeholders in East Africa's real estate sector. The 2025 EAPI Summit marks the third year Absa CIB joins as the lead sponsor. Sandile Mpanza, Head: Commercial Property Finance, Africa Region, Absa CIB says that 'Absa CIB's sponsorship of the EAPI Summit reinforces our continued commitment to positively shaping the economic development of the African markets in which we operate.' The Absa Group operates in several East African countries, including Kenya, Tanzania, Uganda, and the Seychelles. Absa also provides financial solutions and advisory services tailored to the unique challenges and opportunities in the region, reinforcing its commitment to fostering economic growth and development in East Africa. Says Mpanza 'As a trusted partner, we remain dedicated to supporting developers, investors and stakeholders with tailored solutions that unlock opportunities and foster sustainable development. We look forward to engaging with industry leaders to shape the future of East Africa's property market.' Under the theme 'Positioning for Opportunity', this year's EAPI Summit will explore how developers and investors can capitalise on investment opportunities in countries such as Tanzania, Kenya, Uganda, Rwanda, and more. These countries are showing promising signs of economic recovery, improving political stability, and stabilising interest rates. East Africa's diverse real estate sector is gaining interest from institutional, local, and offshore investors across many sectors. In 2025 and beyond, several market watchers expect renewed interest and dealmaking in the commercial, retail, hospitality, and affordable housing real estate segments. While investment opportunities are plentiful in East Africa, regional and global challenges persist and are set to impact the real estate industry. Expert speakers at the EAPI Summit will help investors and market watchers navigate the impact of trade tariffs imposed by the US under President Donald Trump's administration, the outlook of interest rates that remain high globally and convincing pension funds to bankroll infrastructure projects that aim to improve Africa's development ambitions, and more. In addition to Absa, Africa Logistics Properties (ALP) has thrown its weight behind the EAPI Summit as a sponsor. As a Nairobi-based property developer of high-quality warehouses for the occupier market, ALP brings institutional expertise to the EAPI Summit about East Africa's real estate market. After all, ALP is working with multinational companies across Africa, developing modern grade-A logistics and distribution warehousing infrastructure in Kenya and prospectively, the wider East Africa region. ALP will be able to tackle questions at the EAPI summit about complex global economic and geopolitical developments set to impact East Africa's real estate market. This is because ALP has experience and exposure to global markets as it operates according to global public company governance standards. Raghav Gandhi, the CEO of ALP, says: 'ALP has been a regular participant and sponsor for the EAPI summits due to their presence in the real estate sector not just in Kenya but also the continent. They bring together industry leaders and professionals in a vibrant environment, which rarely happens so that we can explore synergies and collaboration opportunities for our respective businesses. Through the panels, the EAPI summits also provide the opportunity for thought leadership and innovation to be shared across key stakeholders so that folks have the chance to learn something new or challenge what they feel is the status quo.' With sponsorships from Absa CIB, ALP, and others, the 2025 edition of the EAPI summit will be another highly-anticipated opportunity for attendees to connect with expert speakers and peers to expand their professional networks. The 12 th East Africa Property Investment Summitt will take place on 7 and 8 May 2025 at Pullman, Upper Hill, Nairobi, Kenya. For more information and to book to attend the EAPI Summit visit Distributed by APO Group on behalf of API Events.
