Nairobi’s upmarket apartment market in 2026 revolves around four dominant apartment unit types — studio, 1-bedroom, 2-bedroom, and 3-bedroom — each matching distinct tenant lifestyles, economic realities, and investor objectives. The decision on unit size is one of the highest-leverage choices you make as an investor: it controls your entry capital requirement, cash-on-cash return percentage, absolute monthly income, vacancy exposure, management intensity, capital appreciation trajectory, resale liquidity, and portfolio scalability.
In prime suburbs (Westlands, Kilimani, Kileleshwa, Lavington, Riverside, Karen fringes), demographic shifts — younger workforce, rising expat inflows, hybrid work, small-family growth — have solidified clear winners by investor goal. This clear, no-nonsense 2026 guide compares the four apartment unit types across key metrics, real tenant behaviour, holding psychology, and market positioning — so you can select the size that best aligns with your capital, timeline, risk tolerance, and whether you prioritize yield velocity, total income, or long-term growth.
1. Studio Apartments – Maximum Yield Velocity & Entry-Level Power
Typical profile: 35–65 sqm, open-plan, single occupant or couple Price range (prime suburbs): KES 12–32 million (average ~KES 18–24M) Gross rental yield: 7.5–11% (short-term often 9–11%) Cash-on-cash ROI (20% down): 14–22% Best locations: Westlands (peak ADR), Upper Hill (corporate stability), Riverside (executive quiet) Occupancy & turnover: 78–92%, letting time 1–5 weeks Appreciation: 7–11% YoY Liquidity: Very high
Investor fit: Portfolio builders, short-term operators, first-time investors with limited capital. Why studios excel: Lowest entry + highest % return + fastest turnover = maximum ROI velocity.
Downsides: Lowest absolute monthly income, higher management effort (turnover).
2. 1-Bedroom Apartments – Best Entry-Level Balance & Cash-on-Cash Leader
Typical profile: 55–85 sqm, young professionals, DINKs, short-term expats Price range: KES 16–35 million (average ~KES 22–28M) Gross rental yield: 7.0–10% (furnished/short-term 8.5–10.5%) Cash-on-cash ROI (20% down): 12–18% Best locations: Kilimani (balanced demand), Westlands (short-term volume), Riverside (executive stability) Occupancy & turnover: 85–94%, letting time 2–6 weeks Appreciation: 7.5–11.5% YoY Liquidity: Very high
Investor fit: First-time investors, yield-focused portfolio builders, hybrid owner-occupiers. Why 1-bedrooms excel: Best yield-to-capital efficiency, broad tenant demand, fast turnover, low costs.
Downsides: Lower absolute cash flow than 2+ beds.
3. 2-Bedroom Apartments – Strongest Overall Balance & Mid-Term Winner
Typical profile: 90–140 sqm, couples, small families, mid-level expats Price range: KES 25–55 million (average ~KES 35–42M) Gross rental yield: 6.5–9.5% (furnished/short-term 8–10.5%) Cash-on-cash ROI (20% down): 11–16% Best locations: Kilimani (family/professional balance), Westlands (short-term upside), Kileleshwa/Lavington (long-term stability) Occupancy & turnover: 82–92%, letting time 3–7 weeks Appreciation: 8–12% YoY Liquidity: High
Investor fit: Mid-term investors seeking balance, hybrid owner-occupiers. Why 2-bedrooms excel: Highest absolute income among high-yield sizes, broad tenant appeal, solid appreciation, manageable costs.
Downsides: Higher entry/holding costs than 1-bed.
4. 3-Bedroom Apartments – Stability & Absolute Income Leader
Typical profile: 130–220 sqm, families (1–3 children), mid-to-senior expats Price range: KES 35–75 million (average ~KES 48–60M) Gross rental yield: 6.0–8.5% Cash-on-cash ROI (20% down): 9–14% Best locations: Lavington/Kileleshwa (family stability), Kilimani (younger families) Occupancy & turnover: 85–93%, letting time 4–10 weeks Appreciation: 8–13% YoY Liquidity: High but slower
Investor fit: Long-term stability seekers, family owner-occupiers, absolute income focus. Why 3-bedrooms excel: Longest tenant stays, strongest absolute income, highest family-driven appreciation.
Downsides: Lowest % yields, highest costs.
5. Quick Decision Matrix – Best Apartment Unit Type for Your Goal (2026)
| Your Primary Goal | Best Apartment Unit Type | Best Prime Suburb(s) | Why |
|---|---|---|---|
| Maximum cash-on-cash ROI | Studio / 1-bedroom | Westlands / Upper Hill | Highest % return on capital |
| Highest absolute monthly cash flow | 3-bedroom | Lavington / Kileleshwa | 2–3× higher rent |
| Lowest vacancy & fastest turnover | 1-bedroom | Westlands / Kilimani | Broadest, quickest tenant pool |
| Lowest monthly holding cost | Studio / 1-bedroom | Kilimani / Riverside | 40–70% cheaper to own |
| Strongest long-term appreciation | 3-bedroom | Karen fringes / Lavington | Family scarcity premium |
| Portfolio building (scale) | Studio / 1-bedroom | Kilimani / Westlands | Lowest entry, easiest to multiply |
| Hybrid (live-in + rental income) | 2- or 3-bedroom | Kileleshwa / Lavington | Balanced space + income |
Bottom line for 2026 in Nairobi:
- Studio & 1-bedroom win maximum ROI through yield efficiency and scale.
- 2-bedroom wins overall balance — strong income + appreciation.
- 3-bedroom wins long-term stability and absolute growth for family/legacy investors.
Call to Action: Ready to select the best apartment unit type for your investment goals in Kilimani, Westlands, Kileleshwa, Lavington, Karen, or other prime areas? Visit Realty Boris offices today for a private, in-depth discussion with our expert team. We’ll show you current high-performing listings across unit sizes and help you build the right strategy. Contact us to schedule your visit and take the next step toward building your elite portfolio.
