Nairobi is among the top 100 'most expensive cities' in the world in which to buy a high-end apartment, according to research by the Global Property Guide.
GPG, a site that advises overseas residential property investors, ranks Nairobi 92nd globally. Using the price/rent ratio, GPG says it would take up to 14 years to own a 300 square metre apartment in the city's upmarket residential estates.
"The price/rent ratio indicates the years of rent which would be required to buy such an apartment," states GPG. It sets the buying price at $900 per square metre in posh addresses in Nairobi, with an estimated monthly rent of $1,616. At this pricing, the gross rental yields would be 7.18 per cent, one of the highest returns among ranked cities.
Top-end residential estates in Nairobi include Westlands, Muthaiga, Gigiri, Runda, Karen, Nyari, Kitisuru, Roselyn, Lavington and Kyuna, inhabited by the country's wealthy and troops of expatriates.
The ranking makes the Kenyan capital the most expensive to buy from in Africa, followed by Egypt's Cairo and Tanzania's Dar es Salaam, which rank 93rd and 94th respectively worldwide.
It would cost a buyer $831 and $700 per square metre for apartments in high-end estates in Cairo and Dar es Salaam, with investors getting returns of 9.4 per cent and 8.57 per cent in gross rental yield at monthly rents of $977 and $500 respectively.
Subsequently, it would take 11 years and 12 years in Cairo and Dar to acquire 150 square metre and 100 square metre high-end properties using rental income.
Monaco, popular as 'home of the super-rich', tops the list as most expensive cities to buy in at $53,026 per square metre, with gross rental yields of 1.9 per cent at a monthly rent of $10,099 per square metre.
London follows with a buying price of $32,745 per square metre, and a gross rental yield of 2.09 per cent at a monthly rent of $6,856 per square metre.
Taipei in Taiwan however has the largest price/rent ratio of 64, the number of years it would take to buy out a 120 square metre high-end apartment using rental income.