Studios And One-Bedroom Apartments In Nairobi: Which Is Better?
If you are looking to invest in Nairobi’s real estate market, particularly for the first time, one of the dilemmas you will face is whether to buy a studio or a one-bedroom unit. This dilemma is understandable because both unit types occupy nearly the same price ranges, both attract rental demand, and both are prominent features in Nairobi’s property market, especially in areas such as Kilimani, Westlands, and Riverside.
However, the difference lies in whatever you prioritize as an investor. What are your financial goals? This guide breaks down every metric you need to decide whether a studio or one-bedroom apartment is the right investment for you in Nairobi.
Comparing Studios and One-Bedroom Apartments In Nairobi
For you to determine what to choose between studios and one-bedroom apartments in Nairobi, you must first understand how they perform as assets. Here are key metrics to consider when deciding between studios and one-bedroom apartments in Nairobi’s property market:
1. Ease Of Entry For Studios & One-Bedrooms In Nairobi
One of the biggest differences between studios and one-bedroom apartments is the purchase price. Studios are typically cheaper than one-bedroom apartments. In Nairobi, the average price of studios ranges from KES 3.5M – 6.5M ($27K – $50K) while one-bedroom units cost between KES 5.5M and 9.5M ($42K – $73K). For first-time investors or those prioritizing easier market access, studios are the better option. Additionally, studios enable you to acquire multiple units, which is a great way to diversify your portfolio.
2. Tenant Base & Occupancy Patterns Of Studios & One-Bedrooms In Nairobi
Due to their different layouts and sizes, studios and one-bedroom apartments in Nairobi often attract different tenants. Studios typically attract tenants who are always on the move. Think expats, young professionals, leisure travellers and remote workers, commonly referred to as digital nomads. One-bedroom apartments, on the other hand, attract a wider and more diverse tenant pool, consisting of young families, couples, long-term tenants, and corporate leases.
These tenant types tend to prefer spatial separation and long-term occupancy. If you’re the kind of investor who values stability in terms of clientele, one-bedroom apartments are your go-to. However, if you prefer flexible dynamics with your tenants, studios are your ideal option.
3. Rental Yield Of Studios & One-Bedrooms In Nairobi
Studios in Nairobi offer higher rental yields compared to one-bedroom apartments due to the following factors:
- Lower Rent: Since studios typically have less square footage, they are cheaper in rent. This makes them a more affordable option compared to one-bedroom apartments, subsequently attracting more tenants.
- Lower purchase price: This means that as an investor, you have extra money that can be used to multiply your investments and cover other costs such as furnishing, taxes and maintenance instead of pouring all your capital into acquiring one unit.
- Lower maintenance costs: Less square footage means less maintenance and utility costs.
4. Liquidity and Appreciation Of Studios & One-Bedrooms In Nairobi
When it comes to comparing liquidity and capital appreciation between studios and one-bedroom apartments in Nairobi, one-bedroom apartments take the cake. This is because of the following factors:
Broad Tenant Appeal: One-bedroom apartments in Nairobi have a stronger resale value than studios due to their broad tenant appeal, which translates to a larger pool of buyers, including both investors and end-users (people buying with the intention to live in the unit). These end-users are typically first-time homeowners who are usually end-users looking to upgrade from their studios.
This creates a strong resale demand, which drives up the prices of one-bedroom apartments in Nairobi over time. The diverse tenant base of one-bedroom apartments creates stronger and more sustainable long-term appreciation, especially in established residential zones like Kilimani, Riverside and Kileleshwa.
Price Per Square Metre: This is often an overlooked yet significant factor when it comes to property investment. The price per square metre is the total property price divided by the size of the unit. For instance, a 35 sqm studio apartment in Westlands costing KES 6M will cost KES 171,428 per sqm. A 65 sqm one-bedroom apartment in the same location costing KES 8M will cost KES 123, 076 per sqm.
Studio apartments cost more per square metre than one-bedroom apartments because they are priced for their income efficiency. However, over time, this slows down their appreciation potential as it becomes dependent on demand which is volatile. Consequently, there is little room for value expansion per square metre.
One-bedroom apartments, on the other hand, start out with a lower cost per square metre but over time, gain stronger capital appreciation because there is room for these unit types to grow into their value. This is because their extra space offers more usability, lifestyle appeal resulting in increased end-user demand.
Studios and One-Bedroom Apartments In Nairobi: Which Is The Better Option?
Choosing between studios and one-bedroom apartments in Nairobi all boils down to one thing: whether the unit aligns with your financial goals. If you’re looking for easy access into the market and attractive rental yields, studios are your best bet. However, if the goal is long-term stability, appreciation and liquidity, then one-bedroom apartments are ideal.
Regardless of your choice, the Nairobi market highly favours the prepared. Ready to take the big leap to secure your studio or one-bedroom unit? Our collection of developments is designed to ensure you get the most out of your investment. All you have to do is contact us and we’ll help you secure your spot in Nairobi’s dynamic property market.
Frequently Asked Questions (FAQs)
Is a one-bedroom apartment better than a studio?
It depends on your investment goal.
- A studio apartment typically offers higher rental yield due to its lower purchase price.
- A one-bedroom apartment provides more stable tenants and stronger long-term capital appreciation.
In markets like Nairobi, studios are better for cashflow, while one-bedrooms are better for long-term growth.
Should I invest in a studio apartment?
Yes, studio apartments are a strong investment option, especially if your focus is on:
- Higher rental returns
- Lower entry cost
- Airbnb or short-term rental income
Studios are particularly popular in areas like Westlands and Riverside Drive due to high demand from young professionals and business travellers.
Is a one-bedroom bigger than a studio?
Yes. A one-bedroom apartment is always larger than a studio because:
- It has a separate bedroom
- It includes distinct living, sleeping, and kitchen areas
Studios, on the other hand, combine all living spaces into one open-plan room.
Can a studio apartment have more than one room?
No. By definition, a studio apartment is a single main living space that combines the bedroom, living area and kitchen. However, it may have a separate bathroom, a small partition or layout variation. If there is a fully enclosed separate bedroom, it is no longer considered a studio; it becomes a one-bedroom apartment.
