_Why African City Suburbs Beckon

For the past few years, there has been a growing interest in African suburban towns as more people choose to move away from the bustling city centres.

In Kenya, some of the counties that have benefited greatly due to their proximity to the capital of Nairobi include Kiambu, Machakos, and Kajiado, all satellite towns considered part of the Nairobi Metropolitan area. These towns controlled 60% of all property transactions in Nairobi City County in 2020.

Cost of Living: One of the main reasons for the increased interest in satellite and suburban towns is the high cost of living in the cities. In many African cities, the cost of housing, transportation, and other essentials is significantly higher in the city centre than in surrounding areas. For example, in Lagos, the average monthly cost of renting a one-bedroom apartment in the CBD is around $1,500, while the same apartment in a suburban area can be rented for $800. As highlighted in our Africa Report 2022/23, affordability remains the key to unlocking Africa's housing potential.

For buyers, the affordability aspect pushes them away from the CBD. The cost of housing in key African markets such as Kenya, Egypt, Nigeria, Ghana, and South Africa has risen rapidly in recent years, making it increasingly difficult for low and middle-income earners to live in the city centre. This has led many households to look for more affordable purchase options in surrounding areas, where housing costs are typically lower. For example, in Johannesburg, South Africa, the average price of a house in the CBD is around $500,000, while the same home in a suburban area can be purchased for $300,000.

Lifestyle choices: In addition to the economic factors, many people are also drawn to satellite and suburban towns for their peaceful and less hectic lifestyles. In contrast to the busy and crowded city centres, the suburbs offer more open spaces, greenery, and a slower pace of life. This can be especially appealing to families with children looking for a safer and more secure environment to raise their children. In Kenya, suburbs such as Runda and Karen, located outside of Nairobi's CBD, have seen a rise in popularity among expatriates and upper-middle-class locals seeking a more tranquil lifestyle. Another example is Egypt's New Cairo, located on the outskirts of Cairo, which has become a desirable destination for those seeking a more serene environment with access to green spaces and high-end residential developments. Some occupiers also move to suburbs since they need more space around them. When the Covid-19 pandemic was at its peak, there was a need for social distance, and the majority moved away from the crowded CBDS to the suburbs.

In conclusion, the trend of increased interest in satellite and suburban towns in Africa is driven by various factors, including the high cost of living in the CBDs, the lack of affordable housing, and the desire for a more peaceful and less hectic lifestyle.

Businesses too, are drawn to the suburbs in many African cities such as Lagos and Lilongwe. However, the appeal of an out-of-town location is not necessarily connected with the apparent slower pace of life but has more to do with cost savings as weak currencies push dollar-denominated office rents beyond the reach of many domestic office occupiers. Read more about this trend in our Q4 2022 Africa Offices Market Dashboard.

Are you looking for a home or office to rent or buy in a suburban location in Africa? Talk to us.