Determinants of apartment rental prices in Nairobi metropolitan area: a hedonic pricing analysis of an emerging urban market

Purpose This study aims to identify the key factors affecting apartment rental prices in emerging urban markets such as the Nairobi metropolitan area (NMA), to facilitate improved investment, portfolio management decisions and policy development. Design/methodology/approach The paper uses a case study approach to analyse recent apartment lettings and apartment features in the NMA. A sample of 262 transactions was analysed using the hedonic pricing model. The data were collected between April and July 2025. Findings The study identified apartment size, location, provision of a gymnasium, availability of an electricity backup generator, number of bedrooms and the age of the apartment as key determinants of apartment market rent in the emerging urban housing market of the Nairobi metropolis. Research limitations/implications The findings of this paper can be utilised by property investors, developers, valuers, managers, architects, urban planners and policymakers to inform their decisions. This information supports investment decisions by developers and landlords, guides rent-setting and valuation practices for property managers and informs planning and infrastructure decisions by policymakers. However, the results are specific and based on data collected from an emerging urban housing market, the Nairobi metropolis. Originality/value There is limited literature on emerging rental housing markets in Sub-Saharan Africa. This study provides evidence-based insights from the NMA, drawing on location-specific structural, locational and amenity attributes that reflect the city's distinctive socioeconomic structure, level of market formalisation and urban spatial configuration. While these findings offer valuable lessons for comparable emerging cities, they may not be fully generalisable to countries where housing markets, income structures and institutional arrangements differ substantially.