According to a report by Cytonn Investments 80 percent of them residing in Nairobi and its environs.
The 3.5 million Kenyans account for 25 percent of the 14 million people employed in the country.
“Kenya’s real estate sector has the potential to create about Sh900 billion annually of assets under management. The opportunity in real estate is similar to that which Equity Bank had in Banking and Safaricom in Telecommunications 10 years ago,” Cytonn Investments CEO Edwin Dande said.
He said growth of the real estate sector will be driven by the growing middle income, urbanization, large housing deficit, financial penetration and improved regulations among others.
“The demand in the real estate sector will be in affordable quality commercial space as well as middle income housing,” He added.
The investment company projects the real estate sector to have the highest return on investment at 23.8 percent compared to investment in other markets that includes the public market with fixed Income and equities projected to have a 15 percent return in 2015.
Other sectors that will do well in 2015 include; financial services, Information Communication and Technology and Fast Moving Consumer Goods among others.
According to the report, only 51 percent of the economy is present in the listed markets with the balance in the alternative markets that includes property and private equity.
“This leads to money chasing few opportunities due to limited options on the securities exchanges providing an opportunity for sophisticated investors to make abnormal returns in the alternative markets,” the report states.