UN Relocation to Nairobi: A Global Shift with Local Real Estate Ripples
Written by: Erick Ochieng Edited by: Linet Kanario
In a landmark move set to redefine global development operations, Antonio Guterres, the current Secretary-General of the United Nations, recently reaffirmed the UN’s objective of relocating several key programs and a significant portion of its staff from New York to Nairobi. As part of this initiative, 2,000 employees are scheduled to be relocated by July 2025. This move by the UN, particularly for agencies like UNFPA and UNOPS, is driven by a compelling blend of the need for enhanced operations, cost-cutting imperatives and the UN’s strategic desire to strengthen its presence in the Global South, primarily to be closer to the populations and the regions it serves.
This relocation is not only a geographic shift but also a symbolic one, solidifying Nairobi as a new epicenter of global diplomacy and humanitarian coordination in Africa. As the UN transfers some of its operations to Kenya’s capital, the ripple effects of this move are already being seeing in Nairobi’s luxurious neighborhoods. Notably in Gigiri, the traditional blue diplomatic zone, and Two Rivers Social City, the city’s mixed use development hub.
The Strategic Shift to Nairobi
The presence of the UN in Nairobi dates to 1973, when the United Nations Environment Programme (UNEP) established the first UN headquarters in the Global South. In 1978, the United Nations Centre for Human Settlements, also known as UN Habitat, joined the UNEP in Nairobi. Today, 23 UN agencies have operations in Nairobi. Additionally, the UN plans to set up three new global offices i.e. the United Nations Children’s Fund, the United Nations Population Fund, and the United Nations Entity for Gender Equality and the empowerment of women, in Kenya by the end of 2026, as reported by the Business daily.
The shift to Nairobi has been informed by factors such as its strategic location in Africa, established UN hub (UNON already based in Gigiri), political stability, strong infrastructure and growing regional influence. By the end of this transition, the UN will cement Nairobi as a hub for its operations.
Implications for Real Estate in Gigiri
Gigiri is the capital’s diplomatic center and has been the home to the United Nation’s Office at Nairobi (UNON), several embassies, and diplomatic residences. With the expected increase in UN staff, the neighborhood is set to experience heightened demand for both commercial and residential property.
Commercially, the arrival of more UN staff could drive up the demand for conference facilities, new office spaces, and NGO-oriented co-working spaces. Existing property owners and developers with assets in Gigiri are poised to benefit from increased rental yields and occupancy rates, while new investors have been presented with an invaluable incentive to enter the property market or diversify existing portfolios.
For the residential properties, market studies have shown that as the UN expands its footprint in Nairobi, there will be a spillover to nearby areas resulting in UN staff relocating with their families seeking high-end, secure housing upon arriving in the capital. This will result in potential resurgence in demand for diplomatic-grade residences around Gigiri.
Case Study: Two Rivers Social City
Just a 5-minute drive from Gigiri, the Two Rivers Social City is strategically located to benefit directly from increased UN operations in the capital. Designed as a highly secured mixed-use development that integrates residential, office and the home to the largest shopping mall in East Africa, it offers fresh alternative within the diplomatic enclave.
In the recent past, the area has seen:
- 98% occupancy in Riverbank apartments and serviced residences.
- A surge in long-term leases at the Loft Residences from UN and embassy employees and other affiliated organizations
- Higher intake of the office spaces at the Southern Tower and the Northern Tower (TRIFIC) from service providers, legal consultancies and experts aligned with the UN ecosystem.
The development’s proximity to international schools, (SABIS and Aga Khan) as well as recreational amenities, makes it a natural fit for expatriate families and is predicted to benefit highly from the relocation.
Investment Opportunities
With the expected shift and relocation investors, developers and property owners ought to position themselves strategically to fully benefit from it. Some of the opportunities available include:
- Mixed Use and Smart Infrastructure Projects: Projects like the Two Rivers Social City that have integrated the work-live-play ecosystems and sustainable building practices will have a competitive edge, as they appeal to the eco-conscious UN agencies.
- Commercial Developments: The influx of UN expatriates into the capital will create new demand for office spaces, serviced office suites, and diplomatic support facilities.
- Residential Real Estate: The arrival of the UN staff will lead to a surge in demand for furnished apartments, serviced residences, and secure gated communities, especially for the family-oriented employees.
- Public-Private Partnerships: The relocation also presents an opportunity for collaboration between developers, the government, and UN agencies in planning sustainable development, transit solutions and housing for staff.
Conclusively, the UN’s decision to relocate staff and key programs from New York to Nairobi reaffirms the capital’s standing as a diplomatic and operational epicenter for the Global South and redefines the city’s ever evolving real estate market. As the capital strives to adjust to this new global role, it is imperative that the developers, planners, government, and investors respond with vision, strategy, and commitment to an integrated and sustainable urban development.
References
UN Relocates Key Programs to Nairobi in Major Cost-Cutting Move
How ready is Kenya for three more UN offices?
United Nations Office for Project Services to move to Nairobi
UN set to establish three more major offices in Nairobi by end of 2026
