A real estate report by Knight Frank has revealed an increase in the uptake of office spaces in the first half of 2024.
In the report released in September 2024, many companies were returning to physical offices, an indication that flexible working models such as working from home were not becoming as attractive as expected.
The report attributed the trend to three main factors including enhanced oversight of the employees.
Other factors that have made companies opt for physical office spaces include better productivity from employees and ease of coordination of duties within the organisation.
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"The trend towards returning to physical offices has been prominent in the first half of 2024, potentially driving the higher occupancy rates (77.2% as of June 2024, up from 76.5% at the end of 2023)," read the report in part.
"Most organisations favour traditional office settings over flexible workspaces, motivated by improved oversight, team coordination, and enhanced productivity."
Working from home was a model many organisations adopted during the 2020 pandemic owing to various health guidelines such as social distancing.
Meanwhile, as a result of the increased occupancy, many real estate developers are setting up various office spaces within the country, especially in Nairobi.
Some of the major office space projects being undertaken include Mandrake (Westlands), Purple Tower (Mombasa Road), The Atrium (Westlands), and Highway Heights (Kilimani). The projects are set to be completed in 2024.
"Despite an oversupply, monthly prime office rents have remained steady at US$ 13 (Sh1,600) per square meter," Kight Frank added in its report.
