Investment opportunities in Watamu, Kilifi North!
Watamu in Kilifi North is one of Kenya’s coastal gems that is growing as a tourism destination and real estate investment hotspot. This article looks at the area’s characteristics, current market trends and infrastructure developments that are shaping its future.
Geography and Demographics.
Watamu is a small coastal town located 105 km north of Mombasa and 15 km south of Malindi on Kenya’s Indian Ocean coast. Situated on a headland between Blue Lagoon and Watamu Bay, this beautiful area has a population of around 30,000 people as of 2020. The town is part of Kilifi North Constituency in Kilifi County.
The coastline has white sandy beaches and offshore coral formations in bays and beaches including Garoda Beach, Turtle Bay, Blue Lagoon Bay, Watamu Bay, Ocean Breeze, Kanani reef and Jacaranda beach. These coastal areas are protected as part of the Watamu Marine National Park, one of the best snorkeling and diving areas in East Africa.
Historical and Cultural Background.
Archaeological evidence shows Watamu has been inhabited since the 13th century. The area is home to the Bajuni people who are descendants of intermarriage between the local Giriama people and Arab traders. In recent years, tribes from inland Kenya including the Luo, Kisii, Kikuyu, Kamba, Kalenjin and Luhyas have migrated to the area to work in the hospitality industry.
Economic Activities.
Tourism and fishing are the main economic activities in Watamu. The town’s economy benefits from the Marine National Park which includes fringing reefs, coral gardens and seagrass beds that provide perfect habitats for marine mammals, turtles and various species of shore birds. The Malindi and Watamu Marine Parks are the oldest in Africa and are famous for their gigantic corals and fish.Beyond tourism, Kilifi North Constituency’s economy also relies on agriculture with cash crops being cashew nuts, sisal, coconut palms and mangoes while banana, cassava, maize, green grams and cow peas are staple crops. Dairy and beef farming also contributes to the local economy.
Real Estate Market Analysis.
Houses & Apartments for Sale in Watamu Beach-House Prices.
The Watamu real estate market has shown great potential with consistent demand for luxury villas, beachfront apartments and vacation homes. According to Kenya Property Centre data early 2025:
Month | Average Price | Maximum Price | Minimum Price |
---|---|---|---|
Mar 2025 | KSh 33,170,000 | KSh 160,000,000 | KSh 25,000,000 |
Feb 2025 | KSh 33,170,000 | KSh 160,000,000 | KSh 25,000,000 |
Jan 2025 | KSh 38,400,000 | KSh 160,000,000 | KSh 25,000,000 |
Dec 2024 | KSh 38,330,000 | KSh 65,000,000 | KSh 25,000,000 |
Nov 2024 | KSh 38,330,000 | KSh 65,000,000 | KSh 25,000,000 |
The property listings show diverse options for buyers:
- Four-bedroom Italian-style houses near Watamu Beach for KES 44,000,000.
- Four-bedroom houses with pool near Turtle Bay for KSh 45,600,000.
- Five-bedroom beachfront villas in North Watamu for up to KSh 133,100,000.
- Six-bedroom modern houses in North Watamu for KSh 53,200,000.
- Three-bedroom houses with beach access in North Watamu for KSh 53,242,000.
Land Prices.
Land prices in Watamu vary depending on location, proximity to the beach and plot size:
Residential Land for Sale in Watamu-Beachfront and Prime Locations.
- 1.5 acres of prime island property in Watamu: KSh 365,000,000.
- 3.2 acres of undeveloped beachfront in North Watamu: KSh 65 million.
- 5.5 acres of beach plot with 250m of ocean frontage: Offers above $550,000.
- 5 acres of walled plot in North Watamu with 90m ocean frontage: €1 million.
- 10 acres of sandy beach land: KSh 300,000,000.
Property For Sale In Watamu-Mid-Range Plots.
- 1 acre at Mida Creek, 5 minutes from Turtle Bay Hotel: KSh 10,000,000.
- 1 acre along Gede-Watamu Road: KSh 6,500,000.
- 2 acre plot on North End of Mida Creek: KSh 20 million.
- Single acre plots in Mida Forest: KSh 20 million per plot.
Vacant Land / Plots for Sale in Watamu -More Affordable Options.
- Quarter acre undeveloped plot: €38,000 to €45,000.
- Eighth acre with ready title deed: KSh 1,500,000.
- 50 by 100 plots near Jacaranda Beach: KSh 750,000 to KSh 800,000.
- 1/8 plot near Jacaranda Hotel: KSh 1,900,000.
Land in Watamu offers great investment opportunities with 12 acres of land with ready title going for approximately KSh 1,200,000 per acre. The prices show a huge premium for beachfront and ocean-view properties compared to inland plots.
Infrastructure Development.
Watamu and the entire Kilifi North Constituency has seen significant infrastructure development in recent years making the area more attractive for residents and investors.
Road Network Upgrades.
The Kenya Urban Rural Authority (KURA) has been working on a critical coastal road connecting Malindi and Watamu. This project includes:
- Construction and asphalting of the coastal road with drainage ditches and pedestrian walkways.
- Development of the stretch from Mawe Lodge to Jacaranda Resort (6 km).
- Recent progress of an additional 800 meters of new road and a kilometer and a half of sidewalk.This road will be a game changer for the area as it will provide a direct link between Malindi and Watamu reducing travel time to approximately 30 minutes without having to use the Malindi-Mombasa highway and turn off at Gede.
Commercial and Public Facilities.
The government has launched the construction of a modern market in Watamu under the Affordable Housing and Markets program, the first of its kind in the region. Key features include:
- Investment of over KSh 50 million.
- Expected to be completed within six months from June 2024.
- Emphasis on inclusive economic development with significant involvement from the local Juakali sector.
There are also plans for similar markets in four other areas across Kilifi County: Ganze, Kaloleni, Kilifi South and Kilifi North.
Housing Developments.
Major housing projects are transforming the landscape:
- Tezo affordable housing project along Kilifi-Malindi Road will deliver 1,000 housing units on 5 acres.
- Plans for 5,000 units across Kilifi County with projects designated for Bofa, Watamu and Mtwapa.
- Private developments like “Bahari Resort” in Watamu which will have 12 exclusive villas to be delivered by August 2026.
Commercial Infrastructure.
Watamu has seen significant growth:
- New shopping malls, supermarkets and specialty shops have opened.
- Diverse dining options from gelaterias to restaurants offering Italian, Swahili and international cuisine.
- Improved digital connectivity with reliable WiFi and fiber connections.
- Kenya Power is working to improve electricity supply.
- Reputable construction companies have entered the market improving building
Conclusion.
Watamu in Kilifi North Constituency is a great case for residence and investment. The area’s natural beauty combined with its rich cultural heritage and strategic location along Kenya’s coast provides a solid foundation for its growing popularity. The real estate market has diverse options in terms of property types and price points to suit various investment budgets.
The ongoing and planned infrastructure developments are notable as they address previous limitations in road network, commercial facilities and housing. These will further boost property values and make the area more accessible and attractive to both local and international buyers.Investors and residents can expect Watamu to continue growing in the next few years as Kenya becomes a tourist destination and Kilifi County implements its development plan. The New York Times listing Kilifi as one of the “52 Places to go in 2025” solidifies the area’s global recognition.
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3. What are the average house prices in Kibarani compared to other coastal areas in Kenya?
4.Are there any upcoming infrastructure projects planned for Dabaso?
5.How does the cost of land in Matsangoni compare to other areas in Kilifi County?
Related
1.What are the current trends in real estate development in Mnarani?
2.How has the infrastructure in Sokoni evolved over the past decade?
3.What are the average house prices in Kibarani compared to other coastal areas in Kenya?
4.Are there any upcoming infrastructure projects planned for Dabaso?
5.How does the cost of land in Matsangoni compare to other areas in Kilifi County?