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Slum Real Estate: The Low-Quality High-Price Puzzle in Nairobi's Slum Rental Market and its Implications for Theory and Practice

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  • Gulyani, Sumila
  • Talukdar, Debabrata

Abstract

Summary This study of 1755 households in Nairobi's slums challenges the conventional belief that slums offer low-quality low-cost shelter to a population that cannot afford better standards. In Nairobi, slums provide low-quality but high-cost shelter. Although slum residents pay millions of dollars in rents annually, and better quality units command higher rents, very little is being re-invested to upgrade quality. To resolve the challenge that the Nairobi puzzle poses for theory and practice, we develop a new analytical framework for understanding quality of living conditions. Improving conditions in Nairobi's slums requires, we argue, two simultaneous interventions: alteration of the tenure mix to enhance owner occupancy and infrastructure investment.

Suggested Citation

  • Gulyani, Sumila & Talukdar, Debabrata, 2008. "Slum Real Estate: The Low-Quality High-Price Puzzle in Nairobi's Slum Rental Market and its Implications for Theory and Practice," World Development, Elsevier, vol. 36(10), pages 1916-1937, October.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:10:p:1916-1937
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    1. Faranak Miraftab, 1997. "Revisiting Informal‐Sector Home Ownership: The Relevance of Household Composition for Housing Options of the Poor," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 21(2), pages 303-322, June.
    2. Omar M. Razzaz, 1993. "Examining Property Rights and Investment in Informal Settlements: The Case of Jordan," Land Economics, University of Wisconsin Press, vol. 69(4), pages 341-355.
    3. Amis, Philip, 1984. "Squatters or tenants: the commercialization of unauthorized housing in Nairobi," World Development, Elsevier, vol. 12(1), pages 87-96, January.
    4. World Bank, 2003. "Kenya : A Policy Agenda to Restore Growth," World Bank Publications - Reports 14363, The World Bank Group.
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