Holiday Home or Investment Property? How to Choose the Right Coastal Apartment in Watamu

Seth Njuki • December 19, 2025

Holiday Home or Investment Property? How to Choose the Right Coastal Apartment in Watamu

Buying property at the Kenyan coast is no longer just about owning a beautiful home by the sea — it’s about making a smart lifestyle and financial decision.

In Watamu, one of Kenya’s most desirable coastal destinations, buyers often face the same question:

Should I buy a holiday home for personal use, or an investment property for rental income?

The good news is that in Watamu, you don’t always have to choose one or the other. In this guide, we break down the differences, what to look for, and how to select a coastal apartment that delivers both lifestyle enjoyment and strong returns.

Understanding the Difference: Holiday Home vs Investment Property

Before choosing, it’s important to understand what typically defines each option.

What Is a Holiday Home?

A holiday home is primarily purchased for:

  • Personal use
  • Seasonal stays
  • Relaxation and lifestyle

Owners may rent it out occasionally, but income is not the main driver.

What Is an Investment Property?

An investment property is purchased with the goal of:

  • Generating consistent rental income
  • Achieving high occupancy
  • Maximizing ROI and long-term value

In Watamu, many buyers now aim for a hybrid approach — a property that can serve as both.

Why Watamu Is Ideal for Both Options

Watamu is uniquely positioned to support dual-purpose properties.

Key Reasons:

  • Strong year-round tourism demand
  • International holidaymakers and long-stay visitors
  • Growing interest from digital nomads
  • Preference for well-designed, private apartments

This means owners can:

  • Use the property personally
  • Rent it out during peak seasons
  • Earn income while retaining lifestyle access

What Holiday Home Buyers Should Prioritize

If lifestyle is your main focus, look for features that enhance comfort and experience.

Must-Have Features:

  • Quiet, secure location
  • Proximity to beaches and restaurants
  • Private outdoor space
  • Natural light and airflow
  • Calm, elegant design

Holiday home buyers value how a space feels, not just how it performs financially.

What Investors Should Prioritize

If rental income is the priority, performance factors matter most.

Smart Investor Checklist:

  • High-demand location
  • Strong architectural appeal
  • Low-maintenance finishes
  • Private pools or terraces
  • Reliable utilities (water, power backup)
  • Amenities that attract short-term guests

In Watamu, properties that combine design + functionality outperform generic apartments.

The Importance of Location in Watamu

Not all locations in Watamu deliver the same results.

Prime Areas Offer:

  • Faster rental bookings
  • Higher nightly rates
  • Better resale value

Properties located along well-connected roads — close to beaches but away from noise — are ideal for both holidaymakers and long-term residents.

This balance is critical for flexible use properties.

Design Matters More Than You Think

Modern renters and buyers are increasingly design-conscious.

Apartments that perform best typically feature:

  • Indoor–outdoor living layouts
  • Natural materials and textures
  • Minimalist, airy interiors
  • Thoughtful use of space

Design influences:

  • Booking decisions
  • Guest reviews
  • Repeat stays
  • Perceived value

Can One Property Serve Both Purposes? Yes — If Chosen Correctly

The best coastal apartments in Watamu are designed to:

  • Feel like a private retreat
  • Function efficiently as a rental
  • Appeal to international guests
  • Remain comfortable for owners

This is where boutique developments outperform larger estates.

The Breeze Point Watamu Residence: Built for Lifestyle and ROI

The Breeze Point Watamu Residence is a prime example of a development designed to satisfy both holiday home buyers and investors.

Not all properties perform equally — especially on the coast.

Why It Works:

  • Boutique-scale residence with limited units
  • Prime location along Jacaranda Road
  • Architecture inspired by Swahili & Lamu design
  • Modern, low-maintenance finishes
  • Private pools and generous outdoor spaces

Apartment Options:

Ground Floor Apartments

  • Private garden & pool
  • Ideal for relaxed living and family stays

First Floor Apartments

  • Rooftop terrace with private pool
  • High appeal for luxury holiday rentals

Owners can:

  • Enjoy personal stays
  • Rent during peak seasons
  • Generate income without compromising comfort

Common Mistakes Buyers Make (And How to Avoid Them)

Mistake 1: Choosing Price Over Quality

Lower-priced properties often lead to higher maintenance and lower rental appeal.

Mistake 2: Ignoring Rental Demand

A beautiful home that renters don’t want is a missed opportunity.

Mistake 3: Overdeveloped Locations

Crowded areas reduce exclusivity and long-term value.

Choosing a well-designed, well-located boutique apartment avoids these issues.

Is Now the Right Time to Buy in Watamu?

Demand for high-quality coastal properties in Watamu continues to grow, while supply remains limited.

Buying early allows:

  • Better unit selection
  • Stronger pricing positions
  • Long-term appreciation
  • Immediate lifestyle access

For many buyers, Watamu offers the rare chance to enjoy the property while it works for you financially.

Final Thoughts: Choosing the Right Coastal Apartment

The ideal property in Watamu is one that:

  • Feels like home
  • Performs as an investment
  • Holds long-term value

By focusing on location, design, amenities, and flexibility, buyers can secure a coastal apartment that delivers on every level.

Explore The Breeze Point Watamu Residence

If you’re considering a holiday home, an investment property, or both, The Breeze Point Watamu Residence offers a carefully balanced opportunity.

Take the next step:

Promotional graphic: Watamu, Kenya, real estate investment guide. Beach, pool, stacks of money, and ROI chart.
By Seth Njuki December 19, 2025
Discover why Watamu is a top destination for property investment in Kenya. Learn about rental demand, ROI potential, and buying opportunities.