Land prices in Nairobi suburbs increased by 0.34 per cent and in satellite towns, growth stood at 1.4 per cent for the fourth quarter of 2021 due to the general economic recovery, according to a study conducted by HassConsult.
In Kilimani, prices continue to cool as investors go slow on the area due to uncertainty on whether the present infrastructure will support the new wave of developments the area is now attracting, thus weakening its appeal.
“A few years ago, it was the exception for residential buildings to have a lift but today it is the norm. The new developments are high-density units including studio apartments which is a shift from the ample apartments and detached houses that characterized the suburb a decade ago and it is not clear if the present infrastructure will adequately cater for all stock coming through,” said Ms Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
The area recorded a 0.9 per cent depreciation over the quarter, the third consecutive drop of the year.
On an annual basis, the Kilimani suburb recorded a 1.1 per cent drop.
Spring Valley was the best-performing suburb over the quarter and annually with land prices recording a 5.6 per cent and 10 per cent respective increase.
Donholm had the lowest growth in land prices among the city’s suburbs, recording a 2.7 per cent drop in the last quarter of 2021.
In the towns, Kiserian posted the strongest growth over the quarter and annually with asking prices increasing by 5.2 per cent and 19 per cent respectively.
Kiserian town’s low entry point relative to its peers continues to make it attractive to speculators.
Limuru land prices recorded a 2.34 per cent drop over the quarter while Ruaka saw prices marginally drop by 1.22 per cent.
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