Prices of land in Nairobi reached an average price of Ksh 194 million per acre for the first quarter of 2023, the highest rate the market has experienced.
The latest HassConsult index shows that year-on-year growth of land prices in the satellite towns increased by 8.08 per cent compared to a 1.42 per cent annual increase in land prices in the city with similar increases in Nairobi’s satellite towns up by 1.28 per cent over the quarter.
“A renewal of development activity has been the driving reason for land price recovery and 10 out of 18 Nairobi suburbs now have prices above their pre-pandemic rates,” said Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Donholm, Kitisuru, Langata, Loresho, Muthaiga, Nyari, Ridgeways, Runda, Spring Valley, and Westlands suburbs have increased above their pre-pandemic rates.
Despite prices in the above suburbs exceeding their pre-pandemic levels, HassConsult highlights a few pockets of cooling in Kitisuru, Nyari, and Gigiri. These areas, which are highly desirable suburbs for foreign officials and expatriate staff, have experienced a slight dip in land prices.
“These suburbs corrected this quarter after several quarters of heated pricing on the expansion of Kenya’s diplomatic zone,” said Ms Hassanali.
Land prices in Nairobi’s satellite towns increased by 1.28 per cent over the quarter continuing their trend of higher appreciation rates compared to similar parcels in the city.
This is attributed to the towns’ affordability and improved infrastructure, which have made them increasingly attractive to potential investors.
Year-on-year growth shows land prices in the satellite towns increased by 8.08 per cent compared to a 1.42 per cent annual increase in land prices in the city.
The proposal to extend the Standard Gauge Railway to Athi River’s Export Processing Zone has sparked speculation and led to a 6.1 per cent increase in land prices over the quarter.
This growth rate is comparable to Ngong, the best-performing town, which witnessed a 6.2 per cent surge in land prices.
