Ruaka, a rapidly growing satellite town of Nairobi, has seen its land values surge, surpassing prime suburban areas like Karen, Runda, Ridgeways, Kitisuru, and Langata.
According to Hass Consult’s Q3 Land Price Index, an acre of land in Ruaka now averages Sh110 million, significantly higher than other satellite towns and even Kitisuru, where an acre costs Sh99.7 million.
Nairobi’s Most Expensive Land
- Upperhill: Remains the most expensive area, with an average land price of Sh506 million per acre.
- Westlands: Follows closely at Sh479.6 million per acre.
Driving Factors Behind Rising Land Prices
- Increased Demand for Development: The demand for apartments and mixed-use developments in prime suburbs has driven up land prices.
- Infrastructure Development: Improved infrastructure, such as the Nairobi Expressway, has boosted the appeal of satellite towns like Mlolongo and Thika.
- Economic Recovery: The real estate sector’s recovery from a prolonged slump has contributed to increased land demand.
“The leading suburbs in quarterly land price growth have emerged as the city’s hotspots for apartment and mixed-use developments, hence the demand driven price increase,” said Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Satellite Town Performance
- Mlolongo, Thika, and Kiserian: These towns have seen significant price growth due to factors like improved accessibility, government development plans, and growing demand for residential and commercial properties.
- Syokimau, Limuru, and Mlolongo: These areas have experienced strong annual price growth, making land investment attractive compared to other asset classes like bonds and shares.
Residential Real Estate Market
- Price Appreciation: Residential property prices in Nairobi increased by 0.7% quarter-on-quarter and 8.7% year-on-year in Q3 2024.
- Rental Market: Asking rents decreased slightly quarter-on-quarter but increased year-on-year.
- Suburban Performance: Ridgeways emerged as the top-performing suburb, while Gigiri saw a decline in prices.
- Satellite Town Performance: Juja recorded the highest year-on-year price appreciation, followed by Syokimau.
“Prices are more dynamic in satellite towns compared to suburbs, due to evolving development plans and impact of new infrastructure on buyer behaviour,” Ms Hassanali added.
