Land prices in Nairobi’s satellite towns grew at their slowest rate since June 2023, with the average price growth declining to 1.9 per cent in Q4 2024, down from 3.02 per cent in Q3 2024.
This marks the slowest growth rate since June 2023, with the average cost of an acre increasing by only 1.9 per cent, down from 3.02 per cent in the previous quarter, according to the HassConsult Land Price Index for the fourth quarter of 2024.
Nine out of the 14 tracked towns witnessed a deceleration in price growth. Thika and Mlolongo experienced the most significant declines, with growth rates falling from 6.3% and 6.6% in the third quarter to 0.9% and 1.1% respectively.
Nairobi Suburbs Land Price Index
| Suburb | Average Value Per Acre (KES) | Quarter % Change | Annual % Change | 10 Year Change |
| Parklands | 448,700,000 | 3.40% | 10.50% | 1.22 FOLD |
| Upperhill | 522,700,000 | 3.30% | 9.30% | 1.10 FOLD |
| Spring Valley | 278,300,000 | 3.10% | 15.00% | 3.1 FOLD |
| Kileleshwa | 312,300,000 | 3.00% | 7.00% | 1.22 FOLD |
| Lavington | 262,500,000 | 2.80% | 14.40% | 1.27 FOLD |
| Riverside | 340,400,000 | 2.70% | N/A | 1.03 FOLD |
| Langata | 86,800,000 | 1.50% | 8.20% | 1.87 FOLD |
| Kilimani | 410,000,000 | 1.00% | 1.90% | 1.08 FOLD |
| Kitisuru | 98,200,000 | -1.50% | 2.00% | 1.62 FOLD |
Nairobi Satellite Towns Land Price Index
| Town | Average Value Per Acre (KES) | Quarter % Change | Annual % Change | 10 Year Change |
| Kiserian | 49,600,000 | 2.00% | 18.10% | 2.43 FOLD |
| Juja | 35,400,000 | 4.10% | 16.80% | 1.54 FOLD |
| Ruiru | 111,200,000 | 3.20% | 15.80% | 2.46 FOLD |
| Syokimau | 43,700,000 | 3.40% | 15.70% | 1.59 FOLD |
| Thika | 28,900,000 | 0.90% | 6.20% | 2.02 FOLD |
| Kiambu | 23,100,000 | -0.30% | 4.90% | 1.54 FOLD |
| Ngong | 35,900,000 | -0.20% | 2.60% | 2.25 FOLD |
Furthermore, Kiambu and Ngong recorded negative growth.
This slowdown is primarily attributed to a challenging economic climate. Rising interest rates, job losses, and economic uncertainty have impacted the ability of developers to finance land purchases, thus reducing demand and slowing price growth.
“Periods of economic uncertainty and slowing GDP growth can lead to some developers delaying land acquisition decisions, thereby reducing demand and consequently impacting prices,” explained Ms Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
The report also highlighted the waning impact of infrastructure-led price boosts in towns like Thika, Kiserian, Mlolongo, and Syokimau, following significant price jumps in previous quarters.
In contrast, land prices in Nairobi’s suburbs maintained a steady growth rate of 1.7 per cent, slightly higher than the 1.6 per cent growth observed in the third quarter. Parklands, Upperhill, Spring Valley, and Kileleshwa led the price appreciation in the suburbs.