Land prices in Nairobi’s suburbs remained steady in the first quarter of 2025, recording a quarter-on-quarter growth of 1.7%, identical to the rate posted in the previous quarter.
According to Hass Land price indices for the first quarter of 2025, this stability contrasts with the continued contraction in property sale prices across these areas, marking the fifth consecutive quarter of declining property prices.
Nairobi Suburbs Performance
- Overall Growth: The Nairobi Suburbs-18 Land Index rose by 1.7% in Q1 2025, maintaining the same pace as Q4 2024.
- Top Performers: Spring Valley led all suburbs with a 3.7% quarterly increase, followed by Karen and Upperhill at 2.9% each. Gigiri and Kileleshwa also outperformed the average, both registering 2.8% growth. In total, 16 out of 18 suburbs posted positive price movements.
- Suburbs with Slower Growth: Parklands, the previous quarter’s leader, saw its growth decelerate sharply to 1.1% from 3.4% in Q4 2024, indicating developer caution over potential apartment oversupply. Ridgeways recorded the lowest quarterly change at -1.6%.
- Low-Density Zones: Notably, Karen and Gigiri, traditionally low-density zones with restrictions on multi-dweller units also saw strong price growth, reflecting increased developer interest in detached house markets, where sales price growth outpaces that of semi-detached units and apartments.
“Although suburbs that have potential for multi dweller units remain in good demand and are therefore recording healthy price growth, some of the zones with limits on such developments such as Karen and Gigiri are also reporting improved prices,” Sakina Hassanali, Co-CEO & Creative Director at HassConsult.
Suburb Land Price Movements (Q1 2025)
| Suburb | Quarterly Change (%) | Annual Change (%) | Average Price per Acre (KES) |
| Spring Valley | 3.7 | 14.8 | 288.7M |
| Karen | 2.9 | 6.6 | 71.0M |
| Upperhill | 2.9 | 11.8 | 537.8M |
| Gigiri | 2.8 | 4.3 | 250.2M |
| Kileleshwa | 2.8 | 10.2 | 321.2M |
| Parklands | 1.1 | 10.6 | 453.7M |
| Ridgeways | -1.6 | 1.9 | 90.8M |
Source: Hass Land Index Q1 2025
Satellite Towns: Accelerating Growth
Land prices in Nairobi’s satellite towns outpaced the suburbs, rising by 2.4% in Q1 2025 compared to 1.9% in the previous quarter.
This acceleration was driven by robust demand in more affordable towns such as Kiserian, Juja, and Thika, where land remains accessible to a broader range of developers and home builders.
- Number of Towns with Growth: 13 out of 14 surveyed satellite towns recorded price increases, up from 12 in the previous quarter.
- Affordability as a Driver: Towns with lower price entry points outperformed costlier areas, reflecting heightened price sensitivity among buyers amid tougher economic conditions.
Satellite Town Land Price Movements (Q1 2025)
| Town | Quarterly Change (%) | Annual Change (%) | Average Price per Acre (KES) |
| Kiserian | 5 | 13.3 | 12.6M |
| Juja | 4.6 | 13.8 | 24.2M |
| Thika | 4.6 | 16.2 | 30.2M |
| Ruiru | 2.9 | 15.9 | 36.6M |
| Ngong | 1.7 | 4.5 | 36.5M |
| Ongata Rongai | 0.7 | 3.1 | 28.3M |
| Ruaka | -0.1 | 3.5 | 111.1M |
Source: Hass Land Index Q1 2025
- Highest Price Growth: Kiserian led with a 5.0% quarterly increase, attributed to its affordability and improved connectivity. Juja and Thika also posted strong growth, outpacing Ruiru, which, despite a higher price per acre, saw a lower quarterly increase.
- Most Expensive Satellite Town: Ruaka remained the priciest at KES 111.1 million per acre, but was the only town to record a price contraction (-0.1%).
Market Context and Trends
- Suburban Demand: The consistent growth in the suburbs is linked to the emergence of apartment development hotspots in areas like Karen, Gigiri, and Spring Valley. Even zones with restrictions on multi-dweller units are seeing increased developer interest, especially for detached housing.
- Developer Strategy: The slowdown in Parklands’ price growth signals a shift in developer focus as concerns mount over potential apartment oversupply in certain high-density areas.
- Satellite Towns’ Resilience: The satellite towns’ resilience is underpinned by affordability and accessibility, attracting both developers and homebuilders seeking value outside the city’s core.
Investment Perspective
- Long-Term Returns: Since December 2007, land values have increased 7.2-fold in Nairobi suburbs and 12.96-fold in satellite towns, far outpacing returns from property, bonds, savings, or equities over the same period.
- Average Land Prices: As of March 2025, the average land price in Nairobi suburbs stands at KES 217.8 million per acre, while in satellite towns it is KES 31.7 million per acre.
