Property prices in the Nairobi Metropolitan Area posted their fastest growth in 18 months, according to the Hass Property Price Indices Q2 2025, fueled by rising demand for detached homes amid tightening supply and improving market sentiment.
Sales prices rose 3.75% in the quarter ending June, up from 2.45% in Q1, marking the strongest performance since Q4 2023. On an annual basis, property prices climbed 7.8%, significantly above the 4.9% growth recorded in the 12 months to March 2025.
“Detached house prices grew at their fastest quarterly pace in nine years,” noted Sakina Hassanali, Co-CEO & Creative Director at HassConsult. “Suburbs such as Muthaiga, Karen and Runda—which remain largely exclusive of apartments—reported faster price growth, underscoring the renewed interest in low-density living.”
The detached housing segment, comprised of townhouses and villas, led the market with a 5.0% quarterly price rise and an impressive 10.9% annual increase. Semi-detached houses and apartments trailed with 1.3% and 1.1% quarterly gains, respectively.
“There’s a general lack of supply of detached houses, leading to the increased prices,” Ms. Hassanali added.
Property Shines Against Dimming Investment Alternatives
The Q2 report highlighted the growing competitiveness of property as an investment class. With Treasury bill rates dropping to between 8.1% and 9.7% from highs of 16% a year ago, property—especially detached houses—stands out as a resilient store of value.
Rental Market Contracts Amid Cost Sensitivity
In contrast to sales, the rental market showed signs of stress. Average asking rents contracted by 0.2% in Q2 compared to a 0.3% gain in Q1, reflecting economic pressures such as job losses and stagnant incomes.
“Landlords are increasingly forced to forego rent increases to protect occupancy in a price-sensitive market,” said Ms. Hassanali.
Detached houses posted a 1.6% drop in rental asking prices, while semi-detached units dipped 0.4%. Apartments were the only segment to record growth, rising 2.4% quarterly, driven by high-demand pockets such as Mlolongo, which posted a 4.4% gain.
Despite these segment differences, the higher average rental value of KSh 224,557 per unit for houses compared to KSh 104,794 for apartments dragged down overall rental performance.
Mixed Performance Across Submarkets
| Segment | Quarterly Price Change | Annual Price Change |
|---|---|---|
| Detached Houses | +5.0% | +10.9% |
| Semi-Detached Houses | +1.3% | +2.8% |
| Apartments | +1.1% | +0.7% |
Top Risers: Muthaiga (+3.2% q/q, +13.7% y/y), Tigoni, Ruiru, Kiserian, Kiambu, Langata, Ongata Rongai, Gigiri, Ridgeways.
Weakest Performers: Apartments in Upperhill (-3.0% q/q), Kileleshwa (-12.0% y/y), Westlands (-12.5% y/y).
