At Ksh 23,400, the average asking rents for apartments in Thika makes the satellite town the most affordable relative to other towns.
Demand for low middle-income housing in Nairobi Metropolitan has increased in the satellite towns as tenants opt for cheaper units, according to HassConsult, a Real estate firm in Kenya.
The Hass Property House Index for the third quarter of 2019 found out that satellite towns with newly finished modern units, but with more affordable asking prices are ‘favourite for bargain hunters who led to increased asking prices.’
Thika Town Records Double-Digit Growth
Thika emerged as a star performer among Nairobi’s satellite towns recording double-digit growth in apartment rents on an annual basis. The town saw a 1.3 percent rise in asking prices in the quarter.
“Asking rents for apartments in Thika increased by 13.3 percent on an annual basis which is the strongest growth in the satellite towns while Tigoni recorded the strongest growth for house rents over the quarter at 3.5 percent.
In the index, the overall asking rents dropped by 0.9 percent over the quarter but marginally increased by 0.8 percent on an annual basis, HassConsult said. On the sales side, asking prices marginally rose by 0.9 percent in the quarter led by the semidetached housing segment which increased by 3.4 percent over the period.
“Asking rents for apartments may cost as little as Ksh 23,400 and this bodes well for many tenants who are now preferring affordable units,” said Ms. Sakina Hassanali, Head of Research and Marketing at HassConsult.
“Notably, as the cost of living soars, the lower middle class is opting to pay slightly more in transport but less in rents,” said Sakina.
Kiserian recorded the highest drop over the quarter with rents reducing by 4.6 percent while Athi River recorded the lowest annual growth rate for houses at 4.1percent.
Parklands was the best performing suburb with rents increasing y 1.9 percent over the quarter and 9.3percent annually. Loresho recorded a 2.7 percent drop over the period and 3.5percent ove the year.