House prices in Nairobi’s satellite towns fell 2.1 per cent in 2019, the first ever drop since 2008, according to data from real estate firm HassConsult showing that landlords are less demanding in response to challenges in the rental market.
“Landlords are becoming less demanding, especially in areas where there is an oversupply of similar units,” said HassConsult Head of Development Consulting and Research Sakina Hassanali.
“When there is an economic slowdown the first people that get hit are the middle class. Satellite towns- where the middleclass reside have therefore seen an immediate shift.”
The 2019 housing and land price survey found that Karen accounted for 31.2 percent of the supply of land advertised for sale in Nairobi suburbs.
Ridgeways and Limuru towns posted increases of 10.8 percent and 9.5 percent respectively.
“Ridgeway suburb and Limuru town proved to be the most resilient in 2019 posting-annual house increases at 10.8 percent and 9.5 percent respectively,” she added.
The Q4 report showed that overall prices for all properties marginally improved by 1.2 per cent over the quarter.