Home prices in Nairobi Metropolitan Area (NMA) and land costs in satellite towns around the capital have risen to new highs on the back of renewed demand from buyers according to HassConsult data.
Land price indices for the first quarter of 2022, prices in the towns rose by 2.17 per cent while Nairobi prices remained static at 0.11 per cent.
Subsequently, the price of an average house within the city rose 6.8 per cent in the year to March compared to a drop of 1.8 per cent in the same period a year earlier.
This is the fastest increase since 2018 when the growth stood at 8.5 per cent.
“Over the quarter, Thika, Juja, and Ruiru towns continued to sustain investor demand, which was reflected in land asking prices increasing by 6.3 per cent, 4.6 per cent, and 1.6 per cent respectively,” said Sakina Hassanali, the head of development consulting and research at HassConsult.
Thika was additionally the best performing town over the first three months of the year.
Overall, Muthaiga was the best performing suburb at 3.11 percent while Juja emerged top annually with prices in the town increasing by 16.95 per cent.
On the tail end, Upperhill recorded a 1.5 per cent quarterly growth while in the town of Limuru prices cooled by 6.08 per cent. Annually Donholm slowed by 3.61 per cent and in the town of Limuru prices dropped by 7.61 per cent over the same period.
Upperhill had the most expensive land at Ksh500 million while Ruaka prices are now at Ksh92 million per acre.