The Hass Land price index for the fourth quarter of 2023 reveals that the average price of an acre across Nairobi’s suburbs has grown at the fastest pace since 2015.
This surge in property prices signals a robust recovery from the impact of the COVID-19 pandemic.
Key highlights
- Quarterly Price Increase: The 3.3 per cent quarterly price increase is the highest since the First Quarter of 2015. This positive trend indicates a rebound in the real estate sector.
- Suburbs Performance: Fourteen out of the 18 suburbs experienced positive price movement during the quarter. Notably, Muthaiga, Ridgeways, and Loresho stood out with quarterly price growth rates of 3.7 per cent, 3.6 per cent, and 3.1 per cent, respectively.
- Average Price per Acre: The average price per acre in the suburbs has crossed the Ksh200 million mark. This milestone is attributed to rising prices in areas like Langata, Ridgeways, Loresho, and Muthangari, which offer a blend of affordability, accessibility, and mixed-use zoning.
- Satellite Towns: In Nairobi’s satellite towns, prices surged by 3.7 per cent during the quarter, marking the fastest growth since the Second Quarter of 2022. These towns, served by improved access infrastructure along Thika Road, Mombasa Road, and Ngong Road, maintained steady price growth. Syokimau, Ngong, and Ruiru led the way.
- Kiambu’s Remarkable Growth: Kiambu, previously perceived as overpriced due to speculation, experienced a remarkable 9.4 per cent quarterly price growth. This surge reflects renewed investor interest, capitalizing on the price stagnation observed in previous months.
- Annual Trends: On an annual basis, land prices in the suburbs rose by 4.0 per cent, while satellite towns achieved a 9.3 per cent price gain—slightly better than the 9.0 per cent growth recorded in 2022.
“Instructively also, the average price per acre in the suburbs has now crossed the Sh200 million mark, helped by fast rise of prices in areas such as Langata, Ridgeways, Loresho, Muthangari, which offer a mix of affordability, ease of access and mixed use zoning,” said Ms Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
The demand for land in satellite towns continues to outpace that of suburbs, driven by accessibility and favourable costs for commercial and private developers.
