Land prices in Nairobi suburbs experienced a modest quarter-on-quarter (q/q) increase of 1.3% compared to Q1’2023, according to Hass Consult’s Land Price Index report.
This represents a more significant rise on a year-on-year (y/y) basis, at 5.0%, compared to 1.4% in Q1 2023.
Similarly, Nairobi’s satellite towns saw more robust y/y growth of 11.2% compared to 8.1% in Q1 2023, with q/q prices rising 3.0%.
Ms Sakina Hassanali, Head of Development, Consulting and Research at Hass Consult, says the continued market improvement suggests the sector’s resilience, fueled by demand for land in areas supporting the rapidly growing urban towns and Nairobi’s central business district.
“The growth in prices across 17 of 18 suburbs, despite the slowdown in pace in the quarter compared to the last quarter of 2023, shows that the upper end of the market is sustaining demand,” said Sakina.
Suburban Standouts
Lang’ata emerged as the top performer among Nairobi suburbs with a y/y price increase of 10.1%.
Suburban Correction
Kileleshwa witnessed the highest y/y price correction (-1.5%) compared to other suburbs. This is likely due to buyer preference for neighbouring Kilimani and Lavington, which offer many amenities.
Satellite Towns
Ongata Rongai was the best-performing satellite town, with a 16.0% year-over-year capital appreciation. Factors contributing to this growth include affordability and its strategic location in the Nairobi CBD and other urban areas.
Limuru witnessed the lowest y/y price appreciation (4.9%) among satellite towns. This might be due to increased competition from neighbouring areas closer to the CBD and other urban centres.
“Satellite towns are driving the revival of land as a competitive asset class with an average annual growth of over 10 per cent. With interest rates projected by the Central Bank of Kenya to fall in the coming months, the stable price growth seen over the last two years should make land even more attractive as an asset,” she added.
