Land prices across Nairobi continued to decelerate in the third quarter of 2025, according to the latest Hass Consult Land Price Index.
The slowdown is largely attributed to a decline in self-building activity amid tightening economic conditions.
“Many of these satellite areas, such as Kiserian, Kitengela, and Athi River, have been prime locations for middle-class buyers to develop their own family homes in stages and as incomes allowed,” said Sakina Hassanali, Co-CEO and Creative Director at Hass Consult.
Suburbs Outpace Satellite Towns in Land Price Growth
While developers maintain interest in Nairobi’s suburbs, growth in satellite towns has been more subdued. From July to September 2025:
- Satellite towns saw land prices rise by just 0.84%, reducing the annual increase to 6.6%
- Nairobi suburbs recorded a 1.22% quarterly increase and 6.27% annual growth
Spring Valley led the suburbs with a 3.6% quarterly rise and 13.3% annual increase, driven by demand for large plots suitable for multi-use development.
Land Price Snapshot – Q3 2025
| Location | Price per Acre (Ksh) | Quarterly Change | Annual Change |
|---|---|---|---|
| Nairobi Suburbs Avg | 223.9M | +1.22% | +6.27% |
| Satellite Towns Avg | 32.3M | +0.84% | +6.6% |
| Spring Valley | — | +3.6% | +13.3% |
| Juja | — | — | +14.9% |
| Mlolongo | — | +3.45% | — |
| Kiambu | — | -1.94% | — |
| Ruaka | — | — | -2.1% |
Sources: Hass Consult Q3 2025 Land Index
Long-Term Returns Favour Satellite Towns
Since December 2007, land values in satellite towns have surged 13.23-fold, outperforming:
- Nairobi Suburbs: 7.4-fold
- Bonds: 4.75-fold
- Property: 2.98-fold
A Ksh 1 million investment in satellite land in 2007 would be worth Ksh 13.23 million by September 2025.
Rental Market Sees Decline Across Nairobi
Rental prices fell by 1.6% in Q3 and 1.3% year-on-year, driven by reduced demand for detached homes and the exit of expatriate tenants.
“Rental prices… are being driven by changes in the detached house market, where the ending of large aid flows into the country have prompted expatriate departures,” the report noted.
Nairobi Estates with Declining Rents
| Estate | Property Type | Annual Rent Change |
|---|---|---|
| Muthaiga | Houses | -8.1% |
| Nyari Estate | Houses | -5.3% |
| Westlands | Apartments | -4.6% |
| Upper Hill | Apartments | -2.7% |
| Kileleshwa | Apartments | -3.1% |
| Kilimani | All Houses | -1.7% |
Satellite Towns with Rent Drops
| Town | Property Type | Annual Rent Change |
|---|---|---|
| Athi River | Houses | -1.8% |
| Kiambu | Apartments | -1.5% |
| Ongata Rongai | Apartments | -4.4% |
Detached House Prices Drive Property Market Growth
Despite subdued demand, property prices rose 1.1% in Q3 and 8.2% year-on-year. Detached houses led the surge with an 11.3% annual increase, especially in:
- Nairobi suburbs: Runda, Ridgeways, Loresho, Lavington, Karen, Muthaiga
- Satellite towns: Athi River, Ruiru, Tigoni, Juja, Kiserian
“All segments of the market delivered sales price growth… but it was a subdued quarter overall, as middle-class incomes remained under pressure,” Hassanali added.
