Apartments are a favorite for homeowners in Kenya, KBA report reveals

Apartments in Nairobi

Kenya house prices rose marginally by 1.49% in the Fourth Quarter of 2018, reversing the downward trend that prevailed in the preceding three quarters of the year but the slow pace of price growth will continue to prevail.

According to the Kenya Bankers Association House Price Index (KBA- HPI), “House prices rose by 1.49% in quarter 4 of 2018 representing a 0.14% quarter-on-quarter rise after it’s growth of 1.35% in the previous quarter.”

The modest rise, though a respite of the downward trend in the first half of the year, is a reflection of the general house-price stability and is attributed to the interplay between the supply and demand dynamics.

“Whereas the KBA-HPI shows a 1.49 percent rise in house prices, the interaction of supply and demand dynamics saw homeowners’ preferences significantly tilt.

During the quarter a reversal of preferences saw apartments account for 76.27% of the total number of units sold followed by bungalows and maisonettes at 12.12 and 11.62%  respectively,’’ said KBA Research and Policy Director Mr. Jared Osoro.

Overall, apartments constituted 76% of units offered in the market, followed by bungalows(12.1%) and maisonettes (11.6%).