Property owners in Karen neighborhood estates such as Ngong and Langata are capitalizing on its new look as a commercial hub to make money in rental business and house sale.
In the second quarter Survey of 2023, HassConsult notes a migration pattern of urban dwellers to Ngong Town and Langata estate as Karen status as a commercial hub continues to improve.
During the period under review, the sale prices for houses in Langata and Ngong went up 12.8 per cent and 18 per cent respectively in the year running upto June while apartment prices went up by 15.5 per cent and 6.8 per cent in the same period.
“The subsequent effect of the expansion of Ngong road has opened Karen up to a super suburb status whose growth as a commercial node for the surrounding towns is having spill over pricing effects,” said Ms. Sakina Hassanali, Head of Development, Consulting and Research at Hass Consult.
“Ngong and Langata’s expanding infrastructure upgrades as well as their proximity to Karen is contributing to their gradual growth as a residential hub.”
Karen hosts only high value, low density housing but has begun to be established as a commercial centre, thereby rousing the surrounding suburbs to pick up resident communities that require middle market housing.
Substantively in response to this movement, Ngong Town and Ongata Rongai posted strong rental growth rates with Ngong Town posting a house rental price increase of 17.6 per cent in the last year and Ongata Rongai posting a 22 per cent apartment rental price increase in the same period.
The Hass Property price indices for the second quarter of 2023, indicates property prices stagnating at a 0.5 per cent drop in the quarter resulting in a 1.8 per cent drop in the year.
Economic uncertainty pegged to rising costs, prospects of higher taxation and a higher cost of financing has resulted in reduced consumer confidence stalling speculative demand on real estate. During the same period, average property rental pricing went up marginally by 0.1 per cent in the quarter.
This was backed by a renewed demand for rental apartments, that sustained their growth trend on affordability going up 1.8 per cent in the quarter while the demand for houses reduced falling 0.5 per cent in the same period.
Land Price Up Four Times in Ngong Town-Report – Kenyan Wallstreet
