Land prices in Nairobi suburbs remained unchanged in the first quarter of 2025 compared to the previous quarter, as property sale prices in the areas contracted for a fifth straight quarter, the latest Hass Consult Indices show.
- •On the contrary, prices of land in satellite towns rose at a higher pace of 2.4% in Q1 2025 compared to 1.9% in the previous quarter.
- •Hass Consult links the consistency in surbubs land prices to areas such as Karen, Gigiri and Spring Valley joining apartment development hotpots.
- •16 of the 18 city suburbs posted positive price movement, led by Spring Valley at 3.7 percent, followed by Karen and Upperhill at 2.9 percent each.
Gigiri and Kileleshwa also outperformed the average growth rate, with price appreciation of 2.8% in each of the suburbs.
“Although suburbs that have potential for multi dweller units remain in good demand and are therefore recording healthy price growth, some of the zones with limits on such developments such as Karen and Gigiri are also reporting improved prices,” Sakina Hassanali, Co-CEO & Creative Director at HassConsult.
The rising prices in these low-density zones shows that developers are taking note of the higher sales price growth for detached houses compared to semi-detached units and apartments.
Previous quarterly price growth leader Parklands saw its growth slow down to 1.1% from 3.4% in the fourth quarter of 2024, showing early signs that developers are keeping an eye on potential oversupply of apartments in the area, and are looking elsewhere for value.
Hass Land price indices for the first quarter of 2025, show land prices in the city’s satellite towns rose at a higher pace of 2.4% compared to 1.9% in the previous quarter.
The resilience in land price growth across Nairobi’s satellite towns was backed by higher demand in Kiserian, Juja and Thika, where prices remain within reach of a wider spectrum of developers and home builders. This saw 13 of the 14 surveyed satellite towns report higher prices in the period, a slight improvement from the previous quarter when 12 out of 14 towns saw their price grow also.
“Price affordability was a factor in the performance of the various satellite towns in land price movement in the quarter, showing rising sensitivity among buyers amid tougher economic conditions as towns with a more affordable price entry point outperformed nearby areas with costlier land,” said Hassanali.
Kiserian, where an acre costs Ksh12.6 million, saw a price growth of 5.0% , compared to nearby Ngong (KES 36.5 million per acre) and Ongata Rongai (KES 28.3 million) whose growth stood at 1.7% and 0.7% respectively.
Similarly, Thika and Juja outperformed Ruiru (2.9%) in price growth, with the latter having a higher acre price at Ksh 36.6 million compared to Thika’s Ksh 30.2 million and Juja’s Ksh 24.2 million.
The only satellite town with a price contraction was Ruaka at -0.1% , with the town also having the costliest acre at Ksh 111.1 million.
