Land sellers in Ngong Town are smiling all the way to the bank as prices in the town goes up four times compared to the average satellite towns in Nairobi.
In its second quarter land survey, HassConsult notes land prices in other satellite towns around the city such as Kiambu, Kitengela, Kiserian, Mlolongo, Limuru, Ongata Rongai, Tigoni and Thika among others recorded minimal increase of just 1.2 per cent and 5.1 per cent in the year.
Ngong Town, however, bucked the trend with bullish land price increases over the year to June 2023 of 20.7 per cent, four times higher than the average satellite town increases across the tracked towns,” said Sakina Hassanali, Head of Development Consulting & Research.
“The Ngong-Kiserian-Isinya road construction, formerly a rough road, now seamlessly connects the three towns. Ngong residents have less traffic to contend with when travelling to and from work thanks to the expansion of Ngong Road, and the Expansion of the Ngong- Kibiko-Suswa Bypass opening up Kibiko area,” she said.
“The emergence of Karen into a commercial node further supports the rise of Ngong which has yet to show signs of slowing down.”
The survey for the second quarter of 2023, indicates that land prices for Nairobi’s 18 suburbs stagnated as general demand slowed down in these areas, declining by 0.1per cent in the quarter but growing 1.2 per cent in year.
The areas of Spring Valley, Donholm, Loresho and Langata sustained the market through increases of 2.1 per cent, 2.2 per cent, 2.5 per cent and 3.9 per cent respectively.
Land price increases were witnessed in city suburbs that had low rigidity of traditionally allowable development densities.
“Land pricing is a function of its development potential. Therefore, land in areas with strict development density guidelines tend to have a price ceiling while land in areas that are subject to less rigidity around the densities tend to increase in pricing in tandem with the approved density.” said Hassanali.
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