Landlords are increasingly holding off on raising rent prices in response to a more cautious tenant market, according to Property Price Index for the second quarter of 2025.
- •The report by HassConsult reveals that while Nairobi’s property sales market is seeing its fastest growth in one-and-a-half years, the rental market is showing signs of strain due to economic pressures.
- •Property sales prices rose by 3.75 percent in Q2 2025, up from 2.45 percent in Q1, driven largely by strong demand for standalone units.
- •Overall rental prices contracted by 0.2% in Q2, reversing a 0.3% gain in Q1.
“The detached housing segment comprising townhouses and villas recorded a 5 percent price increase, the highest quarterly growth in nine years,” said Sakina Hassanali, Co-CEO & Creative Director at HassConsult. “Suburbs dominated by standalone units, such as Muthaiga, Karen and Runda, are leading this surge as supply remains constrained.”
This sharp growth is making property a more attractive investment, with detached homes registering a 10.9% annual price increase—comfortably outpacing returns from government Treasury bills, which have dropped to 8.1–9.7%, down from 16% a year earlier.
Houses saw the steepest drop, with asking rents falling 1.3%, while apartment rents grew by 2.4%. The average monthly rent for houses stands at Ksh224,557, significantly higher than Ksh104,794 for apartments—causing the overall rental index to decline.
“Landlords are therefore increasingly forced to forego an increase in rent prices in order to protect occupancy in a price sensitive market,” Ms. Hassanali added, citing ongoing job losses and stagnant salaries as key factors weighing on tenants’ ability to absorb higher costs.
Houses in areas like Tigoni, Ruiru, Kiserian, Kiambu, Langata, Ongata Rongai, Gigiri, and Ridgeways posted price gains exceeding three percent. In contrast, apartments in Upperhill, Kileleshwa, and Westlands saw rent price declines ranging from 2.0 to 4.6 percent.
