Nairobi’s property price has registered marginal improvement with property recording only 1.1 per cent increase in Kilimani and Muthaiga suburbs in the third quarter.
According to the Hass property index, Westland showed the strongest performance on an annual basis with prices improving by 7.9 per cent which has been attributed Kenya’s growing market for Meeting, Incentives, Conferences and Exhibition (MICE) niche market followed by Muthaiga at 5.9 per cent and Loresho at 5.5 per cent.
‘’The growth in this niche MICE market is encouraging entrepreneurs to invest in property in the suburbs for letting to attendees of high level conferences who prefer serviced houses and apartment over hotel.’’ Said Hass Consult’s Head of Development Consulting and Research MS Sakina Hassanali.
She also added that Westland is undergoing the initial stages of urban regeneration cycle where urban markets and areas that are populated by high income earners are often over time developed in ways that lead to shift in a mix of population, with middle income earners beginning to move into the area causing flight of the elites to the next up market beauty spot.
However Surburbs like Donholm and Kitengela which are currently experiencing correction posted drops in prices at 0.89 per cent and 1.71 per cent respectively.
Infrastructure has also been cited as a key cause for price increase, ‘’once you see infrastructure going into an area that area is suddenly livable which makes it a lot more valuable than it was before,’’ She said.
The index report also shows that land prices in the capital rose by 0.24 per cent in the second quarter compared to the same period the previous year at 0.4 per cent. Land in Ridgeways recorded the highest price increase of 2.92 per cent while Mlolongo was the best performing satellite town at 3.99 per cent.
Upper hill continues to be the most expensive land at 558.3 Million per acre while Kiserian the least expensive at 7.1 Million per acre.
