The average value of land in Nairobi’s 18 highest activity suburbs has gone up from KSh 30.3 million in December 2007 to KSh 203.7 million in March 2024.
- The average value of land in 14 highest activity satellite towns has shifted from KSh 2.4 million in December 2007 to KSh 28.8 million in March 2024.
- In the first quarter of 2024, the average value of an acre piece of land in Nairobi’s Upperhill was KSh 480.9 million – the highest among suburb bracket- followed by Westlands area where an acre piece of land averaged at KSh 465.8 million.
- Among Nairobi’s 18 highest activity suburbs, land in Karen remained the lowest, averaging at KSh 66.6 million per acre followed by Langata at KSh 82.3 million, and Ridgeways at an average of KSh 89 million per acre.
During the first quarter of this year, Hass Consult notes that the prices maintained an upward trajectory despite a tough economy and input costs for developers.
“The growth in prices across 17 of 18 suburbs, despite the slowdown in pace in the quarter compared to the last quarter of 2023, shows that the upper end of the market is sustaining demand,” said Sakina Hassanali, Head of Development, Consulting and Research at Hass Consult.
In the towns, Kiserian, Limuru and Ongata Rongai led quarterly price gains at 9.4 per cent, 8.4 per cent and 7.8 per cent, respectively.
“Satellite towns are driving the revival of land as a competitive asset class with the average annual growth of over 10 percent. With interest rates projected by the Central Bank of Kenya to fall in coming months, the stable price growth seen over the last two years should make land even more attractive as an asset,” she added.
Satellite towns are now poised to overtake government Treasury Bills in annual returns. On an annual basis, 9 out of 14 satellite towns made double digit price gains, led by Ongata Rongai at 16 percent. Developers have also shown a preference for areas whose prices are lower than the satellite town average of KSh 28.8 million, as they keep an eye on overall costs due to higher building input prices.
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