NAIROBI, Kenya, NOV 24 – If you are looking to buy land in the outskirts of Nairobi, you might consider trying Oletepesi where an 1/8th of an acre costs Sh150, 000.
This is according to a new report by Property Reality Company that indicate Oletepesi as the cheapest options followed by Kisamis in Kiserian at Sh220, 000 that is 74 kilometres to Nairobi.
The report indicates that Ruaka is the most expensive place to buy land with a 1/8th going for Sh18 millon, a 125 per cent rise from Sh8 million last year.
Ruaka is followed by Kiambu where a 1/8th acre piece of land is going for Sh3.9 million while Kikuyu, a 1/8th of an acre is going for Sh3.6 million.
At Konza a 1/8th piece of land is going for Sh400, 000, Juja Sh1.2 million, Ruiru Sh1.6 million, Thika Sh1.4 million.
Land prices in Kenya are set to rise further as the 2016 banking law that caps interest rates at 4 per cent above Central Bank’s lending rate takes effect.
Property Reality Company General Manager Abraham Muriithi says the new banking law will reduce unsecured lending and increase secured lending with land being the second biggest asset in the country after cash.
Muriithi says the demand for land will continue to rise with interests rates coming down and secured lending going up.
“Demand for land is constantly growing as population increases leading to land appreciation, government investment in road networks are also a contributing factor to increase in land prices,” Muriithi told Capital FM Business.
He says Banks will continue to be the biggest lenders to Land buyers going forward.