Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Sh1m invested in land around Nairobi 10-yrs ago is now worth Sh8.5m – Hass index

Nairobi satellite towns have experienced exponential growth driven by housing demand/File

NAIROBI, Kenya, Jan 24 –  If you bought land around Nairobi for Sh1m in 2007, the value has now grown eight times. 

This is according to the HassConsult Land Price Index Quarter Four 2018 report that lists 14 satellite towns that have multiplied in land value over the last decade.

The Nairobi Satellite towns include Athi River, Juja, Mlolongo, Limuru, Kitengela, Ngong, Ongata Rongai, Ruaka, Ruiru, Syokimau, Thika, Tigoni, Kiserian and Kiambu.

According to the report, if you invested the same Sh1 million in land in Nairobi Suburbs you would be worth Sh6.3 million, with the suburbs being Kilimani, Kitusuru, Upperhill, Westlands, Runda, Spring Valley, Nyari, Muthaiga, Kileleshwa, Karen, Gigiri, Eastleigh, Donholm, Loresho, Ridgeways, Parklands and Langata.

The same amount invested in property such us rentals, value has gone up to Sh2.47 million, while bonds and savings would have given you a return of Sh2.54 million and Sh1.31 million respectively but lost Sh480,000 if you invested in equities.

HassConsult Head of Development Sakina Hassanali says land in Nairobi has appreciated by 700 percent in the last ten years outperforming global asset classes that include both Gold and Oil.

“Globally commodities are falling while and prices in Kenya continue to rise on average of  70 percent per year, compared to 50 to 20 percent in 10 year for other commodities. Going forward, Land will continue to outperform commodities as the government continue to invest in infrastructure throughout the country,” she said.

Gold prices went up by 155 percent in the last decade, live cattle by 127 percent while crude oil was the worst performing in the period increasing by 56.6 percent in value.

“Overall the market for land is becoming more sophisticated. Where change is underway, the returns remain outstanding for any asset class, but in areas that are now more fully developed, often a high density, prices are now more static,” said Hasannali.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...