NAIROBI, Kenya, Jul 24 – Property prices in Nairobi continue to reel from slow economic growth that has seen prices reduce by 3 percent in the second quarter of the year.
According to HassConsult, slowed growth in the sector has reduced liquidity in the market and in the process made developers cut prices which has presented opportunities for investors.
Head of Development Consulting and Research Sakina Hassanali says developers are offering generous terms which continue to suppress prices and rents.
She adds that investors are buying properties at discounted prices, confident that once the economy picks up there will be liquidity which will be reflected in the property market through increased prices.
The quarterly price deductions were led by Juja with houses in the satellite town dropping by 4.1 per cent.
Athi River had the best property market with apartment prices in the area increasing by 2.8 per cent over the same period.
“Rents dropped by 1.9 per cent in the quarter led by the detached housing segment which dropped by 3.2 per cent over the period while apartment rentals held up at an increase of 0.4 per cent. Additionally, Langata Apartments recorded the highest quarterly increase in asking rents at 2.5 per cent over the quarter while Athi River Houses recorded the biggest drop at 3.9 per cent,” says the report by the firm.
On an annual basis Nyari was the best performing suburb with houses in the area increasing by 13.2 per cent while at the tail end was Kilimani with apartments in the area dropping by 4 per cent.
On the letting front, asking rents dropped by 1.9 per cent in the quarter led by the detached housing segment which dropped by 3.2 per cent over the period.
Langata recorded the highest quarterly increase in asking rents at 2.5 per cent over the quarter while Athi River recorded the biggest drop at 3.9 per cent.