NAIROBI, Kenya, Jan 30- Nairobi’s Runda Estate is losing its appeal among high-end home buyers who are opting for Ridgeways and Limuru.
Hass Consult Property’s Head of Research Sakina Hassanali says buyers are looking for newer houses that barely need renovation, which is currently not the case with most houses in Runda.
“Some of the people who are seeking to but a house look away from Runda because some of the houses in the area require a lot of investments to keep up as they are either very old, are old fashioned or need more attention that newer places. For instance, some houses in Runda need the owner to have a gardener to tend to the grounds” Hassanali said.
House prices in Runda slumped 1.9 percentage points on the Hass Consult Property index 2019, while Ridgeways and Limuru towns posted increases of 10.8 percent and 9.5 percent respectively.
“Ridgeway suburb and Limuru town proved to be the most resilient in 2019 posting-annual house increases at 10.8 percent and 9.5 percent respectively,” she added.
Parklands seems to also have lost its appeal, recording the highest drop over the year at 5.2 percent.
Property prices in satellite towns such as Mlolongo, Kitengela and Syokimau also dropped by 0.5 percent since investors are now holding off buying decisions due to the challenging economic environment.
“The fall in prices in satellite towns, the first of its kind, shows that investors are holding off buying decisions which is a defensive strategy taken when there is economic uncertainty. This situation can however change if the environment improves going forward,” Hassanali said.
The index also reveals an upcoming trend; dozens of Karen residents are ditching the suburb for more secluded places like Tigoni, Nanyuki, owing to continued commercialism in Karen.
Hassanali says this could be as a result of a variety of developments taking place in the area that has led to an increase in commercial activities, disrupting the original character of the two leafy suburbs.
“Since Karen has started to change, some old time residents are leaving in search of the peace and quiet that is being taken away,” she said.
Overall prices for all properties marginally improved by 1.2 percent over the last quarter.