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Land prices mildly soften as Covid-19 uncertainty continues to affect Investor demand

NAIROBI, Kenya, Aug 12- Land prices in Nairobi suburbs decreased in the second quarter of the year, new data has shown.

The data by Hass consult reveals that the 0.7 percent decrease witnessed in the area saw Parklands suburb posting a 2.74 percent drop in land prices while in the satellite towns Limuru registered a 3.9 per cent drop.

However, Donholm suburb registered the highest quarterly increase in land price at 2.76 percent while Ongata Rongai was tops in the towns at 1.26 percent.

HassConsult notes that the mild softening despite the COVID-19 pandemic which continues to affect the wider economy is a reflection that investors still view land as a resilient asset class over the long term.

“COVID-19 pandemic continues to disrupt the economy and as such investor interest has waned over the quarter but we are yet to see ‘fire sales’ on land as this asset class is still seen as the most resilient over the long term,” said Head of Development Consulting and Research at HassConsult Sakina Hassanali.

“The pandemic has caused an economic slowdown, which could potentially further see adverse activity in the sector that has been resilient,” she added.

On an annual basis Muthaiga recorded the highest gain among the suburbs at 4.5 per cent while in towns Ruiru town recorded the highest increase in land prices at 5.16 per cent.

Upperhill has the most expensive land at Sh525.7 million per acre while in the satellite towns an acre goes in Ruaka is now commanding a Sh89.8 million asking price.

Gigiri, saw a 1.21 per cent rise to Sh233.6 million while land prices in Runda and Kitisuru rose 0.23 per cent and 0.56 respectively.

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