NAIROBI, Kenya May 9-Towns located next to higher learning institutions recorded high land prices in the first quarter of 2022 as investors sought to cash in on the growing student housing demand.
According to the Hass Consult Land Index Q1 2022, land asking prices in Thika, Juja, Ruiru towns increased by 6.3 per cent, 4.6 per cent, and 1.6 per cent respectively in the period as the areas continued to sustain investor demand.
The three towns host a selection of public, private universities such as Kenyatta University, Jomo Kenyatta University of Agriculture and Technology, Zetech University , and other institutions of higher learning where expansion has drawn investors, including private equity firms, who are focusing on student housing.
“Students, the teaching fraternity, and ancillary services providers are looking for quality housing that will also reduce their transportation costs and commuting time. Developers are therefore investing in putting up modern student housing that will cater to this demand which has translated into higher land prices on these strategically located towns that cater to the student ecosystem,” said Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Overall, land prices in satellite towns rose by 2.17 per cent while Nairobi prices remained static at 0.11 per cent.
Muthaiga was the best performing suburb with a 3.11 per cent increase to Sh197.8million per acre while Juja emerged top annually with prices in the town increasing by 16.95 percent at Sh17.4million.
On the tail end Upperhill recorded a 1.5 percent quarterly growth while in the towns Limuru prices cooled by 6.08 percent.
Annually, Donholm slowed by 3.61 percent to Sh68.9million and in the towns Limuru prices dropped by 7.61 percent to Sh21.5million over the same period.
Upperhill had the most expensive land at Sh500 million while Ruaka prices are now at Sh92 million per acre.
