NAIROBI, Kenya, July 30 – Land prices in Nairobi’s satellite towns recorded double-digit growth in the last year, outperforming suburb areas.
The latest Q2 HassConsult, a real estate firm, Land Price Index shows that an acre of land in Juja grew by 20.1 percent to Sh21.7 million.
It was followed by Kiserian, which expanded by 15.3 percent to Sh11.3 million, Syokimau by 15.2 percent to Sh34.9 million, Ruaka by 14.3 percent to Sh111 million, and Ruiru by 14.1 percent to Sh32.9 million.
Others are Ongata Rongai 14 percent to Sh26.7 million, Kitengela 13.3 percent to Sh17.2 million, Limuru 11.9 percent to Sh23.4 million, Mlolongo 11.6 percent to Sh40.6 million, and Kiambu 10.7 percent to Sh48.7 million.
However, only two suburb areas of Nairobi posted double-digit growths in land prices, such as Spring Valley (11.9 percent to Sh264.8 million) and Lavington (10.3% to Sh249 million).
Muthaiga posted a 9.2 percent rise to Sh232.8 million, Ridgeways 8.8 percent to Sh90.6 million, and Langata 7 percent to Sh83.2 million, among others.
“Satellite towns are driving the revival of land as a competitive asset class with the average annual growth of over 10 percent. With interest rates projected by the Central Bank of Kenya to fall in coming months, the stable price growth seen over the last two years should make land even more attractive as an asset,” Sakina Hassanali, Head of Development, Consulting, and Research at Hass Consult, said.
According to Hass Consult, satellite town could overtake government Treasury bills, whose annual return currently stands at about 16 percent.
“Satellite towns are driving the revival of land as a competitive asset class with the average annual growth of over 10 percent,” she added.
“With interest rates projected by the Central Bank of Kenya to fall in coming months, the stable price growth seen over the last two years should make land even more attractive as an asset.”
House sale prices in satellite areas also grew the fastest, with Juja at the fore-front with an annual growth of 13.1 percent, Athi River 12 percent, and Ongata Rongai 10.4 percent. Rental price rise was also the highest in Athi River with 16.2 percent, followed by Ongata Rongai at 16.5 percent and Kitengela at 11.8 percent.
Apartment sale price in satellite town was also highest in Thika (11.7 percent), Mlolongo (11.2 percent), and Ongata Rongai (8 percent). Rental prices also expanded in Kitengela (12.4 percent) and Thika (9.2 percent).
In terms of suburb areas, house prices grew the most in Kilimani (9.3 percent), Nyari Estate (7.6 percent), and Langata (7.9 percent). Rental prices were also highest in Westlands (12 percent) and Loresho (10.3 percent).
Apartment price sales were highest in Kilimani at 7.7 percent and Parklands at 5.4 percent. Rental prices were high in Kileleshwa (14.1 percent) and Westalands (13 percent).
