A report by Hass Consult shows the rise in land prices across Nairobi continued to slow in the third quarter of 2025, largely due to a moderation in self-building activities driven by economic pressure.
According to the report released on October 28, the slowdown has prompted developers to maintain a stronger focus on Nairobi suburbs, where land prices have continued to grow, albeit at a slower pace, outpacing the outlying areas.
The Hass Index land price index results for the period July to September 2025 showed that land prices in 14 satellite towns surrounding Nairobi increased by just 0.84 percent in the quarter.
This marginal growth reduced the annual price increase to 6.6 percent for the year ending September.
HASS Report on Land Rates
Sakina Hassanali, Co-CEO and Creative Director at Hass Consult, explained that many satellite areas, including Kitengela, Kiserian, and Athi River, have traditionally been prime locations for middle-class buyers to develop family homes in stages.
“Many of these satellite areas, such as Kiserian, Kitengela, and Athi River, have been prime locations for middle class buyers to develop their own family homes in stages and as incomes allowed,” said Sakina Hassanali, Co-CEO and Creative Director at Hass Consult.
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“But tightening finances are reducing the flow of buyers able to get through the initial entry gate for self-building of a land purchase, despite the far lower and more advantageous prices in the satellite areas.”
Tightening finances are restricting the ability of buyers to complete the initial entry step of land purchase, despite the generally lower and more advantageous prices offered in these areas.
Land Rates in Nairobi
The average price for an acre in the satellite towns stood at Ksh 32.3 million (Sh32.3M) during the third quarter of 2025.
This contrasts with the average price of Ksh 223.9 million per acre recorded across the 18 Nairobi suburbs monitored by the Hass Index.
Within the satellite average, areas like Kiserian (Ksh 13.4M/acre) and Kitengela (Ksh 18.8M/acre) continue to offer the lowest-price access points for self-builders.
Nairobi Suburbs Saw Stronger Price Growth
Land prices across the 18 suburbs rose by 1.22 percent in the third quarter and 6.27 percent over the last year.
According to Hassanali, only areas attracting strong developer demand are currently reporting land price growth.
Spring Valley led the growth in Nairobi, heating up as developers sought large single-home plots to convert into multi-use properties.
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Land in Spring Valley recorded the strongest quarterly increase, up 3.6 percent in the quarter (3.59 percent) and the highest annual increase among suburbs, rising 13.3 percent (13.29 percent) over the year.
Other Satellite Towns
Land prices in Muthaiga, for example, fell by 0.22 percent from June to September, tipping its annual change into a 0.1 percent decline. Ridgeways experienced the lowest annual increase among the suburbs, declining by 0.46 percent over the last year.
Among satellite towns, Juja registered the highest annual price increase at 14.9 percent (14.85 percent), while Mlolongo saw the highest quarterly increase at 3.45 percent.
Kiambu reported the lowest quarterly change, declining 1.94 percent, and Ruaka had the lowest annual change, falling 2.1 percent.
Since December 2007, land values in the satellite towns have increased by 13.23-fold.
Ksh 1 million invested in Nairobi Satellite-14 land at the end of 2007 would have been worth Ksh 13.23 million by September 2025, outperforming Nairobi Suburbs-18 (Ksh 7.40M), bonds (Ksh 4.75M), and property (Ksh 2.98M).
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