HassConsult has released the Hass Land price indices for the third quarter of 2024, showing land prices in Nairobi City’s suburbs and satellite towns.
The Hass Land Price Index shows that land prices in Nairobi suburbs rose by 1.6 percent during the period, while prices in Nairobi’s satellite towns rose by 3.02 percent.
Sakina Hassanali, Head of Development Consulting and Research at HassConsult detailed the average value per acre in various estates in Nairobi.
According to the Price Index, the price of land is cheaper in Nairobi Satellite towns compared to the suburbs.
Kiserian tops the list of areas with affordable land prices at Ksh11.8 million followed by Kitengela at Ksh17.3 million.
Athi River comes in third with Ksh20 million followed by Juja and Limuru at Ksh22.2 million and Ksh23.9 million respectively.
Other regions include Ongata Rongai (Ksh27.1 million), Thika (Ksh28.6 million), Tigoni (Ksh33.2 million), Ngong (Ksh36 million) and Ruiru (Ksh34.5 million).
An acre of land costs Ksh43.2 million in Mlolongo, Ksh49.7 million in Kiambu and Ksh110.1 million in Ruaka.
Nairobi Suburbs Land Index
Karen, Kitusuru, Langata, Runda and Ridgeways are among the estates where an acre of land costs less than Ksh100 million in Nairobi suburbs.
The prices in these estates are as follows: Karen (Ksh68.4 million), Langata (Ksh85.5 million), Kitusuru (Ksh99.7 million), Runda (Ksh92.3 million) and Ridgeways (Ksh92 million).
Upper Hill tops the list of estates where land is expensive with Ksh506 million per acre followed by Westlands at Ksh479.6 million.
Parklands and Kilimani are next with prices of Ksh434.2 million and Ksh406.1 million respectively.
Prices of land in other regions are as follows: Girigir (Ksh245.7 million0), Kileleshwa (Ksh303.2 million), Lavington (Ksh255.3 million) and Loresho (Ksh110 million.
An acre of land costs Ksh234.3 million in Muthaiga, Ksh114.7 million in Nyari, Ksh331.5 million in Riverside and Ksh270 million in Spring Valley.
Also Read: Sonko Speaks on Owning Title Deeds of Lands Meant for Ruto Projects
Suburbs Increase in Prices
Hassanali said there was growth in prices supported by rising land demand for new developments.
Parklands led the market with land price increases of 3.4 percent to average Ksh434.2 million per acre.
Langata and Kileleshwa also made a strong showing with gains of 2.9 percent and 2.8 percent respectively.
According to Hassanali, this indicates that demand is shifting back to areas that can support multi-dweller units in a market that still remains price sensitive in a tough economy.
“The leading suburbs in quarterly land price growth have emerged as the city’s hotspots for apartment and mixed-use developments, hence the demand driven price increase,” Hassanali said.
Satellite Towns
In Nairobi’s satellite towns, Mlolongo (6.6 percent), Thika (6.3 percent) and Kiserian (4.7 percent), recorded impressive price growth in the second quarter, driven by a mix of attractive pricing levels and upcoming infrastructure development.
Mlolongo continued to enjoy the benefit of easier access to the city via the Nairobi Expressway, with the areas mix of residential and land industrial developments helping sustain demand for land.
In Thika, the Kiambu County government’s recent announcement of a new masterplan to transform the town into an industrial smart-city has seen developers race to take up land in anticipation of a potential jump in demand for housing and commercial outlets in the area.
Also Read: Explore Home Types, Prices & Payment Plans Under the Affordable Housing Plan
The county plan envisages additional roads that will open up the outlying areas of Thika for commercial development, creating new jobs that will attract demand for residential units.
“Prices are more dynamic in satellite towns compared to suburbs, due to evolving development plans and impact of new infrastructure on buyer behavior,”Hassanali added.
Land in the Nairobi satellite towns has also been growing at an annual rate that rivals the returns from other competing asset classes such as bonds and shares at the Nairobi Securities Exchange (NSE).
Prices in Syokimau, Limuru and Mlolongo went up by between 18 and 18.5 percent in the year to September with bond returns expected to fall as the Central Bank of Kenya (CBK) cuts its rate, the attractiveness of land as an investment asset will continue to increase.
Follow our WhatsApp Channel and join our WhatsApp Group for real-time news updates.
