The latest report by real estate firm, Hass Consult, has revealed a rise in prices of land in Nairobi satellite towns, citing reasons behind the price surge of land in towns that border the capital.
According to the report, the satellite towns include Athi River, Juja, Ruiru, Thika, Limuru and Mlolongo.
The report indicated that the prices of real estate in Nairobi’s satellite towns rose by up to 2.7 percent in the third quarter of 2023.
Additionally, it was revealed that the jump in prices of real estate stood at 6.3 percent annually.
“The growth in price of land in satellite towns was almost 7-fold that of land in the city,” the Hass Consult report cited.
Notably, the real estate firm explained that the increase in prices was bolstered by improved infrastructure.
Reasons for land prices surge in Nairobi
Further, the firm noted that the improved infrastructure has benefited the satellite towns by opening them up to a wider demand base.
“Improved road infrastructure has maintained price growth in Ngong, Mlolongo, Athi River Thika and Syokimau by attracting both commercial and residential developers to the satellite towns with the benefit of easing the strain of congestion in the city while providing more affordable housing solutions on the city fringe,” said Sakina Hassanali, Head of Development Consulting and Research at Hass Consult.
Likewise, Lan’gata remained the suburb with the highest real estate price growth.
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At the same time, the real estate firm said prices of land in Lan’gata had shot up because of the higher density development potential and easy access to major economic nodes such as the Central Business District (CBD), Upper hill and Mombasa Road.
Additionally, it was noted that in comparison to neighboring suburbs, the land price per acre in Lan’gata was lower.
Other satellite towns with high land prices
Ongata Rongai was a front runner in quarterly price growth at 8.2 percent, displacing Thika which was cited as highest in price growth of land as of the quarter two report by Hass Consult.
On this, the company noted that the price growth was due to the anticipation by developers of improved access due to the resumption of the dualling of the Bomas-Rongai-Kiserian road.
Additionally, Ngong had the highest increase at 21.3 percent over the year to September 2023, followed by Thika at 18 percent and Athi River at 13.5 percent.
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In general, the prices of real estate in Nairobi’s suburbs increased by 0.4 percent in the quarter and by 0.8 percent in the year.
“Land in the city showed signs of price recovery with only three out of the eighteen suburbs witnessing a price fall in quarter three, compared to fourteen in the previous quarter.
Recovery of land prices is heavily attributed to the resurgence of development activity post covid,” the Hass Consult report cited.
