The Hass Land price index for the fourth quarter of 2023 showed that the average price of an acre across the City’s suburbs, has grown at the fastest pace since 2015.
In a report on Monday January 5, Hass Consult noted that the quarterly price increased by 3.3percent, the highest rate since the First Quarter of 2015.
This, the report added, offered the best sign yet that the property sector in the City is recovering from the dip occasioned by the Covid-19 pandemic.
“Satellite towns that are served by better access infrastructure along the Thika Road, Mombasa Road and Ngong Road arteries continued with their steady price growth on both quarterly and annual basis, led by Syokimau, Ngong and Ruiru,” said Sakina Hassanali, head of Development Consulting and Research at HassConsult.
New land price data compiled by the realtor showed that the price of an acre in Ngong appreciated by 21.4 percent in 2023 to Sh35 million, while in Thika, an acre rose by 17.8 percent to Sh27.2 million.
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Satellite Town price Increased
In Syokimau, the price of an acre of land appreciated by 15.8 percent to Sh32.7 million in 2023.
In Nairobi’s satellite towns, land prices went up by 3.7 percent in the quarter, the fastest growth since the Second Quarter of 2022.
“On an annual basis, land prices in the suburbs rose by 4.0 percent as satellite towns saw a price gain of 9.3 percent, which was marginally better than the growth of 9.0 percent recorded in 2022,” read the report.
As per the report, growth of land prices in satellite towns has continued to outpace that of suburbs on higher demand as the cost per acre is within reach of more commercial and private developers.
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Hass reports increased land price in Suburbs
Fourteen out of the 18 suburbs recorded positive price movement in the quarter, as Muthaiga, Ridgeways and Loresho stood out in quarterly price growth at 3.7 percent, 3.6 percent, and 3.1 percent respectively.
All 18 Nairobi suburbs recorded higher buying prices, led by Langata, Ridgeways, and Spring Valley, while in the satellite towns, Juja, Kitengela, and Athi River were top performers during the quarter.
“The average price per acre in the suburbs has now crossed the Sh200 million mark, helped by the fast rise of prices in areas such as Langata, Ridgeways, Loresho, Muthangari which offer a mix of affordability, ease of access, and mixed-use zoning,” Hassanali stated.
“Kiambu, which has recently perceived overpricing on high speculation, jumped to the head of the queue in quarterly price growth at 9.4 percent, pointing to renewed demand from investors looking to take advantage of the price stagnation seen in previous months,” noted Hassanali.
