Rental prices in several Nairobi estates and nearby satellite towns have declined in 2025, offering some relief to tenants facing high living costs.
According to the Hass Property Index for the third quarter of 2025, overall rents fell by 1.6% between June and September and by 1.3% over the past year, signaling a slowdown in the rental market caused by changing demand trends and the exit of expatriate tenants.
“Rental prices, which fell by 1.6 per cent in Q3, compared to Q2, and 1.3 per cent over the year, are also being driven by changes in the detached house market, where the ending of large aid flows into the country have prompted expatriate departures that have reduced demand for rented detached houses,” read part of the report.
List of Nairobi Estates Where Rent Has Dropped
The report by HassConsult Real Estate attributes the fall to reduced demand for high-end detached homes, particularly in upscale suburbs such as Muthaiga, where rents declined sharply following the exit of expatriates linked to aid organizations.
Also Read: Nairobi Satellite Areas Where Land Prices Have Increased – Report
Some neighborhoods in Nairobi have seen rental prices go down. This trend is especially noticeable in areas with older buildings or many apartment buildings.
These neighborhoods include:
- Muthaiga: Houses – -8.1% (Annual Change)
- Nyari Estate: Houses – -5.3% (Annual Change)
- Westlands: Apartments – -4.6% (Annual Change)
- Upper Hill: Apartments – -2.7% (Annual Change)
- Kileleshwa: Apartments – -3.1% (Annual Change)
- Kilimani: All Houses – -1.7% (Annual Change)
In Nairobi’s Satellite Towns:
- Athi River: Houses saw a quarterly rental price drop of 1.8% (Annual change).
- Kiambu: Apartments saw a quarterly rental price drop of 1.5% (Annual change).
- Ongata Rongai: Apartments saw a quarterly rental price drop of 0.2% and an annual drop of 4.4% (Annual change).
Why Property Purchase Prices Increased
The report also highlighted that property price rises in Kenya were more subdued in the third quarter of 2025 than in the previous quarter, reflecting the traditional lull in August sales, but still rose by 1.1 per cent from June 2025 levels, taking the full-year rise to 8.2 per cent.
The overall growth was driven by scattered pockets of demand for detached houses, pushing detached house prices up by 11.3 per cent in the year to September 2025.
“All segments of the market delivered sales price growth in the third quarter, reflecting the market’s solid foundation in cash-driven demand, but it was a subdued quarter of demand, overall, as middle-class incomes remained under pressure,” said Sakina Hassanali, Co-CEO and Creative Director at HassConsult.
Also Read: Nairobi Landlords to Pay More from January 2026 as Sakaja Introduces New Land Rates
The increase in the purchase of detached houses was specific to certain areas. Prices rose significantly in the suburbs of Runda, Ridgeways, Loresho, Lavington, Karen, and Muthaiga, as well as in the satellite towns of Athi River, Ruiru, Tigoni, Juja, and Kiserian.
However, prices fell in other parts of the city and surrounding areas.
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