The real estate landscape in Nairobi’s satellite towns has experienced substantial growth, with many areas reporting double-digit increases in land prices over the past year, positioning them as potentially lucrative investments compared to government securities, according to data from HassConsult.
In the first quarter of 2024, the land price index compiled by HassConsult revealed notable appreciation in various satellite towns. Ongata Rongai led the pack with a 16 percent increase to Sh27.4 million per acre, followed closely by Syokimau at 15.8 percent to Sh33.7 million. Kiserian and Mlolongo also saw significant gains, recording 15.5 percent and 15 percent increases respectively.
These robust land price gains are becoming increasingly competitive against returns in other asset classes, particularly government securities, which have seen declining interest rates as per the Central Bank of Kenya’s projections.
With the CBK indicating a downward trend in interest rates, land has emerged as an appealing investment option, boasting stable price growth rates exceeding 11 percent annually.
HassConsult’s head of development, consulting, and research, Sakina Hassanali, noted the preference among developers for areas with relatively lower land prices, particularly as construction input costs rise.
In contrast, land price increases in Nairobi’s suburbs have been more subdued, with Langata being the only area to record double-digit growth at 10.1 percent.
However, certain suburbs remain exclusive and high-priced, with Upperhill and Westlands leading the pack at an average of Sh480.9 million and Sh465.8 million per acre respectively.
Despite the disparities in price growth between satellite towns and suburbs, both segments contribute to Nairobi’s diverse real estate landscape, catering to different investor profiles and preferences.
We bring you the latest News updates from Mt. Kenya Region and beyond. We are the leading Mt. Kenya News outlet in the country.
