A report released by Hass Consult Real Estate Limited on Thursday, April 18, revealed that Kileleshwa was the only Nairobi suburb posting decreasing land prices.
The leafy suburb which in its heyday was the destination of choice for millionaires and wealthy Kenyans saw a -0.08 per cent land price growth rate in the first quarter of 2024.
This made Kileleshwa be identified as the Nairobi suburb with the lowest quarterly increase in land prices.
Additionally, the suburb was further identified as having the lowest annual increase in land prices, registering a -1.49 per cent change.
“On an annual basis, the price of an acre in the suburbs rose by 5 per cent, while in the satellite towns, it was up by 11.2 per cent,” the report read in part.
“Lavington and Spring Valley were ahead of the queue in price growth among suburbs in the first quarter at 4 per cent and 3.8 per cent respectively, while Kileleshwa was the only one to record a price decline at a marginal -0.1 per cent.”.
Despite millionaires being cautious in investing in Kileleshwa, HassConsult revealed that land prices in Nairobi and its environs maintained an upward trajectory.
This was despite the fact that many prospective homeowners were battling tough economic times amidst increased input costs for developers.
There was a Ksh3 million increase in the price of an acre of land in Nairobi suburbs in the first quarter of 2024 compared to the last quarter of 2023.
On average, an acre of land now costs Ksh203 million having crossed the Ksh200 million mark for the first time in 2023.
“The growth in prices across 17 of 18 suburbs, despite the slowdown in pace in the quarter compared to the last quarter of 2023, shows that the upper end of the market is sustaining demand,” stated Sakina Hassanali, Head of Development, Consulting and Research at Hass Consult.
An acre of land in Kileleshwa is now being sold at an average price of Ksh291.6 million with the highest price being Ksh333 million and the lowest being Ksh250 million.
Upperhill and Westlands remained the most expensive suburbs in Nairobi with an acre of land selling at average prices ranging between Ksh481 million and Ksh465 million.
