Three Nairobi satellite towns recorded impressive gains in land value owing to the increased demand witnessed during the second quarter of this year.
As highlighted in the HassConsult report, Kiserian, Limuru led in quarterly price gains at 9.4 per cent and 8.4 per cent.
On the other hand, Ongata Rongai registered a price gain of over 7 per cent between April and June 2024.
"In the towns, Kiserian, Limuru and Ongata Rongai led quarterly price gains at 9.4 per cent, 8.4 per cent and 7.8 per cent respectively," read the report in part.
The report attributed the recent developments to the high demand for land in the satellite towns where land prices are cheaper in comparison to the suburbs in Nairobi.
Experts have projected for the land in the satellite town to continue gaining in the coming months owing to more demand.
Notably, experts note that people will likely invest in land, especially in satellite towns, as they will be more profitable in comparison with government securities.
“Satellite towns are driving the revival of land as a competitive asset class with an average annual growth of over 10 per cent. With interest rates projected by the Central Bank of Kenya to fall in coming months, the stable price growth seen over the last two years should make land even more attractive as an asset,” she added.
"Satellite towns are now poised to overtake government Treasury Bills in annual returns. On an annual basis, 9 out of 14 satellite towns made double-digit price gains, led by Ongata Rongai at 16 per cent," read the report in part.
Land Prices in the 3 Satellite Towns
In the second quarter of 2024, an acre of land in Kiserian was sold for Ksh11.3 million. Notably, Kiserian registered the lowest land prices out of the 14 satellite towns.
This, therefore, explains why the prices in Kiserian had the highest growth as many Kenyans seek the cheapest alternatives even among the satellite towns.
"Developers have also shown a preference for areas whose prices are lower than the satellite town average of Ksh28.8 million, as they keep an eye on overall costs due to higher building input prices," read the report in part.
Meanwhile, in Limuru, an acre was sold for Ksh23.3 million while an acre of land in Limuru was sold at Ksh26.7 million.
