As the real estate industry continues to gain momentum in the Nairobi metropolis, several estates located within the country’s capital recorded a decline in rental prices during the third quarter of the year between July and September.
Hassconsult, in its third quarterly report released on October 22, noted that rent dropped in Kiserian, Kitengela, Ngong, Mlolongo, Tigoni, Limuru, and Gigiri.
According to the report, Kitengela town led the list with a significant drop in rent by 3.6 per cent followed by Ngong which saw a reduction in rental charges by 2.8 per cent, and Kiserian by 1.1 per cent.
The drop in rental charges in the above towns was attributed to the recent anti-government protests witnessed in the country between June and July this year that negatively impacted the country's economy.
The period saw cautious pricing in a period of uncertainty, dampening the market that was coming off a period of strong price growth in the last quarter of 2023 and the first half of 2024.
“The property rental market eased after a strong period of growth between October 2023 and June 2024, when monthly rental price growth averaged 3 per cent. The market aligned with prevailing tough economic conditions, characterised by protests in June and July,” stated Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
While the rental charges in the seven estates slowed down in the third quarter of the year, government data also showed that the construction sector contracted by 2.9 per cent.
However, despite rent reduction, with the drop in inflation and expected fall in interest rates, both the rental and sales segments are looking at prospects of recovery in the coming months as consumer purchasing power is expected to improve.
The announcement followed the agency's report that also listed Nairobi towns where buyers purchased more land between July and September this year. Hassconsult, in its survey, listed Mlolongo and Limuru among the towns that saw a surge in land purchases.
Other notable towns that also featured among suburbs that attracted land buyers include Kiserian, Parklands, Thika, Kileleshwa, and Lang'ata. According to the report, Parklands led the list with a land price increase of 3.4 per cent to an average of 434 million per acre.
Kileleshwa and Lang'ata also depicted a strong improvement with gains of 2.9 per cent and 2.8 per cent respectively, with the survey indicating that the demand for land shifted to such towns that support multi-dweller units in a market that remains price-sensitive in a tough economy
“The leading suburbs in quarterly land price growth have emerged as the city's hotspots for apartment and mixed-use developments, hence the demand-driven price increase,” noted Sakina Hassanali.
