Ngong & Kiambu Among Towns Where Buyers Are Rushing to Purchase Land

An aerial view of affordable houses under construction in Pangani, Nairobi County.
An aerial view of affordable houses under construction in Pangani, Nairobi County.
Photo
Boma Yangu

The prices of land in five Nairobi suburbs and satellite towns recorded a slight decline in the fourth quarter of last year, between October and December.

Hass Consult, in its Fourth Quarterly Report published on Wednesday, January 22, revealed that land prices in Gigiri, Kitisuru, Muthaiga, Ngong, and Kiambu towns experienced marginal drops compared to the third quarter, which covered July to September.

According to the report, Kitisuru saw the largest decline among the towns in the Nairobi Metropolitan Area, with a 1.4 per cent depreciation, followed by Kiambu at 0.3 per cent.

Sakina Hassanali, Head of Development Consulting and Research at Hass Consult, attributed the decline to periods of economic uncertainty, which led some developers to postpone decisions to acquire more land.

A signpost showing a parcel of land
A signpost showing a parcel of land.
Photo
Capital

“It also shows that the infrastructure-led price boost in areas such as Thika, Kiserian, Mlolongo, and Syokimau is starting to wane, given the sharp price jumps of previous quarters,” Hassanali stated.

The report further attributed the drop in land purchases in these estates to a tough economy which triggered massive job losses and further high interest rates that affected land buyers.

Despite the drop in land prices in the five estates, the prices of land in Nairobi towns such as Karen, Kileleshwa, Kilimani, Langata, Lavington, Loresho, Nyari, Parklands and Ridgeways appreciated.

Other towns where land prices improved include Riverside, Runda, Spring Valley, Upper Hill, Westlands, Juja, Athi River, Ongata Rongai, Ruiru, Syokimau and Thika.

As per the report, the price of land in Juja recorded the highest appreciation rate at 4.1 per cent followed by settlite estates such as Syokimau, Ruiru and Parklands.

For instance, an acre of land in Juja currently retails at Ksh23,100,000 while lands in Syokimau, Ruiru and Parklands retail at Ksh37,800,000, Ksh35,600,000 and Ksh448,700,000 respectively.

Meanwhile, the report also highlighted Nairobi estates where rental prices dropped during the fourth quarter of last year. According to Hass Consult, land prices dropped drastically in Karen, Kileleshwa, Muthaiga,  Runda, Westlands and Ngong.

While explaining the reason behind the drop in rental prices in these areas, Sakina Hassanali noted that tough economic times were witnessed in the country during the final quarter of last year which forced landlords to consider lowering rents.

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Residential houses in Runda neighbourhood, Nairobi in a photo dated October 2019
Photo
Real Estate Kenya