At least five estates within Nairobi's suburbs and satellite towns saw a marginal drop in annual rental prices for the third quarter of this year, compared to the same period last year.
According to Hass Consult, a Kenyan real estate firm, rental prices in Kilimani, Muthaiga, Nyari Estate, Westlands, and Athi River dropped between July and September this year compared to the same time last year.
The real estate company, in its property index report released on Tuesday, October 28, featured Muthaiga as the estate which experienced the highest drop in rent by 8.1 per cent in the third quarter of 2025.
Similarly, annual rents in Kilimani, Nyari Estate, Westlands and Athi River dropped by 1.7 per cent, 5.3 per cent, 1.6 per cent and 3.1 per cent, respectively.
However, on a quarter-to-quarter basis, 19 estates within Nairobi's suburbs and satellite towns saw a substantial increase in rental prices, depicting a high demand for accommodation within the city.
As per the report, estates where rental prices grew between July and September compared to the previous quarter include Gigiri, Karen, Kileleshwa, Kilimani, Kitisuru and Loresho.
Others are Ridgeways, Runda, Spring Valley, Juja, Kiambu, Kiserian, Kitengela, Limuru, Ngong, Ongata Rongai, Ruiru, Langata, Lavington and Tigoni.
For instance, rents in Kileleshwa, Karen, Kilimani, Kitisuru, Lang'ata and Lavington increased by 2.5 per cent, 3.1 per cent, 3.4, 0.6 per cent and 3.6 per cent respectively.
Likewise, in Juja, Kiambu, Kiserian, Kitengela, Limuru, Ngong, and Ongata Rongai, rents increased by 1.5 per cent, 5.5 per cent, 0.9 per cent, 0.8 per cent, 2.8 per cent, 1.1 per cent and 2.9 per cent, respectively.
According to HassConsult Creative Director, Sakina Hassanali, the overall growth in rental prices was driven by scattered spots of demand for detached houses.
“All segments of the market delivered sales price growth in the third quarter, reflecting the market's solid foundation in cash-driven demand, but it was a subdued quarter of demand, overall, as middle-class incomes remained under pressure,” said Sakina Hassanali.
Meanwhile, in the second quarter of this year, only 4 Nairobi estates saw a quarter-to-quarter drop in rental prices. The estates that saw a drop in rents between April and June this year include Muthaiga, Westlands, Kilimani, and Runda.
These estates witnessed a drop in rents by 2.7 per cent, 1.7 per cent, 1.2 per cent and 0.1 per cent, respectively. The drop in rents in the four estates was attributed to a tough economic climate characterised by job losses and stagnant pay.
“Landlords are therefore increasingly forced to forego an increase in rent prices to protect occupancy in a price-sensitive market,” said Hassanali in the report released on July 24, 2025.
