Land prices continue to drop slightly in both the suburbs and satellite towns in Nairobi, according to Hass Land price indices for the second quarter of 2020.
The report which showed the performance of land and properties in various parts of the city, indicated that while some land areas experienced a depression in value others emerged to be more lucrative.
On average the value of land increased from Ksh 30.3 million in December 2007 to Ksh190.7 million in June 2020 which means that Ksh1 Million invested at the end of 2007 would have raked in Ksh8.98 Million if invested in land in Nairobi Satellite towns and Ksh6.30 Million if invested in land in Nairobi Suburbs.Nairobi-18 Suburbs Change in Prices Since July 2010 in Hass Land price indices for the second quarter of 2020.Hassconsult
In the surburbs, Donholm area was pointed out as having registered the highest quarterly increase in 2020 land prices at 2.76% while Ongata Rongai was top in satellite towns at 1.26%.
Land prices in Gigiri increased by 1.2%, Kitisuru 0.5%, Runda 0.3% and Muthaiga 0.2%.
As for satellite towns, the biggest gains after Ongata Rongai were Mlolongo 0.5% and Kiserian at 0.4% increase.
On the other hand, Parklands suburb posted a 2.74% drop in land prices while in the satellite towns, Limuru registered a 3.9% drop. Even though Limuru has seen the biggest decline in the quarter, it was still up 3.4% compared to last year.
HassConsult noted that the mild softening, despite the Covid-19 pandemic which continues to affect the wider economy, is a reflection that investors still view land as a resilient asset class over the long term.
"The Covid-19 pandemic continues to disrupt the economy and as such investor interest has waned over the quarter but we are yet to see 'fire sales' on land as this asset class is still seen as the most resilient over the long term,” Head of Development Consulting and Research at HassConsult Sakina Hassanali stated
.Nairobi-14 Satellite Towns Change in Prices Since July 2010HassConsult
On an annual basis, Muthaiga recorded the highest gain among the suburbs at 4.5% while in towns, Ruiru recorded the highest increase in land prices at 5.16%.
The real estate company observed that Upperhill had the most expensive land at Ksh525.7 million per acre while in the satellite towns an acre of land in Ruaka commanded a Ksh89.8 million asking price.
- High Life2 March 2021 - 3:43 pm
- Up in Flames2 March 2021 - 2:48 pm
- Free2 March 2021 - 3:14 pm
- Tweet a crime2 March 2021 - 4:13 pm
- Insider2 March 2021 - 1:57 pm
- dangerous2 March 2021 - 1:25 pm
- breakthrough2 March 2021 - 1:50 pm
- Notice Issued2 March 2021 - 1:04 pm
- revealed2 March 2021 - 12:51 pm
- Hit2 March 2021 - 2:35 pm
- Principal teacher2 March 2021 - 12:55 pm
- Drama2 March 2021 - 12:27 pm