Estates located in Nairobi's leafy suburbs registered major drop in rental prices in 2020.
According to the Hassconsult Property Index Report 2020, published on January 3, 2021, 12 of the 15 listed neighborhoods recorded a negative annual change in rent.
Kitisuru led the way in terms of high-end estates where rental prices dropped, with an overall annual change of -6.5%.
The rest were listed as follows: Loresho (-6.4%), Lavington (-5.8%), Spring Valley (-4.9%), Ridgeways (-4.6%), Kileleshwa (-2.6%), with Nyari and Runda both recording -2.2% annual change in rental prices.
“A few suburbs have backed the trend of falling rents which still continue as tenants are negotiating for discounts amid the tough economic environment,” reads an excerpt from the report.
“Most buyers of high-end houses are looking for properties that offer consistent or stable returns regardless of the state of the overall property market. Additionally, buyers who want that dream home in some of the exclusive neighborhoods are prepared to pay a premium,” it further reads.
Muthaiga houses recorded the biggest quarterly increase in prices at 1.4% .
On the other hand, the recent trend of Nairobi residents moving to satellite towns was captured in the latest report in which apartments in Thika posted the highest quarterly increase at 1.8%.
The satellite town with highest annual Increase in Rental Price was Ngong, which saw a 9% increase in rental price over the last year.
The spike in prices in Thika and Ngong is notable as it proves a spike in demand for houses outside the city.
Apartments in Lang'ata recorded the highest asking rents over the quarter at 3.5%.
Covid-19 related disruptions in real estate have resulted in significant changes in the industry as Kenyans seek cheaper housing alternatives.
Property prices are subsequently expected to begin 2021 on a weaker footing.
