Nairobi landowners have had a year of mixed fortunes with certain areas recording an increase in prices.
According to the Hass Property Index Quarter 4 report published in February 2021, there was an overall drop in land prices in Nairobi in 2020, where the prices fell 2.56% compared to 1.69% in 2019.
Despite the overall sluggish performance, there were areas in the Nairobi suburbs that recorded an increase in land prices, Muthaiga (3.9%), Runda (2.7%), Donholm (2.1%), Spring Valley (1.1%), and Westlands (0.5%).
Muthaiga recorded the largest increase as it has seen an appreciation of 2.55 fold since 2011 with an acre of land in the area averaging at Ksh185 Million per acre.
In the Eastlands area, the Donholm estate has seen an appreciation of 3.46 fold since 2011. An acre of land goes for Ksh70 Million.
Nairobi's satellite towns over the quarter at 0.35% while registering a fall of 1.1% over the year ended 2020, a stark contrast to the 6.93 percent rise witnessed in 2019.
Nairobi Suburbs that saw an annual increase in land prices are Donholm (2.1%), Muthaiga (3.9%), Runda (2.7%), Spring Valley (1.1%) and Westlands (0.5%).
Satellite towns around Nairobi that saw an increase in land prices were; Mlolongo 5.4%, Ngong 9.9%, Ongata Rongai 8.2, Athi River 2.6%, Kitengela 2.8%, and Tigoni 1.9%.
On the other hand, the highest annual price falls in land value was experienced in Parklands at 7.35 % over 2020 followed by Riverside at 7.2% both apartment-dominated suburbs.
For satellite towns, Kiambu County accounted for the lion's share in land price drops in 2020 with six out of seven towns registering decreases in asking prices.
Kiambu Town, Ruiru and Limuru witnessed the biggest annual drops of 11.4, 6 and 3% respectively while Juja, Ruaka, and Thika also registered annual price corrections.
''Kiambu County has in the last decade seen the most intense development in infrastructure, which put the county into a bracket of investment that was in a league of its own - attracting institutional investors such as insurance companies, Saccos and real estate developers who bought large parcels of land for subdivision and further speculation.
"However, land prices in the county are moving towards a maximum of what the development market can bear, until we see a hike economic activity and therefore some space for property prices to rise further,'' Head of Development Consulting and Research at HassConsult Sakina Hassanali stated.
