Housing prices in various Nairobi estates have recorded a slight increase indicating a recovery in the housing market prices as the country bounces back from the adverse effects of the Covid-19 pandemic.
This is according to the latest report released by the Kenya Bankers Association (KBA) fourth quarter of 2020, which tracked the movement of price changes for houses in various estates in Nairobi and its outskirts among other areas, clustering them into three regions based on price range.
Overall, KBA noted that housing prices increased marginally by 0.22 percent following a contraction of 0.08 percent in the previous quarter.
The report attributed the price adjustments to the demand and supply in the housing market. This combined with the fact that homeowners prefer new buildings over older ones saw Kenyans rush to new apartment buildings within Nairobi and its environs.
The index showed that demand increased as the number of transactions in the fourth quarter increased fivefold from 57 in the previous quarter to 314 units. Further, the transactions noted a two-fold increase compared to a similar period in 2019.
The report broke down changes in each regional cluster based on the three house types; apartments, bungalows and maisonettes.
The first cluster has areas including Athi River, Mlolongo, Mavoko, Nakuru, Ngong, Ruaka, Syokimau, Embakasi, Kahawa Wendani, Thika, Mtwapa, Utange, Kitengela, Kiembeni, Nyeri, Likoni, Eldoret, Ruiru, Kilifi, Thika road (Kasarani, Roysambu, Ruaraka), Meru, Bungoma.
Here, apartment prices increased from 102.57 to 105.26, while bungalows increased significantly from 101.11 to 108.06 indices. Maisonettes increased from 104.45 to 104.47.
For instance, a one-bedroom house in Embakasi ranges from Kshs10,000 to Ksh15,000 while a bedsitter goes ranges from Ksh6,500 to Ksh10,000.
The second cluster has Thindigua (Kiambu Road), Kiambu, South B, South C, Kabete, Komarock, Imara Daima, Membley, Buruburu, Rongai, Waiyaki Way (Uthiru, Regen, Kinoo, Kikuyu), Mbagathi road, Ngong Road, Langata.
For this cluster, apartment prices rose on the index from 101.80 to 103.89, as did bungalows, from 100.53 to 105.13. Maisonettes also increased significantly from 101.66 to 107.00.
Houses in areas such as Rongai have become a preferential area for most Nairobi residents who prefer to move from the city and seek residential apartments in the town. A one-bedroom house for rental goes ranges at Ksh14,000
The final cluster includes posh estates such as Kileleshwa, Kilimani, Lavington, Westlands, Spring Valley, Riverside, Milimani (Kisumu), Milimani (Nakuru), Runda, Karen, Garden Estate, Parklands, Ridgeways, Muthaiga, Loresho, Kitisuru, Adams Arcade, Nyali, Mountain View, Nyari.
For this cluster, the change in apartment prices was not reported. Maisonettes rose from 104.21 to 108.96. The change for bungalows increased from 103.84 to 110.97.
Overall, the report observed that homeowners preferred apartment buildings which accounted for 71 percent of transactions made as Bungalows, Mansionettes and Townhouses accounted for 4.0 percent, 23.4 percent and 1.5 percent respectively.
