Land prices in Ngong and Ongata Rongai have recorded the largest increase over the past year, according to the Hass Land price indices for the second quarter of 2021.
The report, which showed the performance of land and properties in various parts of the city and its outskirts, indicated that Ngong recorded 18.1 percent annual growth with a slight 1.1 percent increase from the previous quarter.
The value of land in Ngong increased 3.32 fold in the past 10 years. The current average value of land is Ksh25.4 million.
On the other hand, Ongata Rongai recorded 11.8 percent annual growth, with a 1.2 percent increase from the January to March 2021 period. Land price in Rongai has also increased 2.81 fold, with the average price per acre valued at Ksh24.8 million.
The performance was attributed to a new generation of landowners who sought affordable land on the outskirts of Nairobi.
“Land in Ngong was traditionally held by individuals from the old generation who owned large chunks of more than five acres, with an aim of maintaining their wealth. However, we are seeing an end to this era as a new generation i.e., their heirs are keener on cashing in on this land by selling parcels.
"This new generation has led to an increase in the supply of subdivided of eighths and quarter parcels for sale thus making it possible for other Kenyans to own land in Ngong,” read part of the report.
In the case of most Nairobi suburbs, the prices either stagnated or increased by a slim margin.
Nyari showed the largest improvement with a 6.2 percent annual increase- with an acre of land valued at Ksh110.4 million
Other estates that depicted a notable increase include Spring Valley 5.1 percent, Runda 4.4 percent, Langata 3.5 percent, and Muthaiga 2.8 percent.
As for satellite towns, the biggest annual gains after Ongata Rongai were Mlolongo 11.1 percent, Kiserian 9.3 percent, Athi River 9 percent, Juja 7.9 percent, and Thika 7.7 percent.
In the case of rental prices, Muthaiga registered the highest annual increase in prices at 11.7 percent, while Ngong was top in satellite towns at 6.2 percent.
