With the rising prices of rent in Kenya, especially in Nairobi Metropolis, many Kenyans are opting for other options such as buying houses.
The prices of houses in Nairobi have skyrocketed according to real estate companies, especially after the prices of land recovered in recent months since the country was reopened.
HassConsult in its third-quarter report noted that house prices recorded a modest 1 percent growth over the quarter. Detached houses recorded the highest gain at 1.7 percent over the quarter while apartments retreated by 0.7 percent over the same time.
“Upper Hill apartments were the top performers in the suburbs at 3.1 percent as Runda house prices retreated by 1.3 percent. Ongata Rongai led in the towns with prices mildly recovering by 2.7 percent as Thika apartments retreated by 2.4 percent.
“The Nairobi Expressway touchpoints have seen apartment prices in these areas rise on hopes that completion of the road will bring affordable housing closer to the city. Overall rents remained static at 0.1 percent in the three months to September,” the real estate company reported.
A spot check by Kenyans.co.ke reveals that Kenyans can, however, purchase affordable houses in various areas within Nairobi and its environs.
Here are some of the areas within the Nairobi Metropolis where you can get affordable houses below Ksh4 million.
Westlands
Westlands is one of the neighborhoods in Nairobi famous for its high-end apartments. Approximately 10 minutes from the Central Business District, Westlands is becoming an attractive option for many, given the construction of the expressway.
From a one-bedroom to a two-bedroom apartment the prices start at Ksh 3,250,000.
Dagoreti
Our spot check also revealed that a one-bedroom house in Dagoretti Corner goes for Ksh2 million with the same sized apartment in Kileleshwa going for Ksh3 million. In Denis Pritt, another one-bedroom house goes for Ksh Ksh 3,600,000.
Langata
At Nairobi West, located in Lang'ata constituency, a two-bedroom apartment along Highrise Mbagathi way costs Ksh 3,800,000.
Thika and Kiambu road
For those, who prefer houses far from the CBD, houses along Thika Road and Kiambu road would be ideal. A one-bedroom house on Kiambu road ranges from Ksh 2,650,000 to Ksh 2,700,000, with the same in Thika road going for Ksh. 2.5 million.
Starehe
Approximately 2.5km from Nairobi CBD, Starehe hosts estates such as Pangani and Ngara. Upon completion of Affordable houses under the Big 4 agenda, a one-bedroom apartment goes for Ksh1 million, a two-bedroom costs Ksh 2.5 million with a three-bedroom house leaving you Ksh3 million poorer.
A two-bedroom house in Ngara goes for Ksh 2,650,000 with other one-bedroom apartments within the same area going for Ksh 3,250,000.
Upcoming viable options
Through Treasury Cabinet Secretary, Ukur Yatani, the government has indicated that it plans to build another set 25,965 affordable houses in Nairobi under the Big Four Agenda.
The houses, whose investors have already been identified, for the Public-private partnerships (PPPs) project, will be undertaken in Starehe (3,360 units), Shauri Moyo (4,470 units), Kibera Zone B(4,435 units), and Mukuru Metric Site (13,700 units).
From the previous projects, owning a one-bedroom may go for Ksh1 million, a two-bedroom may cost Ksh 2.5 million while a three-bedroom house may go for Ksh 3 million. However, the prices may vary given the location and house demand in the area.
Land Factor
One contributing factor to the skyrocketing price of houses and rent is the high cost of purchasing land. According to HassConsult Property index, prices of land in centres neighboring the capital such as Syokimau, Kiambu, and Kiserian have spiked by 2.48 percent between July to September 2021.
Satellite towns’ land prices recorded a 2.5 percent increase over the quarter while land prices in Nairobi registered a static 0.28 percent. Ruaka recorded the second quarter on quarter price drop at 0.2 percent.
“Developer demand for Ruaka reduced as investors adopt a wait-and-see attitude considering huge stock on units, both developed and in the pipeline. Speculation that ongoing infrastructure projects will open alternative areas around Ruaka town as to the warning demand.
“Kiserian town is the best performer on a quarterly and annual basis at 5.3 percent and 18.24 percent. Spring Valley recorded a 2.2 percent quarterly growth while Nyari recorded a 7.18 percent annual growth. Loresho land prices dropped 1.32 percent as Riverside sees annual prices drop by 5.1 percent."
The cheapest land prices for an acre of land in the neighboring towns of Nairobi were in Kiserian (Ksh 8,700,000), Kiambu (Ksh 13,000,000), and Ruiru (Ksh 25,900,000). In Ruiru a 25 percentile per acre is projected at Ksh14 million and 75 percentile at Ksh33 million.
“In Ruiru and Kamakis areas, one can get houses at between Ksh4 million to Ksh15 million and above. This includes 3 bedroom bungalows and 4 bedroom maisonettes. For us, we majorly deal with land and it's true that prices have also increased in these two areas.
“This means that these satellite areas continue to attract investors and developers,” Moses Muriithi, CEO at Fanaka Real Estate told Kenyans.co.ke.
