A new report by Hass Consult property index for the first quarter of 2022 has detailed how land and rental prices increased in Nairobi satellite estates.
According to the data released on Monday, May 9, Kitengela topped among areas with the highest prices for renting apartments.
The price of an acre in Kiserian rose 16.6 per cent to Ksh9.4 million from Ksh8.06 million in 2020, while in Juja it jumped 17.5 per cent to Ksh17.4 million from Sh14.8 million.
In Athi River, land sellers raised their price for an acre by 4.86 per cent to Ksh15.1 million from Ksh14.4 million in 2020, while Syokimau’s price went up 11.3 per cent from Ksh22.1 million to Ksh24.6 million.
An acre in Upper Hill was the most expensive in the city at Ksh499.9 million, followed by Westlands and Kilimani at Ksh435.5 million and Ksh406 million respectively.
Muthaiga estate also recorded a jump in both land and rental prices. An acre gained its value with most advertisements indicating that land worth Ksh197.8 million had gone up by 6.5 per cent.
It was followed by Lang'ata which gained 6.3 per cent from the data compiled by the Hass Consult property index for the first quarter of 2022.
The report raised the prospects of other satellite towns such as Ruaka and Juja which gained their land prices due to the availability of affordable transport among other amenities.
"Ruaka enjoys easy access to the city's more affluent suburbs, rendering high land values that can only be absorbed on high-density apartment developments. Ruaka has, therefore, become the largest stockholder of apartments within the satellite as it presents the ability for the working population to enjoy both housing affordability and reduced transportation costs," stated Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
The data indicated the fastest recovery pace for the sector which was adversely affected by the effects of the pandemic. In general, land prices grew by a marginal 1.07 per cent.
Despite the rise, other estates such as Riverside, Donholm, and Loresho recorded a fall in land prices.
The rebound has given house buyers the confidence to invest in real estate with developers also increasing their investments in the sector.