The growing demand and the need to own land has pushed prices in Nairobi satellite areas to a historical high. This is according to the latest report by a realtor, HassConsult.
Overall land prices during the second quarter of the year 2022, running between April to June, improved by 4.1 per cent. Limuru and Athi River were the only towns whose prices did not hit historic high over the same period.
The fourteen satellite towns that were sampled include Athi River, Juja, Kiambu, Kiserian, Kitengela, Limuru, Mlolongo, Ngong, Ongata Rongai, Ruaka, Ruiru, Syokimau, Thika, and Tigoni.
HassConsult attributed the sharp rise in prices to emerging opportunities in manufacturing, retail, logistics and investments in infrastructure.
"We have witnessed a resurgence in land activity in the satellite towns attributed to an expansion of services in the wider Nairobi area, owing to infrastructure upgrades, a growing population as well as the influx of international interests looking to create a regional base in Nairobi," HassConsult revealed.
Sakina Hassanali, Head of Development Consulting and Research at HassConsult, further noted that the prices in the Nairobi suburbs exhibited stability with a 0.17 per cent growth, with only high-end, low-density suburbs Loresho, Spring Valley and Nyari showing optimistic growth at 3.5, 3.4 and 2.1 per cent respectively.
Here is the Breakdown of the Approximate Prices Per Acre
In Athi River, the price of an acre piece of land stood at Ksh15.8 million, while in Kiambu, the price stood at Ksh42 million.
In Kiserian, an acre retailed at approximately Ksh9.8 million and Ksh14 million in Kitengela.
"In Ruiru, land acquisition cost increased from Ksh4 million to around Ksh15million. The growth also affected housing prices. There are people settling from the diaspora and want to access the area via bypass from JKIA.
"Even those in Kitengela are the same people from diaspora. That is why the prices are rising," Christine Wakanyi, Head of Customer Experience at Optiven Limited, told Kenyans.co.ke.
Juja recorded a 20.91 per cent annual increase in the second quarter, with average land prices at Ksh18.5 million.
"In Q1 2022, the land was retailing at Ksh17.4 million and in Q3, 2021, it was at Ksh15.8 million. You can see the rise in land prices and various factors such as the expansion of the Eastern Bypass," Moses Muriithi, CEO of Fanaka Real Estate, reflected on the HassConsult report.
According to HassConsult, in Kitengela, the price of an acre of land stands at Ksh14.2 million, Ksh22 million in Limuru, Ksh31.9 million in Mlolongo, Ksh26.5 million in Ngong, Ksh27 million in Ongata Rongai and Ksh94 million in Ruaka.
The realtor's report further added that prices in Syokimau now stand at Ksh25 million per acre, with Tigoni and Thika going for Ksh29 million and Ksh21 million, respectively.
Upper Hill remained the most expensive Nairobi suburb, with an acre hitting Ksh494 million.
