Over the last eight months, an acre of land in Ruaka estate has been projected to cost Ksh94 million, with realtors forecasting that the price would hit Ksh100 million in coming months.
According to HassConsult, a real estate firm, the price of land increased in the last two quarters hitting a record high among all satellite towns in Nairobi.
In the first quarter, an acre of land was valued at Ksh92 million. In the second quarter of the 2022 financial year, the price increased by Ksh2 million.
The report noted that the increased demand in Ruaka and other satellite towns was due to continued rapid growth in development and investment.
"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," Sakina Hassanali, Head of Development Consulting and Research at HassConsult stated.
But other factors such as Ruaka's location to administration centres and business hubs have contributed to the sharp rise in land prices.
Ruaka is located next to the United Nations (UN) offices which house different organisations, including UN-HABITAT Headquarters.
Other than UN, Two Rivers, the biggest mall in sub-Saharan Africa, is also located in Ruaka and so is Rosslyn Riviera and Village Market.
It also borders high-prized estates such as Runda.
The completion of the Northern Bypass further contributed to significant growth of the satellite town, which is now considered a hub for developers.
The growth was, moreover, attributed to cooler climates in the area compared to other satellite estates such as Syokimau and Athi River.
Land regimes and policies as well contributed to Ruaka's growth. Unlike other upmarket estates such as Karen, where the land subdivision is limited, Ruaka has few restrictions. In Ruaka, developers get more units on a small piece of land, thus giving better returns on investments.
In other estates such as Syokimau, building high apartments is limited due to its location near Jomo Kenyatta International Airport (JKIA). Apartments in the area barely go over three storeys due to operations at JKIA.
Due to high demand and money at stake, many locals have caved in and sold the land where dozens of apartments now stand tall.
However, most urban city planners have warned that the boom may affect the area leading to ungovernable developments. Unregulated developments lead to sewerage menace, water crisis, faulty electrical connections and, in some instances, increased cases of insecurity.
