Demand for land continued to peak in 2022, occasioned by different factors, including recent developments such as the construction of the Nairobi Expressway from Mlolongo to James Gichuru Road in Westlands.
The demand for land was also attributed to the push for financial freedom through the assembling of assets.
However, in some estates where land was expensive, such as Upper Hill, the prices dropped from the first quarter of 2022 to the third quarter between July and September.
According to HassConsult, a real estate company report released on Wednesday, November 9, Upper Hill recorded a slight drop in land prices due to an oversupply of commercial office space in the area.
"Upperhill continued stagnation is assigned to the office market oversupply in the area that will not see new commercial buildings come through until demand catches up with supply,” Sakina Hassanali, Head of Development Consulting and Research at HassConsult, stated.
Despite a slight drop, Kenyans have continued to buy land in Nairobi satellite towns with affordable rates.
Areas With Affordable Land
According to real estate experts, land affordability is determined by the location, Nairobi suburbs and satellite towns.
Nairobi Satellite Towns
The satellite towns include Athi River, Juja, Kiambu, Kiserian, Kitengela and Limuru.
Others included Mlolongo, Ngong, Ongata Rongai, Ruaka, Ruiru, Syokimau, Thika and Tigoni.
In Kiserian, a quarter of an acre retails at around Ksh1.8 million. According to the HassConsult report, land prices in the area dropped from Ksh14.4 million to Ksh10 million between July and September 2022.
In the same period, an acre of land in Athi River stood at Ksh16.2 million, translating to Ksh4 million for a quarter an acre.
Other areas where land is affordable in satellite towns include In Juja, where an acre retails around Ksh18.8 million.
The Nairobi Expressway contributed to the sharp increase in land prices in Syokimau, with an acre hitting KshKsh27.7 million between July and September.
However, with land subdivisions, land in Nairobi satellite towns is expected to drop even to Ksh800,000.
"In Syokimau, some landowners divide their plots into smaller pieces then sale them for even Ksh1.2 million. This practice has recently gained prominence due to increased demand for land," an official of Syokimau Residents Associations stated.
Affordable Pieces in Nairobi Suburbs
The Nairobi suburbs are mostly occupied by politicians, government experts, civil servants and corporate gurus.
Increased demand in Nairobi suburbs is due to road infrastructure and investors getting drawn to develop housing and affiliated property for higher education centres in the area.
Areas in Nairobi suburbs include Donholm, Gigiri, Karen, Kileleshwa, Kitisuru, Kilimani, Lang'ata, Lavington and Loresho.
Others include Muthaiga, Nyari, Parklands, Ridgeways, Riverside, Runda, Spring Valley, Upperhill and Westlands.
Karen is the most affordable estate to buy land in all the Nairobi suburbs. According to the HassConsult report for July and September, an acre in Karen stood at Ksh65 million, while in Donholm was Ksh72 million.
However, with land subdivisions, the prices were projected to cost around Ksh12 million for a quarter piece.
Besides Karen and Donholm, an acre in Lang'ata goes for Ksh70 million, while in Ridgeways, it is Ksh79 million.
Furthermore, an acre of land in Kitisuru and Runda has not yet hit Ksh100 million. They retail at Ksh95 million and Ksh86 million, respectively.
However, affordability depends on factors such as bargaining power, area policies, infrastructural developments and future land price projections.
However, if the Bill tabled in Parliament seeking to grant the Ministry of Lands powers to determine the maximum amount of land one can own passes, the prices are projected to drop.
Those hoarding land are also expected to put them up for sale.
