Land prices in Nairobi and its environs are set to be dictated by various upcoming projects, which are touted to take shape by the end of 2023.
With most Kenyans contemplating on how to gain returns by the end of the year, estates and other satellite towns near the projects, offer great investment plans.
According to Deloitte's 2023 Commercial Real Estate Outlook, revenue from land and other property is set to increase by 40 per cent.
"Following a pandemic-fueled course correction, the global real estate industry faces transformational shifts in how buildings will be used, valued, and transacted in 2023 and beyond," Deloitte's report read in part.
Based on Deloitte's positive projections, experts opine that Kenyans will seek to invest near projects taking shape in different parts of the country.
Deloitte is a renowned auditing, consulting, risk advisory, financial advisory, and tax firm.
Projects set to influence prices of land and consequently attract buyers include the construction of the Nairobi Western Bypass, the Nairobi-Nakuru Highway project, and Nairobi Railway City.
Others include the Nairobi Commuter Rail project, more precisely the setting up of new picking points, the extension of the Nairobi Standard Gauge Railway (SGR), and the Nairobi Expressway.
Shopping malls, schools, new medical facilities, and entertainment joints are also set to contribute to increasing land prices in different parts of the city.
Increased investor confidence is projected to drive the demand for land near government projects due to the country's political goodwill and current stability.
Besides investors' confidence, improved transport, security and other social amenities have also been termed as among the main contributing factors that will lead to increased land prices near government projects.
HassConsult, a real estate company with years of experience in the sector, announced a significant increase in land prices around Syokimau in its last quarterly report of 2022. The real estate firm attributed the sharp increase in land prices to the Nairobi Expressway project.
"Syokimau was the best-performing town, with prices increasing by 6.89 per cent over the quarter, which is attributed to the town becoming more accessible following the opening of the Nairobi Expressway," the HassConsult report read in part.
According to the firm, land in Syokimau shot from Ksh24 million to Ksh27 million per acre thanks to the Nairobi Expressway project.
"Expansion of infrastructure and road projects in satellite towns is easing pressure for Nairobi land property
development," Sakina Hassanali, Head of Development Consulting and Research at HassConsult, insisted.
However, owners are set to start experiencing higher rates following the government's plan to triple the capital gains tax resulting from gains through the sale of land and houses.
