Athi River recorded the highest increase in land prices, according to Hassconsult's first-quarter report released on Saturday, April 29.
The real estate firm indicated that the price of an acre plot in Athi River rose by 6.1 per cent to trade at Ksh17.9 million.
President William Ruto's proposal to extend the Standard Gauge Railway (SGR) to the Athi River Export Processing Zone was highlighted as the major reason for the spike.
"The proposal to extend the Standard Gauge Railway to Athi River's Export Processing Zone has sparked speculation and led to a 6.1 per cent increase in land prices over the quarter," Hassconsult report read in part.
That sharp surge was recorded between January and April 2023. In the last quarter of the 2022 financial year (September to December), an acre of land in Athi River retailed at Ksh16.9 million.
In the latest report, Hassconsult observed that a quarter an acre of land in Athi River stood at Ksh6.2 million, increasing by over 200,000 from the last quarter of the 2022 financial year.
Increased demand for land by real estate firms, individual buyers and companies also drove the prices to cross the Ksh17 million mark. This was attributed to road network expansion in the area, security, water resources, security and other critical resources and infrastructure.
Prices in Other Nairobi Satelite Towns between January - April
In Mlolongo, an acre of land stood at Ksh34.7 million, while in Kitengela, Ksh14.8 million. Syokimau, which recorded a sharp rise in 2022, an acre stood at Ksh28 million between January and April 2023.
Ruaka remained among the most expensive Nairobi satellite towns, with an acre of land going for Ksh98 million.
"Land prices in Nairobi's satellite towns increased by 1.28 per cent over the quarter, continuing their trend of higher appreciation rates compared to similar parcels in the city. This is attributed to the towns' affordability and improved infrastructure, which have made them increasingly attractive to potential investors," Hassconsult observed.
On the other hand, land prices in Donholm, Kitisuru, Langata, Loresho, Muthaiga, Nyari, Ridgeways, Runda, Spring Valley, and Westlands suburbs increased beyond the rates recorded after the pandemic.
HassConsult, however, highlighted a few pockets of cooling in Kitisuru, Nyari, and Gigiri, where land remained steady and even dropped in some quarters.
"These suburbs corrected this quarter after several quarters of heated pricing on expansion of Kenya's diplomatic zone," the report detailed.
Upperhill was the most expensive suburb, with an acre retailing at Ksh486 million, while Ksh450 million in Westlands.
