Limuru, Kiserian, Ongata Rongai and Ruaka are among Nairobi satellite towns that recorded a drop in land prices as documented by real estate firm HassConsult.
In its 2023 First Quarter report, the firm indicated that Limuru and Kiserian recorded a drop in land prices by 2.5 per cent.
Following the drop, an acre of land in Limuru averaged Ksh21,700,000 while Kiserian retailed at Ksh9.7 million.
On the other hand, Ongata Rongai recorded the largest drop of 6.8 per cent, with an acre of land retailing at Ksh23,600,000.
In Ruaka, an acre of land dropped to Ksh98,300,000 after a change of 0.2 per cent.
With the drop in prices, a number of Kenyans seeking to build their homes got attracted to the four areas whose portfolios have risen in recent years owing to infrastructural development and increased investments.
"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," read the report in part.
Some of the infrastructural projects making the four satellite towns lucrative include the 27-kilometre Nairobi Expressway and the planned Mau Summit - Rironi Road.
Similarly, HassConsult revealed that the drop was also reflected in the prices of houses as the demand for affordable housing grows among Kenyans.
"The demand for affordable rental properties, particularly apartments in satellite towns, has impacted the overall returns, as indicated by rental yields and capital gains.
"Apartments located in satellite towns recorded average rental returns of 3.4 per cent over the quarter and 9 per cent annually, respectively," read the statement in part.
Other areas within the Nairobi Metropolis that registered a drop in land prices were Kitisuru, Nyari, and Gigiri, which mostly host diplomats in the country.
HassConsult attributed the drop to the expansion of the diplomatic zone.
