Land prices in five satellite towns in Nairobi have recorded the biggest jump in land prices over the last three months, according to the latest report by HassConsult.
HassConsult's latest quarterly property pricing index has revealed that ongoing infrastructure expansion in satellite towns has seen the demand for property increase.
Overall, however, average land prices in satellite towns in the review period were "subdued with minimal increases of just 1.2 percent in the quarter and 5.1 per cent in the year".
The satellite town with the highest increase in land prices includes Ngong, Thika, Syokimau, Mlolongo and Kitengela.
“Ngong witnessed bullish land price increase of 4.7 per cent in the quarter and 20.7 per cent in the year defying economic conditions in a strong growth story,” Hass Consult reported.
The increase in land prices in Ngong Town was attributed to the construction of major link roads, reducing traffic for commuters.
“Ngong residents have less traffic to contend with when travelling to and from work thanks to the expansion of Ngong Road and the Ngong-Kibiko-Suswa Bypass opening up the Kibiko area," the report noted.
“The emergence of Karen into a commercial node further supports the rise of Ngong which has yet to show signs of slowing down,” the Hass Land Index reported.
The average price of an acre in Ngong is Ksh32 million while land prices in Thika increased by 5.48 per cent to Ksh25 million with a 15.9 per cent annual change.
Mlolongo, Kitengela and Syokimau have benefitted from Nairobi Expressway which has reduced commute time.
In Kitengela, land prices increased by 2.5 per cent in three months to Ksh15 million, while Mlolongo saw a 4.7 per cent increase bringing the price to Ksh36 million per acre.
Kitengela and Mlolongo have seen a 6 per cent and 13.9 per cent annual increase respectively.
In Syokimau, potential homeowners must part with Ksh30 million per acre which was a 4.1 per cent quarterly increase and 17 per cent annual change.
While land prices in satellite towns recorded some noticeable increase, most Nairobi suburbs recorded an "average 0.1 per cent drop in the quarter ending June 2023 as the city faces uncertainty on future demand cycles given economic slowdown".
In the 18 Nairobi suburbs, only Spring Valley, Donholm, Loresho and Langata recorded an increase in land prices.
“Land price increases were witnessed in city suburbs that had low rigidity of traditionally allowable development densities,” HassConsult noted.
