14 estates within the Nairobi Metropolitan area recorded a decline in rental prices in 2023, as indicated by real estate company, HassConsult, in its latest report released on Tuesday, July 25.
The drop in rental prices was attributed to the decline in demand for housing necessitated by the high cost of living.
"HassConsult has unveiled the Hass Property price indices for the second quarter of 2023, with property prices stagnating at a 0.5 per cent drop in the quarter resulting in a 1.8 per cent drop in the year.
"Economic uncertainty pegged to rising costs, prospects of higher taxation and a higher cost of financing has resulted in reduced consumer confidence stalling speculative demand on real estate," read the report in part.
Kenyans, however, opted against relocating, which is synonymous with most people grappling to meet their daily needs.
Towns Which Recorded Highest Declines
In the report detailing the annual change in prices, Upperhill and Parklands recorded the highest decline in rental prices by 12.6 and 10.6 per cent, respectively.
Other suburbs that recorded a decline in rent were Kileleshwa (8 per cent ), Kilimani (5.6 per cent), Lavington (5.1 per cent), and Kitusuru (3.1 per cent).
Runda and Westlands followed, recording a drop of 2.7 per cent and 2.3 per cent, respectively.
In contrast, Karen witnessed a 3.0 per cent decline for the last three months, while Riverside recorded a milder decrease of 1.3 per cent.
Among the satellite towns, Kiambu recorded the highest drop at 4.4 per cent, followed by Athi River at 3.4 per cent.
In Limuru, rental prices experienced a decline of 3.2 per cent, while in Juja along Thika Road, the drop in rent was recorded at 3.1 per cent.
Towns Which Recorded Increase in Rental Prices
Nevertheless, despite the drop witnessed in some estates, others experienced an upswing, with Kitengela among those that recorded up to a 7 per cent increase. The increased demand for housing in satellite towns explained the rise indicated by HassConsult.
Other towns that witnessed a rise in rent were Ongata Rongai, Ruiru, Lang'ata and Ngong.
"Sale prices for houses in Langata and Ngong went up 12.8 per cent and 18 per cent respectively in the year running up to June 2023 while apartment prices went up by 15.5 per cent and 6.8 per cent in the same period," read the report in part.