The latest report has indicated that rental prices for apartments in some satellite towns around Nairobi City in the third quarter increased amid a tough economic environment.
According to Hass Consult, rental prices of apartments marked a 3.2 per cent growth while detached and semi-detached houses recorded a fall of 0.4 per cent and 0.7 per cent respectively.
Thika recorded the highest rental increase in the last quarter by 2.2 per cent followed by Syokimau at 1.9 per cent and Kitengela (1.3 per cent).
Mlolongo and Ruaka also recorded a rise of 1.2 per cent while Ongata Rongai recorded a 0.5 per cent rise. Kiambu rents rose by 0.1 per cent.
Only Ngong and Athi River recorded a drop in apartment rental prices during the quarter with a 1.3 per cent and 0.4 per cent decrease respectively.
“The apartment market is seeing a price resurgence backed by renewed demand for inflation beating investment assets in a period where the Kenya shilling is losing value,” noted Sakina Hassanali, Head of Development, Consulting and Research at Hass Consult.
However, most towns recorded an annual increase with Ongata Ronga leading at 16.0 per cent followed by Syokimau (12.4 per cent) and Kiambu (11.2 per cent).
Other were Ruaka (11.1 per cent), Kitengela (11.0 per cent), Thika (5.2 per cent), Mlolongo at (4.3 per cent), and Ngong (2.8 per cent).
The only town that recorded an annual decrease in rental prices was Athi River at 5.0 per cent.
Nairobi's posh estates also recorded an increase in the last three months with Westlands having the highest rise in rents at 3.4 per cent followed by Langata at 3.2 per cent.
''Suburbs such as Riverside, Langata, and Westlands, which are in close proximity to the city's main economic hubs performed best in rental price growth of between 1.5 percent and -3.4 percent. Among satellite towns, those with the best access infrastructure (Thika, Syokimau, Ngong, Limuru, Juja) continue to outperform the market average,'' the report noted.
Apartments in Riverside recorded an increase in their rental prices at 3.1 per cent while Kileleshwa and Kilimani rose 1.9 per cent and 1.5 per cent respectively. Lavington recorded a 0.2 per cent increase.
Parklands and Upperhill were the only suburbs that recorded a decrease of 0.9 per cent and 0.4 per cent in apartment prices in the third quarter.
