Ongata Rongai in Kajiado County has dethroned Thika as a hotspot for Kenyans seeking to buy land within the 14 Nairobi satellite towns.
According to HassConsult Q3 Land Index Report, the increasing demand for land in the area saw land prices rise by 8.2 per cent between July to September.
The demand was credited to the expansion of the Magadi Road which covers the Bomas - Kona Baridi stretch.
Construction of the over 20-kilometre road was launched by President William Ruto on April 20. The road starts at the junction of Lang'ata Road near Bomas and runs through Ongata-Rongai.
Property analysts project that the road construction will open up the area for investors for housing and other amenities such as malls, schools and many more.
"Ongata Rongai was a front runner in quarterly price growth at 8.2 per cent, displacing quarter two leader Thika as developers anticipate improved access due to the resumption of the dualling of the Bomas-Rongai-Kiserian road," read the report in part.
As of September 30, an acre of land in the satellite town was put at Ksh25.4 million while a quarter parcel was going for Ksh10.5 million.
Those seeking a three-quarter parcel on the other hand pay more with the price put at Ksh34.7 million.
Housing
Already-built houses in the town have also experienced an increase in demand.
As a result, landlords and property developers have been forced to increase rental and house prices respectively.
House prices were increased by 2.2 per cent in Q3. Notably, since the beginning of the year, house prices have shot up by 8.9 per cent.
Regarding the prices, four-bedroom villas are sold between Ksh10 million to Ksh13 million. Three-bedroom houses are sold at an average of Ksh6.5 million.
Two-bedroom houses go for Ksh4 million while one-bedroom houses are sold at an average of Ksh3 million.
On the other hand, Rent in the area had increased by 1.2 per cent in the last three months.
Currently, a one-bedroom house is rented between Ksh10,000 to Ksh18,000. Two-bedroom apartments are let between Ksh20,000 to Ksh25,000.
Rent for three-bedroom houses averages at Ksh30,000. Bedsitters on the other hand rent between Ksh5,000 to Ksh7,500.
Transport
Kenyans working in Nairobi CBD spend between Ksh100 to Ksh100 for one way.
Expansion of the Magadi Road will also see a reduction in traffic jams and open the area up to other transport companies.
