2023 recorded a significant shift in the real estate sector where property owners were forced to contend with new life decisions made by their customers.
The rental sector was most affected, and many Kenyans were compelled to adjust and align themselves with the prevailing economic conditions.
According to various reports, Nairobi residents moved to estates they considered worth their social and financial standards.
To break down what stood out, Kenyans.co.ke, compiled a list of estates which were preferred by Nairobi residents and the reasons behind the trend.
Limuru
Limuru stood out as among the most preferred neighbourhoods with most Kenyans especially those within Nairobi rushing to settle in the growing town.
HassConsult, a real estate company, in their Property Index of this year’s third quarter (July- September) showed a positive outlook with apartment rental prices in Limuru recording a 3.2 per cent increase.
The proliferation of infrastructure including an improved road network, medical facilities and other critical amenities led to a high tenancy rate in Limuru.
Limuru is also a quiet town perfect for starting a family. The area is also not congested which means it doesn’t experience pollution.
Residents also encounter minimal traffic as it takes only one hour to drive from Nairobi Central Business District to Limuru.
Langata
Langata attracted people seeking apartments and moving away from posh estates like Karen and Kileleshwa.
HassConsult noted that most people rushed to Langata due to land affordability compared to other urban estates.
For instance, an acre of land in Langata costs Ksh78 million while a similar piece of land in Riverside, Kileleshwa and Westlands goes for Ksh320 million, Ksh292 million and Ksh452 million respectively.
Accessibility also contributed to the general demand for property in Langata. Currently, the area is served by various roads including the newly opened Kibera Link Road, Langata Road and Mbagathi Road.
The area is also vastly served by commercial institutions, health facilities and recreation parks.
Ngong
Ngong remained competitive both in land and apartment prices. The area remained dominant throughout 12 months attracting wealthy investors.
The fact that it is located conveniently along Magadi Road, made transport to and out of the area smooth and hassle-free.
The residents moving to the area were also assured of proximity to top facilities and amenities such as schools, universities, hospitals, highways, banks, shopping malls, and recreational centres among others.
According to Username Investments, a real estate company, land and apartments in the area are strategic investments, assuring buyers of over 10-fold returns.
Nairobi residents also preferred Ngong due to infrastructural elements such as roads, electricity, water, and drainage.
Cool-weather conditions in the area also contributed to increased activity in Ngong.
Ongata Rongai
Ongata Rongai’s growth has been exponential in the last few years. The bustling growth was fast-tracked by the presence of students’ accommodations, railway line extension and the expansion of the Magadi Road which covers the Bomas - Kona Baridi stretch.
HassConsult noted that its growth overtook Thika as a hotspot for people seeking to buy land among the 14 satellite towns.
Land prices increased by 8.2 per cent between July to September this year. An acre costs north of Ksh24 million while a quarter parcel goes for Ksh10 million.
“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.
In terms of rental houses, availability is guaranteed to meet the demand for all classes of people.
The purchase of ready-built houses also recorded improved activity compelling property owners to hike the prices.
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.
Initially, the prices were low with four-bedroom houses costing less than Ksh8 million in Ongata Rongai whereas 2 bedrooms were priced at Ksh3.8 million.
Westlands
Westlands has maintained its prestige for over a decade now attracting both investors looking for office space and people looking for cool places to live.
The area is ideal due to its proximity to Nairobi CBD and all the social amenities one could think of.
Westlands is connected to all corners of the city by a proper road network, making it a hotspot of investment, especially among company founders seeking to tap into the vast market within the city.
Despite land prices retailing at over Ksh100 million for an acre, the demand has not cooled down.
At the moment, Westlands is bustling with activities with most international companies setting their presence in the country picking the location due to proper security.
