Kileleshwa Estate is one of the neighbourhoods in Nairobi that has recorded a unique rental prices pattern in the last 5 years.
An analysis of reports published by Real estate firm, HassConsult by Kenyans.co.ke established that rent in the upper middle class estate had dropped every first quarter since 2019.
2019 registered the lowest drop in rent by 0.3 per cent.
However, 2020 saw a significant drop in rent with the real estate firm pegging the drop at 1.1 per cent.
On the other hand, rent prices in 2021 and 2022 dropped by 0.8 per cent. Kileleshwa residents also enjoyed a rent drop of 1.8 per cent in 2023.
The rent drop was majorly been attributed to the suppressed demand and economic factors contributed by the global pandemic which hit the country in 2020.
Suppressed Demand
In past years, Kileleshwa was mainly considered as a posh estate for the rich. However over time, the rich have preferred other estates such as Langata, which has become strategic in recent years.
This movement has been occasioned by the emergence of highrise apartments in the estate, making the area more populated thus affecting privacy.
In recent years, Kileleshwa homeowners have clashed with private developers over highrise apartments being put up in the area.
During a protest on October 26, Kileleshwa Member of County Assembly Robert Alai expressed to Kenyans.co.ke that most of the developments were being undertaken without proper planning, putting pressure on existing amenities.
"There is no consideration for public infrastructure. No one is building a community centre, schools, and police station or improving the sewer line," he stated.
Economy
The post-pandemic economy has affected Kenyans across the board and as businesses push to revive themselves, taxation policies have also not been easier on Kenyans.
Therefore, Kenyans in these areas will prefer to go to areas where land and house rent is cheaper.
Some of the cheaper estates that have become a preference for the rich in recent years include the 14 satellite towns neighbouring Nairobi. Another estate within Nairobi catching the rich's attention is Langata.
For instance, an acre of land in Kileleshwa goes for an average of Ksh296 million, which is 10 times more than the rate at major satellite towns.
Other Estates Recording Rent Drops
The analysis also revealed that Gigiri, Kitusuru, Kitengela, and Rongai have also been recording rent drops intermittently in recent years.
