HassConsult, which is a residential, commercial and industrial properties valuer has revealed in a report released on February 5, 2024, that there has been a high demand for land in Nairobi satellite towns.
The rush to satellite towns by Kenyans seeking affordable land was fueled by the price of an acre in the capital’s suburbs growing the fastest since 2015.
Noteworthy, for the first time in history, the average price of an acre of land in Nairobi crossed the Ksh200 million mark.
Regions where Kenyans rushed most to buy land include Ngong, Thika and Syokimau towns.
There was also an increase in demand for land located in Mlolongo, Athi River and Kitengela satellite towns.
“In Nairobi's satellite towns, prices went up by 3.7 per cent in the quarter, the fastest growth since the second quarter of 2022,” according to the Hass Land price index for the fourth quarter of 2023.
Kenyans are increasingly considering settling in the satellite towns as the land is not only cheaper but there is also better access infrastructure.
“Growth of land prices in satellite towns continues to outpace that of suburbs on higher demand as the cost per acre is within reach of more commercial and private developers,” it was revealed.
Key infrastructure projects that have increased access to the towns include Thika, Mombasa and Ngong Roads.
Ngong had the highest annual percentage change in terms of land prices at 21.4 per cent with an acre being sold at an average price of Ksh35 million.
Thika also saw a 17.8 per cent annual percentage increase in land prices with land in the Kiambu county-based town going for Ksh27.2 million.
In Syokimau, the average price of an acre is Ksh32.7 million, a 15.8 per cent annual increase while Mlolongo with a 10.8 per cent increase saw an acre being sold at Ksh37.8 million.
An acre of land in Athi River was sold at Ksh18.7 million while in Kitengela, the average price was Ksh16.1 million representing a 10.6 per cent and 10.5 per cent annual increase respectively.
