Land in Kiambu has become an attractive investment proposition for Kenyans seeking commercial parcels, according to the HassConsult Land Index covering the fourth quarter of 2023.
The report published by the real estate company shows that property developers and investors had almost overnight, gained an interest in buying land in the populous county between October to December 2023.
According to HassConsult, land prices in Kiambu for a long time had stagnated, which the real estate company cited as a major reason behind the sudden interest. However, due to the increased demand, land prices shot up by 9 per cent in the last three months of 2023.
This was the sharpest rise that was witnessed within the 14 satellite towns of Nairobi during the period under review.
“Kiambu, which has recently perceived overpricing on high speculation, jumped to the head of the queue in quarterly price growth at 9.4 per cent, pointing to renewed demand from investors looking to take advantage of the price stagnation seen in previous months,” Sakina Hassanali, Head of Development Consulting and Research at HassConsult, stated.
In the fourth quarter of 2023, an acre of land in Kiambu averaged Ksh47.3 million while a quarter of an acre was sold at Ksh28 million.
2023 Land Prices
Between January and March 2023, an acre of land was averaging Ksh44,300,000 with those purchasing a quarter of an acre parting ways with Ksh23,800,000.
In the succeeding quarter, prices of an acre piece dropped by Ksh300,000. However, prices for the quarter pieces shot up to Ksh24,000,000.
On the other hand, between July to September 2023, the price of an acre dropped further by over Ksh800,000 to retail at Ksh43,200,000.
In the third quarter of 2023, prices for quarter pieces also dropped from Ksh24,000,000 to Ksh23,800,000.
Why Kiambu is Hot Property
Apart from stagnating land prices, Kiambu is also attractive to investors because of key infrastructural projects and connectivity.
Given its proximity to Nairobi, Kiambu has a good road network which is key to attracting companies and potential homeowners.
The county has also been prioritised for major infrastructure programmes. For instance, in October 2023, the World Bank set aside Ksh1.6 billion for infrastructure development in Kiambu Town and other estates within the county.
On the other hand, Kiambu's proximity to the city is also attractive to Kenyans who are seeking to move out of Nairobi and still work in the city. The movements out of Nairobi have been attributed to the land prices of Nairobi estates which have become too expensive for many.
For instance, a potential homeowner, seeking affordability, will prefer to spend Ksh44 million on land in Kiambu than spend Ksh65 million on a similar piece in Karen (which was the cheapest for Nairobi suburbs in 2023 Q3).
