A report released by Hass Consultant Real Estate company has shed light on the prices of land in Nairobi suburbs and surrounding towns.
According to the report, land values in Nairobi have increased 6.41-fold since December 2007. However, they have depreciated by 1.8% over the last year, attributed to uncertainty in the Kenyan economy.
“Ksh. 1 million invested at the end of 2007 would have been worth KES. 10.71M in July 2023 if invested in land in Nairobi Satellite-14, KES. 6.41M if invested in land in Nairobi Suburbs-18, KES. 2.56M if invested in property, KES. 3.56M if invested in bonds and KES. 1.55M if invested in savings and only KES. 0.29M if invested in Equities,” said the report.
Here are the prices, according to Hass Consultant Real Estate:
Average value of land in Nairobi suburbs (Per acre)
Donholm – sh 78, 100, 100
Gigiri – sh 231, 200, 000
Karen – sh 65, 100, 000
Kileleshwa – sh 293, 800, 000
Kilimani – sh 396, 900, 000
Kitisuru – sh 94, 300, 000
Langata – sh77, 700, 000
Lavington – sh 225, 700, 000
Loresho – sh 102, 000, 000
Muthaiga – sh 213, 100 000
Nyari – sh 110, 800, 000
Parklands – sh 403, 900, 000
Ridgeways – sh 83, 200, 000
Riverside – sh 320, 900, 000
Runda – sh 89, 000 000
Spring Valley – sh 236, 800, 000
Upper Hill – sh 478, 700, 000
Westlands – sh 452, 400, 000
Average Prices of Land in Nairobi satellite towns (Per acre)
Athi River – sh 18, 200, 000
Juja – sh 18, 100, 000
Kiambu – sh 44, 000, 000
Kiserian – sh 9, 800, 000
Kitengela – sh 15, 200, 000
Limuru – sh 20, 900, 000
Mlolongo – sh 36, 300, 000
Ngong – sh 32, 000, 000
Ongata rongai – sh 23, 400, 000
Ruaka – sh 97, 200, 000
Ruiru – sh 28, 800, 000
Syokimau – sh 30, 300, 000
Thika – sh 25, 300, 000
Tigoni – sh 29, 800, 000
Analysis
The report noted that land values in Nairobi’s 18 suburbs stagnated in the second quarter of 2023, declining by 0.1% in the quarter but growing by 1.2% in the year.
The areas of Spring Valley, Donholm, Loresho, and Langata were the only ones that saw an increase in land values, with increases of 2.1%, 2.2%, 2.5%, and 3.9%, respectively.
“These increases were due to the fact that these areas have low rigidity of traditionally allowable development densities,” said the report.
Land prices within satellite towns were also subdued, with minimal increases of just 1.2% in the quarter and 5.1% in the year.
However, Ngong Town bucked the trend, with bullish land price increases of 20.7% over the year to June 2023. This is four times higher than the average satellite town increase.
The increase in land prices in Ngong Town was attributed to several factors, including the construction of the Ngong-Kiserian-Isinya road, which has improved connectivity to the area.
“The expansion of Ngong Road and the Ngong-Kibiko-Suswa Bypass have also made it easier for people to travel to and from Ngong. Additionally, the emergence of Karen as a commercial node has further boosted the appeal of Ngong Town,” noted the report.
Hass realtor further noted that the average land value in Nairobi suburbs increased from 30.3 million in December 2007 to 193.9 million per acre in June 2023.
Additionally, the average land value in satellite towns increased from 2.4 million in December 2007 to 26.2 million in June 2023.
In terms of the supply of advertised land, “Land in Donholm took up 0.3% of the market, Gigiri 0.6%, Karen 24.3%, Kileleshwa 3.9%, Kilimani 7.5%, Kitisuru 4.9%, Langata 4.2%, Lavington 12.7%, Loresho 2.4%, Muthaiga 3.8%, Nyari 2.4%, Parklands 3.7%, Ridgeways 2.1%, Riverside 1.7%, Runda 13.6%, Spring Valley 2.3%, Upperhill 2.7% and Westlands 6.8% respectively,” said the report.
In satellite towns, Land in Athi River took up 6.7% of the market, Juja took up 6.2%, Kiambu 5.1%, Kiserian 4.7%, Kitengela 18.4%, Limuru 4.4%, Mlolongo 1.5%, Ngong 8.9%, Ongata Rongai 7.1%, Ruaka 3.3%, Ruiru 16.1%, Syokimau 8.5%, Thika 6.8% and Tigoni 2.3% respectively.
