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The latest Hass Land Price Index, covering the fourth quarter of 2023, reveals an encouraging trend for investors, homeowners, and developers alike, indicating a robust recovery from the economic impacts of the Covid-19 pandemic.
According to Hass Consult, a leading real estate firm in Kenya, the average price of an acre in Nairobi's suburbs experienced a quarterly increase of 3.3 percent, marking the most significant growth since the first quarter of 2015.
This uptick reflects a burgeoning confidence in the property market, fueled by increased activity and demand in the sector.
The report highlights that a majority of the suburbs, specifically 14 out of 18, saw positive price movements, with Muthaiga, Ridgeways, and Loresho leading the pack.
These areas recorded quarterly price growths of 3.7 percent, 3.6 percent, and 3.1 percent, respectively, underscoring their appeal to investors and residents seeking quality living environments.
Ms. Sakina Hassanali, Head of Development Consulting and Research at Hass Consult, noted, “The average price per acre in the suburbs has now surpassed the Ksh200 million mark. This is attributed to the rapid price escalation in areas like Langata, Ridgeways, Loresho, and Muthangari, which are prized for their affordability, accessibility, and mixed-use zoning.”
Beyond the city's limits, Nairobi's satellite towns also recorded impressive growth, with a 3.7 percent increase in land prices over the quarter, the quickest pace since the second quarter of 2022.
Towns along major transport corridors such as Thika Road, Mombasa Road, and Ngong Road experienced steady price growth, driven by enhanced access infrastructure.
Notably, Syokimau, Ngong, and Ruiru emerged as frontrunners in this expansion.
Kiambu, in particular, witnessed a significant leap, with a quarterly price growth of 9.4 percent. This surge is seen as a response to the demand from investors eager to capitalize on the recent price stabilization, which had been preceded by a period of speculation-driven overpricing.
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On an annual comparison, the report shows that land prices in the suburbs rose by 4.0 percent, while satellite towns enjoyed a 9.3 percent increase, slightly outpacing the 9.0 percent growth recorded in 2022.
The persistent demand in satellite towns, where land prices are more accessible to a broader spectrum of buyers, continues to drive this differential growth.
This latest index serves as a testament to the vibrant dynamics of Nairobi's land market, offering promising opportunities for stakeholders across the real estate spectrum.
As the sector continues to evolve, it remains a pivotal area for investment and development, contributing to the city's ongoing growth and transformation.