Land, Home Prices Increase In Nairobi’s Satellite Towns On Strong Demand

Land prices in Nairobi’s satellite town increased the highest in quarter-four of last year on the back of rising demand for land that slowed down at the peak of Covid.

Data by realtor HassConsult shows that Ngong, Athi River, Limuru, and Thika recorded a 4.7 percent, 4.4 percent, 4.2 percent, and 3.6 percent rise in land prices respectively.

For example, an acre of land cost Sh28.8 million in Ngong while Sh29.3 million in Thika.

HassConsult notes that in the Kiambu County towns, Limuru posted the strongest quarterly growth at 4.2 percent as the town’s attractiveness is being enhanced because it is still relatively undeveloped compared to its peers.

“Limuru is currently less developed than other towns in Kiambu county and as a result is being seen as the next development frontier, offering uniquely green experiences that characterize the area,” said Sakina Hassanali, HassConsult Head of Development Consulting & Research.

“Additionally, the area is attracting speculators on account of the resumed plans to construct the Rironi-Mau Summit Road.”

In contrast, land prices were a bit lower in suburbs with Loresho recording the highest jump of 3.2 percent followed by Langata (2.8 percent) and Runda (2.1 percent).

“The recent rise of Westlands as the cities premium commercial and entertainment hub has drawn more interest to its surrounding suburbs, creating more value in these quiet neighborhoods that provide quick access to Westlands working zones as well as services for shopping and recreation,” Hassanali added.

“Investors with insufficient funds to afford Spring Valley at Kshs 220 million per acre are absorbed by Loresho’s lower priced price of Ksh95.5 million per acre,” she stated.

House sales were highest at Ngong (6 percent), Kiserian (5.6 percent), Ruiru (5.6 percent) and Tigoni (3.2 percent).

Similarly, rentals increased the highest in Kiambu at 9 percent followed by Ruaka (4.7 percent), Ongata (4.6 percent) and Syokimau 3 percent.

Muthaiga recorded 4.6 percent in house prices followed by Nyari (2.3 percent). However, home rentals fell by 1.2 percent during the period.

“City planning only permits building of one or two houses per acre in a majority of the city’s townhouse suburbs including but not limited to Muthaiga, Gigiri, Nyari, Kitisuru, Spring Valley, Loresho, Ridgeways, Runda and Karen – leaving an enormous part of the city locked away for only a small fraction of its residents who can afford homes of an average price of 80 million Kenya Shillings.” Hassanali added.