Upperhill and Ruaka most expensive Nairobi Suburb and Satellite Towns

By Vera Shawiza / July 31, 2017

nairobi-city

House sales prices and rentals recorded a 3.1 percent and 2.0 percent drop, respectively, with land prices recording an increase of 0.7 percent and 1.0 percent  in Nairobi Suburbs and Nairobi Satellite Towns, respectively, in Q2’2017, according to Hass Property.

“These areas have traditionally been prime and land has been hard to get and so when it is put up for sale in the market it is sold, further encouraging more owners to test the market.

Development minded investors on their part are opting to develop high-end gated communities as opposed to units that occupy large parcels of land,” said Ms Sakina Hassanali, Head of Development Consulting and Research at HassConsult.

The Hass Composite Sales Index recorded a 3.1 percent q/q drop while the Hass Composite Letting Index recorded a 2.0 percent q/q drop attributed to a decline in demand for residential property occasioned by a reduction in transaction volumes in the market.

According to the Hass Consult Property Price Indices Q2’2017 report which covered land and house price indices indicated a drop-in property prices. 

Upperhill is the most expensive suburb with land now priced at Ksh550.9 million while Ruaka is the most expensive satellite town with land priced at Ksh81 million per acre

Detached houses recorded the biggest q/q price drop at 4.0 percent, while apartments recorded a 1.4 percent q/q price drop.

In Nairobi Suburbs, Eastleigh recorded the highest q/q increase in sales price of 2.0 percent, while Upper Hill and Kileleshwa recorded the highest decline of 2.8 percent q/q.
In Nairobi Satellite Towns, Limuru recorded the highest q/q increase in sales price of 3.2 percent, while Ruaka recorded the highest decline of 3.1 percent q/q.

In terms of rental charges, Eastleigh recorded the highest q/q increase in rental prices of 4.1 percent, while Langata recorded the highest decline of 5.9 percent.

In Nairobi Satellite Towns, Ngong recorded the highest q/q increase in rental prices of 5.3 percent, while Kiambu recorded the highest decline of 3.2 percent.

The report further noted that apartments account for 55.9 percent of all properties in the rental market and 40.1 percent of all properties on sale due to their higher potential to unlock value.

In general, the rental market performed better than the sales market recording less declines of 2.0 percent as compared to the sales market with a decline of 3.1 percent indicating that there have been increased interest in rental yields by the investors due to the marginal house price increases.

Poor performance in Q2’2017 was attributed to the tough macroeconomic environment that has persisted over the past year.

Cytonn Investments, in their weekly report stated that the current trend in the performance of rental market was temporary adding that they expected the market to stabilize on back of relatively strong GDP growth.

According to Cytonn, on average 5.4 percent in the last 5-years, the relatively high returns in real estate, the middle-class growth and urbanization rate at 4.4 percent, that have created demand for real estate. However, in the long run there will be price stagnation in selected markets with surplus supply.

The company noted that investors need to invest in proper market research and trend analysis to identify specific market niches.



About Vera Shawiza

Vera Shawiza is Soko Directory’s in-house journalist. Her zealous nature ensures that sufficient and relevant content is generated for the Soko Directory website and sourcing information from clients is easy as smooth sailing. Vera can be reached at: (020) 528 0222 or Email: [email protected]

View other posts by Vera Shawiza



Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (221)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (174)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (244)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950