Demand for Semi-detached Homes High in Kenya -HassConsult

Semi-detached Homes  are Kenya’s most sought-after properties  according to Hass Residential Price Index for the fourth quarter of 2017.

“There was a sustained demand for semi-detached housing, against a generally sluggish property market in the year,” said Ms. Sakina Hassanali,  Head of Development Consulting & Research.

Asking prices for apartments fell 1.1 per cent in the quarter while semi-detached houses continued at the same pace of positive growth, recording a further 3.4 percent rise in the quarter, allowing annual growth to remain in positive territory at 1.8 percent by December 2017, bucking market trends as detached houses and apartment turned negative.

During the period, rental prices for semi-detached houses recorded a positive growth in asking rents at 1.4 per cent in the final quarter while asking rents for all properties fell by 1.2 per cent in the quarter and overall fell by 3.9 per cent in the year.

Highest rental declines were reported in Upperhill at 9.4 per cent attributed to the growth of Upperhill as a commercial hub leading to a reduction in supply of new residential houses leaving a high concentration of old stock to let…”that partly explains the fall in rent prices in the area in the 3 months to December and an average drop of 11.7 per cent in the year.”

“Investors earned 6.66 per cent total returns  on let apartments in 2017, the lowest yields since September 2010. Similarly, a new landlord recorded 7.36 per cent in returns on let semi-detached houses down from 21.1 per cent in 2016,” added Sakina.

According to Hass Property Index 2017, land prices in Nairobi’s suburbs increased by 3.32 percent while asking prices in satellite towns increased by 5.43 per cent. The lowest price appreciation of the asset since the index was launched.