Land in Nairobi: Prices Continue to Skyrocket among Satellite Towns

The prices of land within Nairobi and its environs has continued to rise within the years with now investors focusing more on satellite towns.

Land asking prices recorded an overall 1.4 percent on a quarter-to-quarter increase attributable to stabilization of the political environment.

Satellite Towns outperformed Nairobi suburbs recording a 2.4 percent quarter-quarter appreciation rate against a 0.3 percent on quarter-to-quarter increase in asking prices recorded in Nairobi Suburbs.

The performance in satellite towns is attributable to the fact that land prices in Nairobi suburbs are driven mainly by demand from developers and not speculators unlike the satellite towns,

For suburbs, Gigiri was the best performing suburb, with asking prices increasing by 4.8 percent due to increased housing demand for high-end housing in the area by the UN, Embassies, and diplomats, and increased office space developments in the area. Kilimani was the worst performing with the asking price declining by 1.9 percent.

For satellite towns, Juja was the best performing town with asking prices increasing by 7.7 percent driven by relatively affordable prices at an average of 12.0 million shillings per acre compared to areas such as Ruaka at an average of 85.2 million shillings per acre and speculation.

Mlolongo was the worst performing satellite town, recording a drop in asking prices by 3.4 percent attributable to the traffic congestion along Mombasa road hence unattractive to potential clients.