Satellite towns around Nairobi city are predominant when it comes to land and housing property sales with Kitengela at the forefront as Second Quarter Land Report shows.
The Second Quarter Land Price Index report revealed by Realtor shows that Satellite towns are enjoying better sales of Land and property due to improved infrastructure.
Kitengela grabbed the top spot with a 19.1 percent market share of the properties on sale. Ruiru town sits at second with 15.1 percent of the market share, Thika third with 9.4 percent. Ongata Rongai and Ngong tied at 7.9 percent.
“Demand for land in satellite towns pushed up prices by 3.2 percent with buyers favoring properties going for below Sh15 million an acre compared to Nairobi’s suburbs that asked for higher prices for land and developed properties,” said Sakina Hasanali, Realtor’s head of research and development.
Sakina Hasanali pointed out that most Kenyans in the Nairobi suburbs still find it hard to acquire properties due to low access to affordable credit. Hasanali further suggests that re-opening bank credits would motivate most Kenyans to acquire properties by using loans.
“Land and houses are viewed as a major investment vehicle that Kenyans have found reliable where 1 million shillings invested in buying an acre of land in Nairobi’s satellite towns a decade ago is now worth 8.81 million shillings as compared to 2.29 million shillings invested in property (Nairobi’s suburb), 2.64 million shillings (bonds), 1.35 million shillings (savings) and a paltry 490,000 shillings in equities, ”Hasanali said.
Improved infrastructure is also key to the development of real estate as Ms. Hasanali opines. Road constructions, for example, have opened up several areas for the development of apartments.
In the past year, a 23.2 percent and a 13.2 percent in rental price increased linked with the ongoing construction of the Nairobi-Ngong and the Westlands-Gachie roads.
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