Overall land prices in the suburbs posted a modest 0.2 percent increase over the quarter while the satellite towns saw a 1.5 percent rise.
Overall land prices in the suburbs posted a modest 0.2 percent increase over the quarter while the satellite towns saw a 1.5 percent rise according to a report released by Hass Consult.
Prices in Nairobi commercial zones dampened as low office space demand has added to an already existing glut. Riverside suburb which is characterized by a high density of office space recorded the biggest drops at 1.68 percent over the first quarter of 2021 and 7.1 percent over the year.
Ngong led the satellite towns with prices increasing by 6.07 percent over the quarter and 16.04 percent annually. Kiambu saw prices drop both over the quarter and annually by 2 percent and 12.6 percent respectively.
Land prices in Nairobi suburbs that are characterized by highly commercial zones softened as developers have gone slow in these areas due to low demand for office space.
Riverside recorded the biggest drop in land prices over the quarter and on an annual basis at 1.7 percent and 7.1 percent respectively. Nyari was the best performing suburb over the quarter with prices increasing by 2.2 percent while annually Donholm topped at 3.7 percent.
Overall, the suburbs recorded a 0.2 percent increase over the quarter but a 1.48 percent drop annually. Ngong town led on both the quarter and annually at 6 percent and 16 percent respectively as the town’s attractiveness continues to be enhanced by the ongoing investment in infrastructure.
Kiambu was at the tail end over the quarter and annually with falls of 2 percent and 12.6 percent respectively. Satellite towns saw a 1.50 percent increase in the first quarter of 2021 and a 0.58 percent raise annually.
The Mix is a measure of the percentage that each suburb represents in the market for 18 Nairobi suburbs.
Land in Donholm took up 0.5% of the market, Gigiri 0.4%, Karen 29.8%, Kileleshwa 3.8%, Kilimani 7.4%, Kitisuru 3.9%, Langata 3.9%, Lavington 11.5%, Loresho 2.0%, Muthaiga 1.8%, Nyari 1.9%, Parklands 3.1%, Ridgeways 2.4%, Riverside 1.5%, Runda 13.4%, Spring Valley 1.7%, Upperhill 3.2% and Westlands 7.9% respectively.