Satellite towns posted a 2.5 percent land price increase over the quarter as Nairobi saw prices improve by 0.3 percent according to the index report released by HassConsult.
The last time towns recorded similar price increases was in the third quarter of 2019 or two years ago. This was before Covid-19 came and disrupted the markets but have started gaining momentum with the economy opening up.
“Last year at the height of the pandemic we saw satellite towns record drops in tandem with Nairobi suburbs due to disruption to the economy and the accompanying uncertainty,” said Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Over the quarter, Ruaka town saw prices marginally drop by 0.2 percent, the second consecutive quarterly drop indicating that developer demand is waning on account of a wait-and-see approach.
Developers were watching on the pending uptake of major developments in the area and a lack of clarity on whether major roads will change the neighboring landscape.
“There are many developments in the area, both complete and upcoming, and developers normally will want for stocks of units to be taken up before they can continue with their plans which has an effect on prices,” said Ms. Hassanali.
Kiserian town was the best performer on a quarterly and annual basis at 5.3 percent and 18.24 while Kiambu town was the laggard on an annual basis with prices remaining static at 0.06 percent.
Spring Valley was the best performing suburb with prices increasing by 2.2 percent over the quarter as there is still demand in the area which is still not saturated having been only rezoned only a few years ago, from a purely residential area to commercial and Highrise apartment area.
Nyari posted the highest price rise at 7.18 percent. Loresho was at the tail end over the quarter at -1.32 percent while Riverside saw prices drop by 5.1 percent on an annual basis. Upper Hill land prices are now at 510 million shillings.