Subdued Q3 for Real Estate As Detached House Demand Keeps Kenya’s Property Prices On The Rise

Property price rises in Kenya were more subdued in the third quarter of 2025 than in the previous quarter, reflecting the traditional lull in August sales, but still rose by 1.1 per cent from June 2025 levels, taking the full-year rise to 8.2per cent.

The overall growth was driven by scattered spots of demand for detached houses, driving overall detached house prices up by 11.3 per cent in the year to September 2025.

“All segments of the market delivered sales price growth in the third quarter, reflecting the market’s solid foundation in cash-driven demand, but it was a subdued quarter of demand, overall, as middle-class incomes remained under pressure,” said Sakina Hassanali, Co-CEO and Creative Director at HassConsult.

The surge in detached house buying was area-specific, with prices continuing to rise significantly in the Runda, Ridgeways, Loresho, Lavington, Karen, and Muthaiga suburbs, and the Athi River, Ruiru, Tigoni, Juja, and Kiserian satellite towns, but falling in other areas in and around the city.

But, overall, the surge in house demand, which began in late 2023, slowed down in most areas, accelerating only in Athi River, Ruiru, and Tigoni – suggesting a move to better-value properties and some exhaustion of the demand in many other areas.

Rental prices, which fell by 1.6 per cent in Q3, compared to Q2, and 1.3 per cent over the year, are also being driven by changes in the detached house market, where the ending of large aid flows into the country has prompted expatriate departures that have reduced demand for rented detached houses.

However, where in previous periods of expatriate exit, from 2012, and during Covid, rising vacancies led to falling rental and sales prices as landlords exited by selling, this time, the scale of local demand for detached houses has continued to drive up sales prices, even as rentals fall. For apartments, variable price growth driven by new stock coming to market delivered overall price stability.

Rents rose most quickly in areas such as Parklands and Riverside, with Parklands rents up by 12.5 per cent in the last year, as newer rentals have driven up the average, while rents and apartment prices in Upper Hill have dipped based on older stock.

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