Land Prices In Nairobi Edge Up Slightly In 3 Months

by Business Watch Team

Land prices in Nairobi’s suburbs increased by 0.4 percent in the quarter and by 0.8 percent in the year. Land in the city showed signs of price recovery with only three out of the eighteen suburbs witnessing a price fall in quarter three, compared to fourteen in the previous quarter.

Recovery of land prices is heavily attributed to the resurgence of development activity post-Covid-19. Land in Nairobi’s satellite towns, however, was quicker to rise, up 2.7 percent in the third quarter of 2023 and 6.3 percent annually.

The growth in price of land in satellite towns was almost 7-fold that of land in the city, bolstered by improved infrastructure and affordability opening it up to a wider demand base.

Ongata Rongai was a front runner in quarterly price growth at 8.2 percent, displacing quarter two leader Thika as developers anticipate improved access due to the resumption of the dualling of the Bomas-Rongai-Kiserian road.

Ngong had the highest increase at 21.3 percent over the year to September 2023, followed by Thika at 18 percent and Athi River at 13.5 percent.

“Improved road infrastructure has maintained price growth in Ngong, Mlolongo, Athi River Thika, and Syokimau by attracting both commercial and residential developers to the satellite towns with the benefit of easing the strain of congestion in the city while providing more affordable housing solutions on the city fringe,” said Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.

Langata remained the suburb with the highest land price growth on higher density development potential, easy access to major economic nodes (CBD, Upperhill, Mombasa Road), and lower land price per acre compared to neighboring suburbs.

Related Content: Prices Of Detached Houses Fell By 1.7% In The Quarter

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