News and Analysis
November 21, 2024
Land prices increased by 1.6% in the third quarter of 2024 compared to the second quarter, which grew by 1.8%. In a report released by Hass Consult, land value increased due to developers investing in high-density housing projects in Nairobi’s suburbs.
In Nairobi’s satellite towns, prices rose by 3.02%. The rising demand for new developments made the land appreciate. In Nairobi, the market saw a significant bump after 26 periods of growth at less than 1%.
Parklands had the highest growth rate at 3.4% where prices increased to Ksh434,200,000 per acre. This growth was pushed by a surge in commercial and residential projects.
Read Also: Rent in Upmarket Nairobi Estates Falls as Kenyans Move Away from the City - Report
Other areas that experienced significant land price increases are Kileleshwa and Langata due to their attractiveness for mixed-use developments. Kileleshwa prices increased by 2.8% to Ksh303,200,00 per acre while Langata prices increased by 2.9% and are now at Ksh85,500,00.
Incoming infrastructure development projects increased land prices in Nairobi’s environs. Mlolongo had the highest third-quarter land price increase by 6.6% to Ksh43,200,000 per acre. This is as a result of the easier access to the city through the Nairobi Expressway. Thika followed by a 6.3% increase, due to the county government’s plans to convert the town into an industrial smart city. Land is now retailing for Ksh. 28,600,000 per acre.
Other satellite towns like Kiserian experienced growth of 4.3% to Ksh11,800,000 per acre. This is because many of Nairobi’s environs experienced land price surges due to a steadier annual growth rate than returns from shares and bonds in the Nairobi Stock Exchange.
Areas like Syokimau and Limuru had higher annual growth rates at 18% and 18.1% respectively. Syokimau plots now retail at Ksh36,600,00 per acre while Limuru land prices are at Ksh23,900,000. The Central Bank of Kenya cut the rates for bonds down to 12% from around 15%.
Read Also: What the US Fed's Rate Cut Means for the Kenyan Businesses and the Economy
These are the highest-appreciating areas in Nairobi by annual rates.
These are the highest-appreciating areas in Nairobi’s satellite areas by annual rates.
Developers are rushing in to invest in land anticipating high demand for residential and commercial properties. This shows that land is a great asset even in times of economic uncertainty like the June 2024 riots and high interest rates.
Read Also: Money Confessions: When Friendship Costs You More Than You Bargained For
.png){kind=small}
Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.
