Nairobi land prices index covering the cities suburbs shows that the cluster of locations included in the suburb index saw prices fall over the past 12 months to date.
Land prices in Spring Valley registered a 3.55 percent increase over the third quarter of 2020 as the suburb continues to attract investors eyeing high-density land uses according to the Hass land price index.
“Spring Valley has traditionally been characterized by stand-alone units with ample space but gradually we are seeing the suburb open up to high-density use including apartment and office blocks,” said Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Loresho (-6.0 percent), Parklands (-8.8 percent), and Riverside (-8.1 percent) saw the highest price decreases year-to-date.
Riverside suburb recorded the biggest drop in land prices at 3.82 percent while on an annual basis, Parklands lead the pack with prices reducing by 8.8 percent.
Overall prices in the suburbs dropped by 0.94 percent over the quarter while in the satellite towns the drop was 0.06 percent.
In the satellite towns, Rongai recorded the highest increase over both the quarter and on an annual basis at 4.71 percent and 10.3 percent, respectively. An acre of land now goes for Ksh. 23.2 million on average.
Kiambu posted the biggest drops on both quarterly and annually at 5.2 percent and 7.97 percent respectively, with the average price at Ksh 39.7 million.
Ms. Hassanali said that while Nairobi’s land prices eased in the quarter, the marginal drop shows that land continues to show its stability over other asset classes.
“We have not seen a major drop in land values despite the challenges such as COVID-19 and the tough economic environment proving that investors still see this as the best bet over the long-term,” she said.
Upperhill still has the most expensive land prices in Nairobi with an acre in the suburb going for Ksh 512 million on average followed by Westlands at Ksh 421.4 million and Kilimani at Ksh 411.9, while in the satellite towns Ruaka has the most expensive land at Ksh 89 million per acre.