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Land Investments Returns Remain One of the Highest Among Asset Classes

By Estate Cloud - over 2 years ago - Kenya

Land Investments Returns Remain One of the Highest Among Asset Classes

Land investments still fetch the highest returns in Kenya over the long-term, more than other asset classes.

According to the latest release of the Hass Land Price Index, Ksh. 1 Million invested at the end of 2007 would have been worth KSh. 9.01M if invested in land in Nairobi Satellite-14, an increase of 901% over the period.

The same amount would have grown by 624 % if invested in land in Nairobi Suburbs-18, and 238% if invested in property according to the Hass Property Sales Composite Index.

The data by Hass Consult shows that land in Nairobi Satellite-14 areas (index value of 900.8) outperformed Nairobi Suburbs-18 which had an index value of 624.3, Gold 234.4, Live Cattle (CME) 119.2 and Crude Oil with just 54.1 index value. The average value for land has gone from 2.4 million in December 2007 to 22.0 million in December 2020.

The Nairobi Satellite-14 Land Index is representative of Land for Sale in 14 Satellite towns outside Nairobi suburbs.

Land value in Nairobi’s satellite towns rose sluggishly over the last quarter of 2020 at 0.35 per cent according to the index, while registering an unprecedented fall of 1.1 per cent over 2020 compared to a 6.93 per cent rise in 2019.

In 2020, the highest annual price falls in land value was experienced in Parklands at 7.35 per cent over 2020 followed by Riverside at 7.2 per cent while Muthaiga recorded the highest annual increase in land prices with 3.91 per cent increase.

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