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Nairobi suburbs index shows fall in land prices over the past 12 months

By Estate Cloud - over 2 years ago - Kenya

Nairobi suburbs index shows fall in land prices over the past 12 months

Land prices in Spring Valley registered a 3.55 per cent increase over the third quarter of 2020 as the suburb continues to attract investors eyeing high-density land uses according to the Hass 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 per cent), Parklands (-8.8 per cent), and Riverside (-8.1 per cent) saw the highest price decreases year-to-date.

Riverside suburb recorded the biggest drop in land prices at 3.82 per cent while on an annual basis, Parklands lead the pack with prices reducing by 8.8 per cent.

Overall prices in the suburbs dropped by 0.94 per cent over the quarter while in the satellite towns the drop was 0.06 per cent. In the satellite towns, Rongai recorded the highest increase over both the quarter and on an annual basis at 4.71 per cent and 10.3 per cent, respectively.

An acre of land now goes for Ksh. 23.2 million on average.

Kiambu posted the biggest drops both quarterly and annually at 5.2 per cent and 7.97 per cent respectively, with the average price at Ksh 39.7 million.

Ms Hassanali said that while 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 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.

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