According to the Q2’2023 Hass Consult Land price index report, the land prices for Nairobi Suburbs and Satellite towns stagnated during the quarter, with the average land prices at Kshs 193.9 million and Kshs 26.2 million, respectively, in June 2023.
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The Nairobi suburbs recorded a slight decline of 0.15 in land prices during the second quarter of 2023 compared to the first quarter of 2023, thus leading to an annual change of 1.2% from the second quarter of 2022. On the other hand, land prices in the Satellite towns increased by a mere 1.2% from the first quarter of 2023, leading to an annual change of 5.4% from the second quarter of 2022.
During the same period, specific areas within Nairobi suburbs saw varied performance in land prices. Langata, Loresho, and Donholm witnessed the highest increase in land prices, recording 3.9%, 2.5%, and 2.2% growth, respectively. However, areas like Nyari, Upperhill, and Lavington experienced the highest decline in land prices, with decreases of 1.8%, 1.6%, and 1.3%, respectively.
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For Satellite towns, the performance was mainly driven by rising land prices in areas such as Thika, which experienced a 5.8% increase. Mlolongo and Ngong also saw significant growth, with a 4.7% increase each. However, Juja, Limuru, and Ruaka experienced declines in land prices, with drops of 4.4%, 3.4%, and 1.1%, respectively.
Hass Consult further observed that Satellite towns outperformed Nairobi suburbs regarding land prices, largely due to the strict development density regulations in the suburbs. These regulations limit the development potential of the areas, thereby influencing the fluctuations in property prices.
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