In a recent report released by the real estate firm Hass Consultant, connectivity to road transport emerged as a significant catalyst for housing prices.
Sakina Hassanali, Head of Development Consulting and Research at Hass Consult, explained that improved road infrastructure has been instrumental in sustaining price growth in various areas, including Ngong, Mlolongo, Athi River, Thika, and Syokimau.
This improved infrastructure has attracted both commercial and residential developers to satellite towns, alleviating congestion in the city while offering more affordable housing solutions on the city’s outskirts.
The report revealed that land prices experienced significant gains, with Ngong leading at 21.3%, followed by Thika at 18.1%, Athi River at 13.5%, Lang’ata at 12.1%, and Syokimau, Loresho, Spring Valley, and Mlolongo at 11.9%, 11.1%, 10.6%, and 10.1%, respectively.
In the housing segment, property owners in Ngong saw the highest increase in property asking prices at 14.7%, followed by Ruiru at 11.8% and Kiambu at 10.8%.
The report encompassed a wide range of residential classes, including standalone and semi-detached properties. Standalone property prices decreased by 3.1% in the three-month period ending in September, while semi-detached prices dropped by 8.6% during the same period.
Notably, standalone property prices experienced the sharpest decline in Runda, Spring Valley, Kitsuru, and Westlands, with decreases of 10.9%, 10.6%, 9.5%, and 9.4%, respectively. Despite the decrease in standalone property values, the apartment market remained resilient.
Sakina noted, “The apartment market is witnessing a price resurgence, driven by renewed demand for inflation-beating investment assets in a period when the Kenyan Shilling is losing value.”
Looking at the broader perspective, the real estate sector faces challenging times due to rising inflation and increased taxes in the country. T
he report highlighted that “high interest rates negatively impacted market liquidity, affecting demand for owner-occupied real estate during the quarter, primarily consisting of detached and semi-detached homes.”
