Kilimani and Ongatarongai land prices fall, Spring Valley tops the list

The latest index released by the real estate company shows that land prices have fallen in Kilimani and Ongatarungai. Haas Consulting.

Land values ​​in these two regions fell by 0.3% and 2.6% respectively in the quarter to June 2024.

Of the 18 suburbs analysed by HassConsult, Spring Valley had the biggest increase in house prices at 5.3 per cent. Satellite CityAmong them, Ruiru had the largest increase of 4.0%.

Land prices in satellite cities grew by 2.2%, down from 3.0% in the first quarter.

Prices in Ongata Rongai and Ngong saw a reversal of fortune this time as Juja and Limuru recorded the highest quarterly increases.

Of all the suburbs, Spring Valley had the most positive annual change at 11.9 per cent, while the satellite town of Juja had the most positive change at 20.1 per cent.

The index showed that land prices in Nairobi rose 1.8% due to increased demand for land for commercial development.

Renaissance Mountain

HassConsult noted that the increase this quarter was higher than the 1.3% reported in the second quarter of this year, partly due to the economic recovery. Going up the mountain The cost of land per acre rose 3.9%, the fastest quarterly price gain in the region in a decade.

Sakina Hassanali, head of development consultancy and research at HassConsult, said: “The recovery in Upper Hills land prices, which recorded the fastest quarterly growth since the fourth quarter of 2014, supports the current absorption of the remaining Grade A office space (which was previously oversupplied), and also supports Upper Hills’ recent successful positioning in the residential real estate sector.”

“In June 2018, the average land price in the Upper Hills region peaked at Sh560 million and valuations still have room to rise as demand for commercial and residential properties in the area continues to grow.”

In satellite towns, the index showed an average price per acre rise of 2.2%, down from 3.03% in the first quarter as some price growth hotspots showed signs of cooling.

“Increases in credit costs and construction input costs have had a negative impact on developers’ real returns, limiting their propensity to absorb higher land costs in areas with lower purchasing power,” HassConsult said in the index.

Part of Ngong and Ungatarongai The fastest growing land prices Ruiru, Syokimau and Limuru have outpaced this growth in the past three years this quarter.

Reversal of fortune

Ongatarongai was the only one of Nairobi’s 14 satellite towns to report a fall in land prices in the second quarter, at minus 2.6%.

Ms Hassanali added: “Land prices in Ongatarongai and Ngong reversed course last quarter, suggesting last year’s bullish price increases are starting to level out.”

In addition to Spring Valley, where land prices rose 5.3 per cent over the quarter, land prices in suburbs such as Lavington, Muthaiga and Upper Hill also rose.

During the period, Lavington prices increased by 4.2 per cent, while Muthaiga and Upper Hill also saw increases of 3.9 per cent each.

Of all the suburbs, only Spring Valley and Lavington recorded annual double-digit price growth, at 11.9 per cent and 10.3 per cent respectively.

However, there was greater interest in satellite towns with only three towns recording single-digit positive price changes: Thika, Tigoni and Athi River.

The remaining 11 towns all recorded double-digit annual growth rates, with Juja recording the fastest growth at 20.1%, followed by Kiserian (15.3%) and Syokimau (15.2%).

Other provinces include Ruaka (14.3%), Ruiru (14.1%), Ongataronge (14.0%), Kitengela (13.3%), Limuru (11.9%), Mlolongo (11.6%), Kiambu (10.7%) and Ngong (10.0%).