Analysis of land and property prices in and around Nairobi done by real estate firm HassConsult in the fourth quarter of 2024 found that the tough economic environment has impacted the real estate sector.
Land prices in Nairobi’s satellite towns registered a modest 1.9 per cent increase in the fourth quarter of 2024, the slowest rate of growth in over 18 months. The subdued performance was driven by economic headwinds and elevated interest rates.
Thika and Mlolongo experienced the steepest deceleration, with price growth dropping from 6.3% and 6.6% to 0.9% and 1.1% in the fourth quarter, respectively.
Conversely, land prices in Nairobi’s suburbs recorded a slight improvement, growing by 1.7% in the fourth quarter compared to 1.6% in the third. Parklands led the price appreciation at 3.4%, followed closely by Upper Hill at 3.3%, Spring Valley at 3.1%, and Kileleshwa at 3.0%.
Property sales prices rose by 5.2 per cent in 2024, doubling the growth rate of 2.5 per cent in 2023. Detached houses led the market with price growth of 7.5 per cent annually, while semi-detached houses and apartments exhibited a mixed performance.
Ridgeways and Loresho led suburban annual price gains for houses at 12.5 and 11.6 per cent, while Juja topped the satellite towns with 12.9 per cent annual growth.
However, annual rental prices were effectively flat at -0.02 per cent for 2024, reflecting the challenges landlords faced in raising rents amidst tough economic conditions.
