Kiserian, Juja, and Athi River have recorded the fastest growth in land prices among Nairobi satellite towns over the past year as ongoing and proposed infrastructure developments attract land speculators and housing developers.
The HassConsult property index for the fourth quarter of 2021 shows the price of an acre in Kiserian has shot up by 19 per cent over the past year to Sh9.1million on average, followed by Juja at 14.7 per cent to Sh16.6 million and Athi River at 13.5 per cent to Sh15.8 million.
“In the towns, Kiserian posted the strongest growth over the quarter and annually with asking prices increasing by 5.2 per cent and 19 per cent respectively. Kiserian’s low entry point relative to its peers continues to make it attractive to speculators,” Ms Sakina Hassanali, HassConsult’s head of development consulting and research said.
Juja and Ruiru have gained in recent years from the ease of access brought about by the expansion of the Thika superhighway, as well as the proposed rapid bus transit system, while Limuru land prices are being driven up by the ongoing construction of the Western Bypass.
HassConsult reports that land prices for the satellite town of Nairobi, in general, have gone up at a faster pace of 6.65 per cent compared to the suburbs, where prices have grown by 1.16 percent in the past year.
The survey showed that Spring Valley, Langata, and Nyari posted the highest rise in land prices among Nairobi suburbs in the past year. Land prices in the three suburbs grew by 10, 6.1, and 5.9 per cent respectively.
“The consistent, albeit mild, increase in land price reflects the general economic recovery that was witnessed during the year” the report said.
Notably, Kilimani continues to cool as investors go slow on the area due to uncertainty on whether the present infrastructure will support the new wave of developments the area is attracting, weakening its appeal.
“A few years ago, it was the exception for a residential building to have a lift but today it is the norm. The new developments are high-density units including studio apartments which is a shift from the ample apartments and detached houses that characterized the suburb a decade ago and it is not clear if the present infrastructure will adequately cater for all stock coming through,” Ms Hassanali said.
Kilimani recorded 0.9 per cent drop over the quarter, the third consecutive drop of the year, and a 1.1 per cent annual dip.
Donholm had the lowest growth in land prices among the city suburbs, having recorded a 2.7 per cent drop in the last quarter of 2021.
