Houses in Lang’ata recorded the highest increase in sale prices among all Nairobi suburbs in the three months to March as the overall property market stayed on a recovery path from the economic fallout of the Covid-19 pandemic.
The latest data by Realtor HassConsult shows that sale prices of property in Lang’ata rose by 5.9 percent in the quarter to March — the highest among all the suburbs of the city.
House sale prices in Lang’ata also recorded the highest year-on-year growth at 17.5 percent—solidifying its credentials as the most sought-after area among buyers.
The high demand for housing property in Lang’ata to lower prices compared to other middle-income suburbs, the area’s proximity to the city centre, and the elaborate transport links to key thoroughfares including the Southern by-pass, Lang’ata Road, the Nairobi Expressway, and the newly completed Lang’ata-Kibra link road.
Other suburbs with strong growth in house sale prices in the quarter to March included; Kilimani (4.4 percent), Nyari Estate (2.7 percent), Gigiri (2.3 percent), and Muthaiga (2.1 percent).
In terms of year-on-year growth, other city neigbhourhoods have also posted strong growth in house sale prices including; Muthaiga (10.4 percent) and Nyari Estate (9.9 percent).
On rental prices, the Hass property price indices for the first quarter of 2023 show that in the first three months of 2023, Loresho had the highest increase (3.8 percent), followed by Nyari Estate (3.5 percent) and Muthaiga closing the top three at 2.9 percent.
On the other hand, Donholm Estate saw the largest drop in rental prices during the quarter at 6.2 percent, followed by Kileleshwa whose rental prices dropped by 1.8 percent between December 2022 and the end of March.
The realtor observed that the performance of the market was mixed within different property segments during this period, with semi-detached houses sales prices dropping by 2.4 percent, as apartments and detached houses on their part saw prices slightly increase by 0.8 percent and 0.7 percent.
“It is worth noting that detached homes now account for only 7.5 percent of the market, down from 28 percent in 2016 and over 50 percent in the early 2000s, while apartments' market share grew to 64.4 percent and semi-detached homes increased to 28.1 percent during the same period,” said Ms Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
The realtor notes that over the last 20 years, demand for detached houses has outpaced, resulting in an increase in sale prices.
Over the past year, the area has had house prices rise by 17.5 percent, while rental prices for apartments have grown by 12.8 percent, the HassConsult report shows. The report adds that apartment sales prices in the first quarter of 2023 alone increased by 6.1 percent.
HassConsult’s data also shows that the average sales price for detached houses has reached Sh48.7 million, while semi-detached homes are currently selling for Sh30.2 million. “The average sales price for apartments is Sh15.07 million.”
While on average the rental market experienced a decline of 0.5 percent over the last quarter, and a decrease of 1.2 percent over the past year, Langata was also among areas where an increase in rental prices was recorded for all houses (1.3 percent).
“However, rental price trends in the satellite towns, are bucking the trend. Nearly all towns posted positive growth on apartment rental pricing highlighting the increasing occupancy rate of apartments targeted at renters with a monthly budget between Sh25,500 and Sh50,000,” the Hass property price indices note.
It said that apartments located in satellite towns recorded average rental returns of 3.4 percent over the quarter and 9.0 percent annually.
