Fri. Dec 8th, 2023
Land Prices in Nairobi’s Satellite Towns Experience Significant Growth

The prices of land in Nairobi’s satellite towns have seen a considerable increase as investors flock to these areas. HassConsult’s data reveals that Ongata Rongai, Juja, Ngong, Thika, and Kiserian have experienced land price hikes of 8.2 percent, 6.3 percent, 4.2 percent, 4 percent, and 3.6 percent respectively.

Ongata Rongai has seen the highest rise, with an acre of land now valued at Sh24.4 million. In Kiserian, a similar-sized piece is priced at Sh10.1 million. Sakina Hassanali, Head of Development Consulting and Research at HassConsult, attributes the increase in land prices to improved road infrastructure. This development has attracted both commercial and residential developers to the satellite towns, providing more affordable housing solutions on the city’s outskirts.

The suburban areas of Nairobi have also experienced appreciation in land values. Langata saw the highest increase at 1.5 percent, followed by Gigiri at 1.4 percent, Ridgeways at 1.2 percent, and Upper Hill at 0.9 percent. A parcel of land in Langata costs Sh78.9 million, while the same size in Upper Hill is priced at Sh482.9 million.

According to HassConsult, Langata remains the suburb with the highest growth in land prices due to its potential for high-density development, accessibility to major economic nodes, and lower land prices compared to neighboring suburbs.

The Q3 report further indicates that property prices in Ngong, Ruiru, Kiambu, and Langata have seen growth in the past year. Rental prices for properties also saw a slight increase of 0.4 percent, primarily driven by a 3.2 percent rise in apartment rentals. Apartments in Westlands recorded the strongest price growth within the city at 3.4 percent, while Limuru experienced the highest growth among satellite towns at 3.2 percent in Q3 2023.