Land prices in Upper Hill rise by Sh17.5m in three months
In Westlands an acre is costing Sh405.1 million, Sh403.7 million in Parklands, 286.1 million in Kileleshwa and the same portion in Eastleigh is averaged at Sh263.4 million
Average cost for an acre in Upper Hill, Nairobi’s financial services district, rose by Sh17.5 million in three months.
This is the latest property index by HassConsult revealed yesterday, underlining the high demand for property.
The quarterly report shows the asking price for an acre rose to Sh534.5 million in three months through September, from Sh517million in the previous quarter ending June, retaining it’s position as the most expensive area to buy land.
Kilimani was the second most expensive city suburb, despite a 0.8 per cent drop compared to the second quarter of the year. An acre is costing Sh426.7 million compared to Sh430.3 million previously.
Other expensive areas are Westlands (Sh405.1 million per acre), Parklands (Sh403.7 million) Kileleshwa ( 286.1 million) while Eastleigh is the sixth most expensive areas where an acre is averaged at Sh263.4 million, despite being a 1.9 per cent drop from Sh268.5 million.
Land prices in Nairobi’s satellite towns, according to the report, rose by seven per cent with Juja, Limuru and Ruiru continuing to benefit from planned infrastructure projects including the Eastern Bypass and the proposed commuter rail.
Land in Juja recorded the highest growth at 14.5 per cent with an average asking price of Sh10 million, up from Sh8.7 million in May.
However, Ruaka remains the most expensive satellite town where the asking price for an acre averages Sh74.7 million, a 9.3 per cent rise from Sh68.3 million in the April-June period.
Kiambu comes second at Sh40.5 million up from Sh38.7 million. Others are Mlolongo (Sh23.3 million), Ruiru (Sh21.3million), with Limuru coming fifth at Sh19.4 million per acre. The report shows property prices generally increased by 1.2 per cent quarter-on-quarter, with asking prices for houses in the city’s satellite towns growing fastest in three years at 21.4 per cent over the year, the highest growth rate in the last three years.
Market players have expressed confidence that the capping of interest rates will drive more investment into the real estate.
“The capping of interest rates will have a twin effect on the property market by making credit to developers more affordable which in turn will reduce the cost of units,” HassConsult head of research and marketing Sakina Hassanali said.
Hass Consult research and marketing manager Sakina Hassanali at the release of Hass property first quarter report in Nairobi on April 27