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

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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.

/ENOS TECHE

Hass Con­sult re­search and mar­ket­ing man­ager Sak­ina Has­sanali at the re­lease of Hass prop­erty first quar­ter re­port in Nairobi on April 27

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