This archive report was first published on 20 August 2021.
Land prices in Ngong town have surged, with the latest data showing an 18.1 percent growth rate in the second quarter of 2021, the highest annual land growth rate in six years.
The average value per acre currently stands at Sh25.4 million, a significant increase from the average of 2.9 percent on all towns.
According to Sakina Hassanali, Head of Development Consulting and Research at HassConsult, the rise in land prices is attributed to a new generation of landowners who are subdividing large parcels of land, making it more affordable for speculators and developers.
“Land in Ngong was traditionally held by an old generation who owned large chunks of more than five acres with an aim of maintaining their wealth. However, we are seeing an end to this era as a new generation i.e., their heirs are keener on cashing in on this land by selling parcels. This new generation has led to an increase in the supply of subdivided of eighths and quarter parcels for sale thus making it possible for other Kenyans to own land in Ngong,” Hassanali said.
The ongoing construction of the Ngong-Suswa Road is also expected to further boost the town's land prices.
Ngong's performance is tracking that of Kiambu county, which has experienced booms over the last decade due to infrastructure development and subdivision sales.
Other satellite towns in Nairobi also saw significant growth in land prices, with Ongata Rongai coming in second with an 11.8 percent increase, and Ruaka remaining the most expensive with an average value per acre of Sh89.8 million.
On the Nairobi suburbs front, Nyari was the best performing suburb in the period with prices improving by 2.25 percent over the quarter and 6.24 percent annually, largely attributed to the installation of the Westlands Redhill Link Road.
