This archive report was first published on 25 July 2019.
Published on July 25, 2019, a report by HassConsult revealed that landowners in Nairobi's satellite towns were enjoying better sales due to improved road infrastructure.
According to the Second Quarter Land Price Index report, Kitengela controlled a 19.1 percent market share of the properties on sale, followed by Ruiru at 15.1 percent, Thika at 9.4 percent, and Ongata Rongai and Ngong tying at 7.9 percent.
‘Demand for land in satellite towns pushed up prices by 3.2 percent with buyers favouring properties going for below Sh15 million an acre compared to Nairobi’s suburbs that asked for higher prices for land and developed properties,’ said Sakina Hasanali, head of research and development at HassConsult.
She noted that low access to affordable credit continued to hurt uptake of land and housing units within Nairobi’s suburbs and satellite towns, and that any intervention to facilitate re-opening bank credit is a key motivation for Kenyans to acquire properties via loans.
‘Land and houses are viewed as a major investment vehicle that Kenyans have found reliable. For instance, Sh1 million invested in buying an acre of land in Nairobi’s satellite towns a decade ago is now worth Sh8.81 million compared to Sh2.29 million invested in property (Nairobi’s suburb), Sh2.64 million (bonds), Sh1.35 million (savings) and a paltry Sh490,000 in equities,’ she said.
The ongoing construction of the Nairobi-Ngong road and the Westlands-Gachie link has helped open up the areas for development of apartments, prompting a 23.2 percent and a 13.2 percent increase in rental price in the past year.
