Rental demand in Nairobi's satellite towns has shifted, with Ruaka maintaining its dominance while Ngong and Kitengela emerge as new growth areas, according to a recent report.
A 2021 analysis by HassConsult revealed that apartment rental demand in Ngong and Kitengela rose 5.5% and 5.2% respectively in the first quarter of 2021, compared to Ruaka's 2.9% increase. Ruaka accounts for 30% of all advertised apartment units in satellite towns, the report stated.
Sakina Hassanali, head of development consulting at HassConsult, attributed Ruaka's continued appeal to its proximity to affluent suburbs, which supports high-density apartment development. "Ruaka offers working populations affordable housing with reduced transportation costs," she said.
While overall property sales prices rose 2.89% in Q1 2021, apartment rental prices showed mixed trends. Asking rents increased 2.2% quarterly, lifting overall rental prices by 1%, though detached house rents remained stable. The report noted 4.3% growth in detached house demand and 11.8% annual growth.
Newer areas like Spring Valley, Nyari, and Kitisuru saw 4.2%, 3.9%, and 2.7% demand growth respectively, driven by improved access via the Redhill Link road.
Hassanali warned that the proposed Landlord and Tenant Bill, 2021 could impact rent trends. "Similar laws like the 2016 Banking Act had unintended consequences," she cautioned, noting investors are monitoring potential effects on rental markets.
