This archive report was first published on 7 May 2020.
Published on May 7, 2020, the Hass House Price Index first-quarter report revealed that Kenyans still prefer apartments, even as rental prices recorded a slight increase of 0.4 per cent in the first quarter of the year.
Head of Development, Consulting and Research Sakina Hassanali noted that the current figures do not capture the full impact of Covid-19 on the property market, which remained largely depressed in 2019 due to the challenging economic environment.
However, a majority of Kenyans who entered the market in the first quarter of 2020 opted for apartments, with rental prices in Nairobi suburbs experiencing a mixed trend.
While rental prices remained unchanged in Lavington, Kilimani, and Parklands, they dropped in Kileleshwa, Lang'ata, Riverside, Upperhill, and Westlands.
On the other hand, Ngong rental prices increased by 6.4 per cent, while Kiambu, Kitengela, and Mlolongo remained cheaper options for renters.
According to Hassanali, uncertainties and depressed appetite forced home sellers to reduce asking prices of their properties, making it cheaper to purchase a house in certain areas.
For instance, those who favour detached and semi-detached housing found it cheaper to purchase one in Tigoni than Loresho, whose prices went up 3.6 per cent in the last quarter.
Overall, it is more expensive to purchase a house in Ridgeways than Juja, with the latter recording a 9.3 per cent slump in sales while Ridgeways property sale prices surged.
Hassanali predicted that in the next quarter, rental prices and asking prices are likely to adjust downwards as the populace deals with reduced incomes, although the change may not be huge due to the insulation of land and property against short-term shocks.
