Some 14 Nairobi estates recorded a decline in rental prices in the last three months, a new report by real estate company, HassConsult shows.
The Hass Property price indices for the second quarter of 2023 indicate that demand for property declined during the period owing to the high cost of living.
“Economic uncertainty pegged to rising costs, prospects of higher taxation and a higher cost of financing has resulted in reduced consumer confidence stalling speculative demand on real estate,” reads the report in part.
Average property rental pricing went up marginally by 0.1 percent in the quarter. This was backed by a renewed demand for rental apartments, which sustained their growth trend on affordability going up 1.8 percent in the quarter while the demand for houses reduced falling 0.5 percent in the same period.
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Some estates, however, experienced a decline in rental prices during the period. The estates that were most affected by rental falls were upmarket city suburbs. Upperhill, Parklands, and Kileleshwa recorded the highest rent decline by 12.6 percent, 10.6 percent, and 8 percent, respectively.
Others are Kilimani (5.6 percent), Lavington (5.1 percent), Kitusuru (3.1 percent), Runda (2.7 percent) and Westlands (2.3 percent).
Satellite towns that recorded the highest drop in rental prices are Kiambu (4.4 percent), Athi River (3.4 percent), Limuru (3.2 percent), and Juja (3.1 percent).
Areas that experienced a jump in rental prices during the period under review are Kitengela, Ongata Rongai, Ruiru, Lang’ata, and Ngong. The jump was attributed to increased demand for housing in satellite towns.
