What are the prices for 1/8 of an acre in towns around Nairobi?
This can be partly revealed by a report by real estate firm Property Reality Company that tracks changes in land prices across several locations on the outskirts of Nairobi.
Data from this report was conducted through a combination of mystery visits to real estate firms, brokers, individual sellers & a review of property prices from several online resources. Demand for property is on the rice. This is majorly driven by an increasing middle class who have a very high disposable income and the rural urban migration across major town centers which places a lot of strain on the limited land available. The price increase is also influenced by land being a relatively less risky investment.
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Prices for 1/8 of an acre: The breakdown
On average, the value of land increased by 17 per cent during the two periods under review. Ruaka recorded the highest price increase of 125 per cent with 1/8th of an acre retailing at an average price of Kshs. 18,000,000/= up from Kshs. 8,000,000/=. This was followed by Kiserian and Utawala at 42 per cent and 32 per cent respectively.
Additional research conducted by PRC, where 660 respondents in Nairobi were surveyed shows that cost is a critical consideration factor in the purchase of land across all LSMs (Low, Mid & High). Consequently, 81 per cent of all land selling firms allow installment purchase with the 82 per cent of the companies allowing up to 6 months payment terms. In addition, firms have partnered with financial service providers in order to advance credit to potential buyers at affordable rates.
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