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List of latest prices of land in Nairobi Metropolitan Area

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Nairobi Land Prices: Cytonn Investments has released its latest list of prices for land in the Nairobi Metropolitan Area. The prices show that the the land sector recorded a price decline last year due to an overall slowdown in real estate investment during the year. Despite the rest of the zones recording a decline in asking prices, unserviced land in satellite towns such as Ruiru and Limuru registered a rise in prices.

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Below is the breakdown showing how prices of land have been rising per acre in the NMA since 2011:

LAND PERFORMANCE ACROSS ALL NMA REGIONS
Location *Price in 2011 *Price in 2015 *Price in 2016 *Price in 2017 *Price 2018/19 *Price 2019/20 8- Year CAGR 2018/19 Capital Appreciation 2019/20 Capital Appreciation ∆ in capital appreciation
Satellite Towns – Unserviced Land 9m 17m 22m 23m 24m 25m 15.8% 3.9% 3.8% (0.1%)
Nairobi Suburbs – Low Rise Residential Areas 36m 68m 79m 82m 81m 84m 11.3% (0.9%) 3.8% 4.8%
Satellite Towns – Site and Service Schemes 8m 15m 18m 15m 15m 15m 15.1% (0.5%) 0.5% 1.0%
Nairobi Suburbs – High rise Residential Areas 52m 92m 111m 117m 117m 116m 11.0% (1.6%) 0.0% 1.5%
Nairobi Suburbs – Commercial Areas 145m 359m 422m 433m 421m 419m 14.5% (2.2%) (0.7%) 1.5%
Average 13.5% (0.3%) 1.5% 1.8%
*Asking land prices

  • Land in the NMA  recorded an 8-year CAGR of 13.5% and  an overall annualized capital appreciation of 1.5%, compared to the 0.3% price correction recorded in 2018/2019, attributed to increased demand for land mainly in the low rise residential areas and satellite towns
Unserviced Land in Satellite Towns
Location *Price in 2011 *Price in 2015 *Price in 2016 *Price in 2017 Price 2018/19* *Price 2019/20 8- year CAGR 2018/19 Capital Appreciation 2019/20 Capital Appreciation ∆ in capital appreciation
Satellite Towns – Unserviced Land
Ruiru 7m 15m 19m 20m 21m 22m 16.5% 6.5% 6.2% (0.3%)
Ruaka 40m 58m 74m 77m 80m 84m 9.8% 4.0% 5.2% 1.2%
Utawala 6m 9m 10m 11m 12m 12m 9.7% 5.6% 4.1% (1.4%)
Athi River 2m 3m 4m 4m 4m 4m 10.1% 3.1% 3.4% 0.3%
Juja 3m 7m 9m 10m 10m 10m 15.3% 1.0% 3.4% 2.4%
Limuru 5m 13m 17m 20m 20m 21m 18.4% 4.5% 2.9% (1.7%)
Ongata Rongai 2m 10m 18m 18m 18m 19m 31.2% 2.2% 1.6% (0.7%)
Average 9m 17m 22m 23m 24m 25m 15.8% 3.9% 3.8% (0.1%)
*Asking land prices

  • Ruiru area recorded the highest annualized capital appreciation at 6.2%, attributed to the growing demand for land within the area as it acts as a key dormitory for Nairobi’s working population, supported by availability of amenities such as Spur Mall, industrial parks such as Tatu City and the incoming Northlands City, and improving infrastructure with plans in place for the construction of the Ruiru Sewerage Network. Key to note, Ruiru was named by Kiambu County as one of the towns in Kiambu to spearhead the county’s affordable housing rent-to-own scheme where 19,500 units are set to be put up by 2022,
  • Asking land prices in Ongata Rongai recorded the lowest appreciation at 1.6%, attributed to the reduced demand as developers focus shift to towns such as Ruiru, Ruaka and Utawala which are undergoing increased real estate and infrastructural development.
Low Rise Residential Areas 
Location *Price in 2011 *Price in 2015 *Price in 2016 *Price in 2017 *Price 2018/19 *Price 2019/20 8- Year CAGR 2018/*19 Capital Appreciation 2019/20 Capital Appreciation ∆ in capital appreciation
Low Rise Residential Areas
Karen 25m 40m 46m 52m 53m 56m 10.7% 3.4% 5.6% 2.2%
Spring Valley 64m 131m 147m 154m 148m 156m 11.7% (4.1%) 5.4% 9.5%
Runda 33m 58m 67m 68m 68m 70m 9.8% 0.2% 3.3% 3.1%
Kitisuru 32m 59m 70m 70m 71m 73m 10.8% 0.8% 3.0% 2.2%
Ridgeways 24m 51m 62m 68m 65m 66m 13.5% (4.9%) 1.8% 6.7%
Average 36m 68m 79m 82m 81m 84m 11.3% (0.9%) 3.8% 4.8%
*Asking land prices

  • Karen was the best performing sub-market with a capital appreciation of 5.6%, attributed to relatively high demand for land in the area supported by the availability of good infrastructure, proximity to amenities and the relatively low asking land prices at Kshs 56.4 mn as compared to the market average of 84.2 mn per acre,
  • Spring Valley recorded a 9.5% points increase  in capital appreciation, attributed to a growing demand for development land in the area boosted by the growth potential of the area, ease of accessibility and proximity to business nodes such as Westlands
 Serviced Land –Satellite Towns
Location *Price in 2011 *Price in 2015 *Price in 2016 *Price in 2017 *Price 2018/19 *Price 2019/20 8- Year CAGR 2018/19 Capital Appreciation 2019/20 Capital Appreciation ∆ in capital appreciation
Site and service schemes
Ruiru 8m 18m 19m 21m 23m 24m 17.5% 8.1% 5.8% (2.2%)
Athi River 2m 11m 13m 13m 12m 12m 25.6% (7.3%) 3.5% 10.8%
Ruai 8m 12m 13m 15m 14m 14m 7.4% (9.4%) 1.0% 10.4%
Thika 5m 7m 8m 10m 10m 10m 9.0% 1.7% 0.5% (1.2%)
Syokimau-Mlolongo 3m 12m 12m 12m 12m 12m 18.0% 3.5% (3.8%) (7.3%)
Ongata Rongai 7m 16m 19m 19m 19m 18m 12.9% 0.4% (3.8%) (4.3%)
Average 8m 15m 18m 15m 15m 15m 15.1% (0.5%) 0.5% (2.2%)
*Asking land prices

  • Ruiru recorded the highest appreciation rate at 5.8% attributable to the increased demand for land in the area from developers looking to cater for the mid-income and student population housing as a result of the push for individuals to move to satellite towns where housing is relatively affordable, in addition to the mushrooming tertiary institutions
  • Ongata Rongai and Syokimau recorded a 3.8% price correction each attributable to decreased demand of development land due to unavailability of trunk infrastructure thus making it less appealing to developers
  • Asking land prices in Athi River recorded a 10.8% points growth in the capital appreciation, attributed to growing demand for land fuelled by the relatively affordable land prices at Kshs 12mn per acre compared to the node’s average of Kshs 15 mn per acre, a growing focus by developers looking to venture into affordable housing as the area has an expanding industrial and manufacturing base driving demand for housing, and the  opening up of the area following its administrative role as the headquarter of Mavoko Division in Machakos County.
High Rise Residential Areas 
Location *Price in 2011 *Price in 2015 *Price in 2016 *Price in 2017 *Price 2018/19 *Price 2019/20 8- Year CAGR 2018/19 Capital Appreciation 2019/20 Capital Appreciation ∆ in capital appreciation
High Rise Residential Areas
Kasarani 32m 51m 60m 64m 61m 65m 9.2% (3.6%) 5.7% 9.3%
Dagoretti 28m 81m 95m 99m 100m 103m 17.8% 1.5% 2.5% 1.0%
Githurai 21m 37m 45m 46m 45m 44m 10.2% (0.9%) (1.4%) (0.5%)
Kileleshwa 149m 227m 286m 306m 311m 303m 9.3% 1.8% (2.6%) (4.4%)
Embakasi 33m 61m 69m 70m 66m 63m 8.5% (6.7%) (4.4%) 2.3%
Average 52m 92m 111m 117m 117m 116m 11.0% (1.6%) 0.0% 1.6%
*Asking land prices

  • Kasarani recorded an annualized capital appreciation at 5.7%, attributed to increased demand for land fuelled by affordability with the asking land prices averaging at Kshs 64.8 mn compared to the node’s average of Kshs 115.6 mn, in addition to developers looking to cater for the expanding middle-income population
  • Embakasi recorded a correction of 4.4%, attributable to reduced demand for land given the  high densification of the area making it unattractive to investors
Commercial Zones
Location *Price in 2011 *Price in 2015 *Price in 2016 *Price in 2017 *Price 2018/19 *Price 2019/20 8- Year CAGR 2018/*19 Capital Appreciation 2019/20 Capital Appreciation ∆ in capital appreciation
Commercial Zones
Upper Hill 200m 450m 512m 510m 488m 506m 12.3% (4.4%) 3.8% 8.1%
Kilimani 114m 294m 360m 387m 403m 398m 16.9% 4.1% (1.2%) (5.3%)
Westlands 150m 350m 453m 474m 430m 421m 13.8% (9.3%) (1.9%) 7.4%
Riverside 116m 343m 362m 361m 363m 351m 14.8% 0.7% (3.3%) (4.0%)
Average 145m 359m 422m 433m 421m 419m 14.5% (2.2%) (0.7%) 1.5%
*Asking land price

*Key to note the Nairobi CBD was exempted from the list of submarkets within the commercial zones, due to unavailability of undeveloped land for sale

  •  Despite the overall correction in asking land prices within the commercial zones, Upperhill recorded a 3.8% annualized capital appreciation with an average asking land price of Kshs 506 mn per acre, attributed the continued demand for land in the wake of improving infrastructure such as the ongoing Upperhill-Mbagathi way link road aimed at easing traffic congestion into the area. In addition, the area is witnessing a growing demand by developers looking to venture into differentiated concepts such as serviced apartments and offices, which thrive in the area given that it hosts expatriates, coupled by the ease of accessibility and proximity to facilities such as the Jomo Kenyatta International Airport
  • Riverside recorded a price correction of 3.3% attributed to reduced demand for development land due to the  reduced development activities on the commercial space front.

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