Nairobi’s satellite towns, regarded in some quarters as the working class bedrooms have continued to lead the recovery in property prices.
According to the Hass Land and Property index which highlights advertised selling prices and rentals, house prices in Ngong recorded the biggest price jump between January and March this year at six per cent.
Other satellite towns with notable house price gains include Ongata Rongai, Kitengela and Kiserian.
On the rentals front, Athi River posted a 7.2 per cent rise in the monthly yields with house rental prices in Ngong and Juja rising by 2.7 and 2.9 per cent respectively.
On average, all properties recorded a 2.8 per cent jump in sales prices as valuations continue to improve off the effects of the COVID-19 pandemic.
Meanwhile, land in Thika recorded the largest quarterly jump at 6.35 per cent where an acre now costs Ksh.21.5 million.
Other towns with a notable rise in prices include Kitengela, Juja, Ruaka, Tigoni and Syokimau.
According to Hass Consult Head of Development Consulting and Research Sakina Hassanali, towns such as Thika, Juja and Ruiru have benefited from sitting along the universities pipeline.
“Students, the teaching fraternity and ancillary services providers are looking for quality houses that will also reduce their transportation costs and commuting times. Developers are therefore investing in putting up modern student housing that will cater to this demand which has translated into higher land prices on these strategically located towns,” she said.
Property prices gains in towns such as Ruaka have meanwhile been linked to easy access to suburbs residents which has helped drive up valuations with land parcels mostly used to develop high density dwellings such as apartments.
Ruaka for instance holds the most expensive parcel of land in Nairobi’s ‘bedroom towns’ at Ksh.92 million per acre.
On average, land prices lifted by 2.17 per cent in the first quarter in comparison to a marginal 0.11 per cent lift in the suburbs.
