The latest data released by HassConsult indicates a notable surge in land prices within Nairobi’s peripheral towns, capturing the attention of savvy investors seeking lucrative opportunities in these regions. Notably, Ongata Rongai, Juja, Ngong, Thika, and Kiserian have experienced remarkable increments of 8.2 percent, 6.3 percent, 4.2 percent, 4 percent, and 3.6 percent, respectively, in their land values.
This upward trend in land prices is attributed to the enhanced connectivity and infrastructure development, particularly evident in areas like Ngong, Mlolongo, Athi River, Thika, and Syokimau. The improved road networks have acted as magnets, drawing both commercial and residential developers to these satellite towns. This influx has not only alleviated the congestion burden in the city but has also provided viable solutions for more affordable housing on the outskirts of Nairobi.
Among these satellite towns, Ongata Rongai stands out with an acre of land commanding a price tag of Sh24.4 million, whereas Kiserian offers a relatively affordable option at Sh10.1 million per acre.
Shedding light on suburban areas, Langata experienced the most significant appreciation, with land prices increasing by 1.5 percent. Following closely are Gigiri at 1.4 percent, Ridgeways at 1.2 percent, and Upper Hill at 0.9 percent. Langata, in particular, continues to lead due to its potential for higher density development, easy accessibility to key economic hubs such as the CBD, Upperhill, and Mombasa Road, and a comparatively lower price per acre compared to neighboring suburbs.
Furthermore, the Q3 report highlights growth in property prices in Ngong, Ruiru, Kiambu, and Langata over the past year until September. The rental market has also seen positive growth, with a 0.4 percent increase in the quarter. Apartments have been at the forefront, witnessing a substantial rise of 3.2 percent in rental prices during the same period. Particularly, Westlands emerged as a hotspot for apartment rental price growth within the city, experiencing an uptick of 3.4 percent. In satellite towns, Limuru led the pack with a significant growth rate of 3.2 percent in Q3 2023.
The burgeoning land and property prices in Nairobi’s satellite towns and suburban areas underscore the region’s attractiveness to investors. The strategic development initiatives and improved connectivity have played pivotal roles in driving these trends, making these areas not only profitable for investors but also providing viable housing options for the growing population.