Nairobi land prices have risen five-fold since 2007
Nairobi’s most expensive land is in Upper Hill, at around Sh470m per acre, followed by Kilimani at around Sh370m an acre
Land prices in Nairobi have risen five-fold over the last seven years, according to a report released Thursday, appreciating by 535 per cent from 2007.
The cause of the drastic increase in land prices is attributed to commercial and high-density housing in the city.
For instance, an acre of land that cost around Sh30 million in 2007 is currently costing Sh170 million, according to a report by HassConsult Real Estate firm.
The report says land ‘is the best performing form of investment’ in Nairobi compared to other asset types including property and cattle.
“The index, which compares Nairobi’s land price movements to other asset classes and commodities, found that the city’s land had outperformed all other asset classes as a return on investment,” said Felix Gichaga from Stanlib, a partner organization.
The prices are too high for individual buyers, leaving organization, institutions, investment groups and companies to buy prime lands in the Nairobi suburbs and near the city centre.
Upperhill is the most expensive location in the city where an acre is going for Sh470 million, followed by Milimani where an acre goes for Sh370 million.
Here is a sample of current land prices in nine leafy suburbs of Nairobi where the research was conducted.
- Upperhill-Sh470 million
- Kilimani-Sh370 million
- Westlands- 360 million
- Kileleshwa-250 million
- Lavington-200 million
- Springvalley-140 million
- Runda-60 million
- Karen – 40 million
- Lang’ata-40 million
According to HassConsult Head of Research and Marketing Ms Sakina Hassanali, the nine suburbs have witnessed unprecedented growth in housing and construction of commercial buildings, a situation that has caused land prices to hit the rooftop.
PRICES IN EASTLANDS
But there are other factors that have contributed to this trend which include zoning and accessibility, availability of infrastructure and general desirability of lands within the same suburbs.
According to the report, land prices are expected to rise go up in the Eastlands on the completion of the expansion and construction of the Outer Ring road, just as it happened with the construction of Thika Superhighway.
“Urban land has delivered the highest return of all asset classes in the last seven years followed by property by 98 per cent from 2007,”
At the same time, Embakasi was named the estate where rent prices went highest in 2014, with an increase of 31 per cent, followed by Kileleshwa at 27.9 per cent and Lang’ata at 24 per cent.