HassConsult’s Q3 2024 Land Price Index shows a steady increase in land prices across Nairobi’s suburbs and satellite towns, reflecting a resilient property market despite economic challenges.
Land prices in Nairobi’s suburbs grew by 1.6% during the third quarter of 2024, slightly lower than the 1.8% increase recorded in Q2. Parklands led the market with a 3.4% quarterly growth, driven by a surge in demand for both residential and commercial developments. Other suburbs like Langata, Kileleshwa, and Lavington also posted notable gains, rising 2.9%, 2.8%, and 2.5%, respectively.
According to Sakina Hassanali, Head of Development Consulting and Research at HassConsult, the top-performing suburbs reflect growing demand for high-density housing and mixed-use developments in Nairobi.
The satellite towns outpaced Nairobi’s suburbs, with land prices rising by 3.02% in Q3 2024, up from 2.24% in the previous quarter. Mlolongo saw the highest increase at 6.6%, benefiting from improved access via the Nairobi Expressway and demand for both residential and industrial land.
Thika also recorded significant growth at 6.3%, driven by upcoming infrastructure projects and a new industrial smart-city plan announced by the Kiambu County government. Syokimau, Limuru, and Mlolongo posted annual price increases of 18% to 18.5%, making them highly attractive to investors. These returns rival the performance of government bonds and stocks listed on the Nairobi Securities Exchange (NSE).
The upward trend in land prices is expected to have a positive impact on local businesses and industries. In Makueni and Kajiado counties, access to reliable infrastructure has boosted operations for companies like the National Cement Company and the Makueni Fruit Processing Plant. Enhanced power and transport networks in satellite towns are also fueling growth in the tourism and agricultural sectors, particularly in areas near Amboseli National Park.
With land prices offering attractive returns, the asset class continues to outperform other investments, including bonds, equities, and savings accounts. As the Central Bank of Kenya lowers interest rates, investors are increasingly turning to land as a stable and profitable investment option.
The Q3 2024 Hass Land Price Index highlights the sustained demand for land in both Nairobi and its satellite towns. Key drivers include infrastructure development, economic recovery, and high-density urban planning, which are reshaping the property market. The outlook remains positive, with more investors expected to enter the market as development projects progress and demand for housing increases.
