Nairobi residential property prices rose by 2% in second quarter of this year, according to Residential Property Price Index (RPPI) and Inflation latest statistical release by the Kenya National Bureau of Statistics(KNBS), dated 30th September 2026.
The average price of residential properties increased by 2.2% between Q2 2025 and Q2 2026, driven by a 3.1 percent rise in standalone house prices.
In the second quarter of 2026, the overall RPPI was 120.29 compared with 117.73 in the second quarter of 2025.
The RPPI measures the average change in residential property prices over time. Â It measures pure price change by controlling for variations in property characteristics.
This ensures that the index reflects actual market price movements rather than changes arising from differences in the types of properties available in the market.
The base period for the RPPI is 2022 (2022=100) and covers two main residential dwelling categories: apartments which includes flats and duplexes, and stand-alone houses which include maisonette, bungalows, townhouses, and villas.
The RPPI is compiled using the Rolling Window Time Dummy Hedonic (RWTDH) method and residential property asking price data collected from quarterly surveys of real estate agents, developers and property advertisements.
The RWTDH models property prices as a function of their characteristics and isolates pure price change.
In the second quarter of 2026, the index for apartments in Nairobi Upper and Nairobi Other strata increased to 96.9 and 119.4, from 92.5 and 109.0 in the second quarter of 2025, respectively.
On the other hand, the index for apartments in Nairobi Middle and Other Regions strata decreased from 87.4 and 121.4 in second quarter of 2025, to 86.4 and 111.6 in second quarter of 2026, respectively.
The decrease in the indices reflects easing in prices of apartments in these strata.
With respect to standalone houses, the index for Nairobi Upper and Nairobi Other strata increased from 130.2 and 145.2 in the second quarter of 2025, to 136.0 and 164.9 in the second quarter of 2026, indicating increase in prices of standalone houses over the review period.
Nairobi Middle and Other Regions strata recorded easing in prices for standalone houses between the second quarter of 2025 and the second quarter of 2026.
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