Major towns on the outskirts of Nairobi city continue to experience a rising rental trend, according to the latest report on real estate investment.
The towns – which include Thika, Ruiru, Ongata Rongai, Ruaka and Kitengela – have recorded an average rental increase of 2.1% on the lower side and up to 26.5% on the higher side, between the third quarter of 2018 and a similar period in 2019.
The report by Ritz Housing and Properties Ltd covers one-bedroom to three-bedroom units.
Kitengala rent rates
Ritz Housing and Properties Managing Director Samuel Mathenge attributes the rising rentals trend in these Nairobi metropolitan towns to various factors including high walkability score, good access to public transport and the high number of open businesses.
In Kitengela, the monthly median rental price for a one-bedroomed house stood at Ksh15, 000, an increase of 8.45% from the third quarter of 2018.
The monthly cost of a two-bedroom house stood at approximately Ksh25,000, an increase of 10% while three-bedroom house cost went up by approximately 5.40% to an average monthly median rental price of Ksh39,000.
“The level of income of Kitengela residents does not support mortgaging thus making them opt to rent. Also, due to the rise of living standards, the number of rentals is on the rise, thus making the market trend of Kitengela favourable,” Mr. Mathenge said.
“The rise in population requires an increase in housing thus growth of the rental market in Kitengela,” he added.
Rongai trending high
In Ongata Rongai, the monthly mean price of a one-bedroom rental stood at Ksh9,500. This was an increase of 2.15% between quarter three of 2018 quarter and same quarter 2019.
For a two-bedroom house, the mean monthly rental price was approximately Ksh22,000, a 4.56% increase, while a three-bedroom house rent stood at Ksh35,000, a 2.941% increase compared to the same quarter previous year.
Thika town’s steady rent growth
In Thika Town, the monthly mean rental price for a one-bedroom house stood at Ksh15,000, which is a 25% increase. In the two-bedroomed rentals, the monthly mean rental price was approximately Kshs1,000, an increase of 5% compared to the previous quarter of 2017. While the three-bedroom rental prices stood at approximately Ksh35,000, a 2.94% increase.
“Thika Town experienced a relatively steady rental price growth between July 2018 and July 2019, a rate slightly below other satellite towns within the Nairobi Metropolitan area, “Mr Mathenge noted.
In Ruiru, lower rents
In Ruiru, the monthly mean rental price for a one-bedroom house stood at Kshs12,000. This was a 9.09% increase between the third quarter of 2018 and 2019. In the two-bedroom, the prices stood at approximately Ksh18,000 which was an increase of 5.88% compared to the previous quarter of 2018.
On the other hand, the three-bedroom rent stood at approximately Ksh30,000, an increase of 15.38% compared to the previous quarter.
In Ruaka, the monthly mean price of a one-bedroom rental stood at Ksh24,000, which is an increase of 10.0% between the third 2018 quarter and 2019. In the two-bedroom rentals in Ruaka, the mean monthly rental price stood at approximately Ksh34, 000. This is an increase of 5% compared to the previous quarter.
The three-bedroom houses rentals, on the other hand, stood at Ksh48,000 which is an increase of 2.13% compared to the previous quarter.
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