The infamous Kilimani suburb continues to cool as investors go slow on the area due to uncertainty on whether the present infrastructure will support the new wave of developments the area is now attracting, thus weakening its appeal.
This is according to the Hass Land price indices for the fourth quarter of 2021, which reveal that Kilimani recorded a 0.9 percent drop over the quarter, the third consecutive drop of the year while on an annual basis the suburb recorded a 1.1 percent drop.
“A few years ago, it was the exception for a residential building to have a lift but today it is the norm. The new developments are high-density units including studio apartments which is a shift from the ample apartments and detached houses that characterized the suburb a decade ago and it is not clear if the present infrastructure will adequately cater for all stock coming through,” said Ms Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
The research shows that both the suburbs and towns maintained mild upward growth over the last months of the year. Land prices in the suburbs increased by 0.34 percent over the quarter while in the satellite towns growth stood at 1.4 percent.
The consistent, albeit mild, increase in land price reflects the general economic recovery that was witnessed during the year.
Spring Valley was the best performing suburb over the quarter and annually with land prices recording a 5.6 percent and 10 percent respective increase.
Donholm had the lowest growth in land prices among the city’s suburbs, having recorded a 2.7 percent drop in the last quarter of 2021.
In the towns, Kiserian posted the strongest growth over the quarter and annually with asking prices increasing by 5.2 percent and 19 percent respectively. Kiserian town’s low entry point relative to its peers continues to make it attractive to speculators.
Limuru land prices recorded a 2.34 percent drop over the quarter while Ruaka saw prices marginally drop by 1.22 percent.
Annually, Nairobi land prices increased by 1.16 percent while the suburbs recorded a 6.65 percent increase.
Asking prices for properties increased by 3 percent over the quarter, driven by detached houses which improved by 4.9 percent.
Semi-detached and apartments were static dropping by 0.1 and 0.03 percent respectively.
Houses in Westlands were the best performing among the suburbs with a 3 percent return while in the towns, Ngong emerged top with a 3.5 percent.
Detached houses accounted for 52 percent of the housing market in 2001 but by the end of 2021, this share had reduced to 9.5 percent, resulting in increased prices as buyers compete for these scarce units.
House prices in Runda retreated by 0.9 percent while Tigoni saw prices reduce by 1.9 percent.
Gigiri has the most expensive properties with the average housing commanding an average of Ksh122 million price tag.
Rents remained static at 0.2 percent with houses in Ridgeways recording a 2.5 percent increase while apartments in Ruaka recovered with a 4.5 percent appreciation over the quarter.