BUSINESS

Karen, Runda, Riverside Lead Record Land Price Growth in Nairobi

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White 2-storey house near trees. PHOTO/Pexels
White 2-storey house near trees. PHOTO/Pexels
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Nairobi’s land market continued to register strong prices at the end of 2025, with some of the city’s most expensive neighbourhoods showing steady growth as demand from affluent buyers remains high.

According to the latest HassConsult Land Index data, land values in prime areas stayed at historically elevated levels in the fourth quarter of 2025.

The HassConsult Land Index is published quarterly and tracks land price movements in 18 key Nairobi suburbs and 14 satellite towns. It draws on thousands of transaction data points and price listings, helping investors, developers and homebuyers understand where land values are rising or falling across the capital region.

HassConsult says the index has become a core tool for analysing the Kenyan property market and guiding investment decisions.

In Q4 2025, an acre of land in Karen rose by about 3 per cent to around Ksh 76 million. In Runda, prices increased by roughly 2.9 per cent to Ksh 101.1 million per acre. Riverside remained the most expensive among these suburbs, with an acre valued at Ksh 369.2 million after a 2.4 per cent quarterly gain.

“Land price growth in 2024 and 2025 has been the strongest we have experienced in Nairobi in a decade, driven by a chase for high-end locations for development,” said Sakina Hassanali, Co‑Chief Executive Officer of HassConsult.

Despite ongoing strength, not all Nairobi suburbs saw gains in the final quarter. Muthangari posted a 0.8 per cent drop, with an acre valued at Ksh 397.5 million, and Westlands declined 0.3 per cent to Sh502.7 million per acre. Another suburb, Ridgeways, was the only one among the 18 to record an annual land price decline for 2025, albeit slight, before rebounding in Q4.

Across Nairobi’s suburbs overall, annual land price growth eased to roughly 5.9 per cent, with quarter‑on‑quarter gains of about 1.3 per cent still among the strongest sustained increases in a decade. Analysts say this reflects persistent interest in areas perceived to offer stable development potential and premium lifestyle appeal.

In surrounding towns, the picture was mixed. Ruiru led gains among satellite markets with a 3.4 per cent rise to Ksh 39.4 million per acre, and Juja grew 3 per cent to Ksh 26.3 million. However, Athi River and Syokimau recorded slight price declines of 0.4 per cent and 0.2 per cent, respectively, indicating a cooling in some formerly fast‑growing outer markets.

The index shows that while the broader land market remains at long‑term highs, growth rates vary by location, buoyed in core suburbs by wealthy and developer demand, but softer in some satellite areas influenced by economic and financing pressures.

 

 

 

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