Kenyan Homebuyers Find Bargains in Estates with Dropping House Prices
The latest property index from HassConsult has brought some surprising news for those looking to buy a home in Kenya.
The index reveals that there has been a significant drop in house and apartment prices in various estates, which is good news for many Kenyans who have been struggling with the rising cost of living. Several well-known estates, including Kilimani, Lavington, Muthangari, Parklands, Riverside, and Upperhill, have experienced a decline in house prices. Similarly, apartment prices in Westlands, Spring Valley, Runda, and Kitisuru have also seen a decrease. Even satellite areas like Limuru and Kitengela have witnessed a reduction in prices.
When comparing figures from the last quarter of 2022, the decrease in house and apartment prices in these estates is quite significant. Upperhill leads the way with a 9.2% annual decrease, followed by Riverside at 5.6%, Kitisuru at 4.6%, Westlands at 3.6%, and Runda at 3.2%. Other areas like Lavington, Parklands, Spring Valley, and Kilimani have also experienced varying degrees of decline. However, it's worth noting that Limuru houses saw a 3.4% annual price change, while Kitengela apartments had a 5.9% annual increase. Despite the current decrease in prices, the long-term trend shows that property values have been steadily rising since 2000.
Ongoing development projects and improved infrastructure have been attributed to recent changes in property prices. According to recent statistics, property prices have experienced a modest increase of 1.48% in the last month, a 4.09% rise in the last quarter, and a 2.50% surge in the last year. Over time, the average value of properties has skyrocketed from Ksh7.1 million in December 2000 to Ksh34.9 million in December 2023. For those interested in buying property, the report reveals that a 4-6 bedroom house typically costs around Ksh38.7 million, while a 1-3 bedroom property has an average price of Ksh12.9 million.
Comments (4)
And why not? Land and property prices in Kenya have been artificially inflated in the last few years to the extent that they now exceed the prices in the United States mid West, driven by the hoarding of land by a few privileged individuals in a country where poverty is rampant and the average income is a tiny fraction compared to the United States. The reality is catching up with the hoarders and those who are investing in land and property for speculative reasons. The bubble has burst.
Undeveloped land cost more than the building. Weird and not right. Land needs taxed or cities built right with infrastructure to spur real estate development. Septic tanks are everywhere in towns and no paved streets for residential
The whole article is a joke. In the 2022/2023 Not a single property in those areas reduced their prices. All the developments in Nairobi up-markets experienced increase in prices. Wish Hass Consult had identified any property with price drop. For an article like this one to be useful, author need to review real contracts signed. This is manual work, will take time to build such a database. Sorry guys, prices are going up everywhere in NBO and infact all Kenya. If you've extra cash, buy now, don't wait for a drop in price.
It’s weird how some real estate in Kenya is more expensive than in some States in the US, when you consider a lack of reliable electricity, water, road network, security, sewer service, etc!
The diaspora, in the quest of investment in real estate, has inadvertently caused the astronomical increase in real estate value in Kenya!
Unfortunately, they are getting an inferior product, all factors considered; safe for the nostalgia of owning property in their motherland!