Landowners and housing property owners in Nairobi satellite towns continued to enjoy better sales due to improved road infrastructure.
Realtor, HassConsult’s Second Quarter Land Price Index report shows Kitengela controlled a 19.1 percent market share of the properties on sale followed by Ruiru at15.1 percent, Thika 9.4 percent with Ongata Rongai and Ngong tying at 7.9 percent.
“Demand for land in satellite towns pushed up prices by 3.2 percent with buyers favouring properties going for below Sh15 million an acre compared to Nairobi’s suburbs that asked for higher prices for land and developed properties,” said head of research and development Sakina Hasanali.
She observed low access to affordable credit continued to hurt uptake of land and housing units within Nairobi’s suburbs and satellite noting any intervention to facilitate re-opening bank credit is a key motivation for Kenyans to acquire properties via loans.
“Land and houses are viewed as a major investment vehicle that Kenyans have found reliable where Sh1 million invested in buying an acre of land in Nairobi’s satellite towns a decade ago is now worth Sh8.81 million compared to Sh2.29 million invested in property (Nairobi’s suburb), Sh2.64 million (bonds), Sh1.35 million (savings) and a paltry Sh490,000 in equities,” she said.
Ms Hassanali said ongoing construction of the Nairobi-Ngong road and the Westlands-Gachie link has helped open up the areas for development of apartments prompting a 23.2 percent and a 13.2 percent in rental price increase in the past year.