Revealed: Areas with biggest jump in land prices – Business Daily
Land prices in Nairobi’s surrounding counties of Juja, Kiserian, Syokimau, Tigoni, and Ruiru recorded the highest jump among suburbs last year. PHOTO | ARTIST IMPRESSION
Land prices in Nairobi’s surrounding counties of Juja, Kiserian, Syokimau, Tigoni, and Ruiru recorded the highest jump among suburbs last year on the back of residential and commercial developments, and expansion of public infrastructure.
HassConsult, which conducts a quarterly property pricing index in Kenya, said on Thursday that land prices in the satellite towns have touched all-time highs due to continuous investor demand for new space for development and investment.
Juja, where an acre goes for an average of Sh18.5 million, recorded a 20.91 percent annual increase while Kiserian where the same size attracts Sh9.8 million saw a jump in prices by 18.7 percent during last year.
Syokimau recorded a 15.4 percent price jump in the year with an acre going for Sh25.9 million on average while Tigoni posted a 15.1 percent jump in prices. The average price of an acre in Tigoni goes for Sh29.5 million.
Ruiru recorded a 14.5 percent price jump in 2021. The average price of an acre of land in Ruiru goes for Sh28.5 million.
HassConsult linked the land price jump in the satellite towns to emerging opportunities in retail, manufacturing, and logistics needed to serve the rapidly urbanising towns as well as the capital city.
Investments in infrastructure over the last few years have further encouraged these new opportunities, it added.
“We have witnessed a resurgence in land activity in the satellite towns attributed to an expansion of services in the wider Nairobi area, owing to infrastructure upgrades, a growing population as well as the influx of international interests looking to create a regional base in Nairobi,” said Sakina Hassanali, head of development consulting and research at HassConsult.
Juja and Ruiru have gained in recent years from the ease of access brought by the expansion of Thika Highway, as well as the commuter rail. Several industries, international schools, and retailers have also expanded in the areas attracting a pool of professionals requiring high-grade housing.
Tigoni is a small town in Limuru, 30 kilomtres from Nairobi. The town was developed by white farmers who resided in Limuru during the colonial era. Tigoni for instance hosts the Tilisi mixed-used development project with both residential and commercial zones.
Ruiru hosts the Kenyatta family owned Northlands City in Ruiru, an area that has also benefited from the Sh40 billion dualling of the Eastern Bypass.
Housing has been one of Kenya’s fastest-growing sectors over the past decade, fuelled by a growing middle class, with real estate having one of the highest long-term returns among the major asset classes.
This has fuelled a boom in land transactions. Nairobi and the surrounding satellite towns have seen the biggest price gains.