Kenyans Go Ham On Buying Properties In Nairobi Satellite Towns, Leading To A Sharp Price Increase

by Business Watch Team
IndigoHomes

Nairobi’s satellite towns grew at the fastest pace in two and a half years, on rising demand due to more affordable prices.

Overall property prices rose by 2.45 per cent in the quarter, compared to growth of 0.8 per cent in the fourth quarter of 2024, while annual price growth stood at 4.9 per cent, compared to 5.2 per cent in the previous quarter.

In Nairobi’s satellite towns, asking prices rose by 2.4 per cent, with Juja and Limuru standing out with gains of 4.2 and 4.0 per cent, respectively. All 10 surveyed towns reported price appreciation across all properties.

In contrast, property prices in Nairobi’s suburbs contracted for a fifth straight quarter, albeit by a slimmer margin of 0.4 per cent compared to 0.8 per cent in the fourth quarter of 2024.

“The overall price rebound was mainly driven by higher asking prices on property in Nairobi’s satellite towns, which led to growth of 2.4 per cent,” said Ms. Sakina Hassanali, Co-CEO & Creative Director at HassConsult.

“The improvement of infrastructure and amenities has given satellite towns the convenience that was previously the preserve of suburbs, but at a lower average price point of KES 14.46 million per unit compared to KES 32.46 million in the suburbs, putting them within reach of a larger buyer pool.”

Rental prices across all properties edged up by 0.3 per cent in the period, marginally higher than the growth of 0.2 per cent for the previous quarter. Similar to the trend is the sales segment, asking rents in Nairobi’s satellite towns outperformed the suburbs in appreciation.

Led by Ruiru, Ngong, and Limuru, with rental price growth of 5.3 per cent, 5.1 per cent, and 4.9 per cent, respectively, the towns saw their quarterly rents go up by 1.9 per cent on average. Improving economic conditions, including stable and low inflation, allowed landlords in satellite towns to raise average asking prices.

The city’s suburbs, meanwhile, reported their first asking price contraction in two years at -0.8 per cent, which was weighed down by declines in asking prices in Muthaiga (-4.9 per cent), Nyari (-4.7 per cent), & Kilimani (-4.6 percent).

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