THE STATE OF REAL ESTATE IN KENYA

Prices of land in Kenya are quite high and are likely to continue growing in the next foreseeable future. According to Hass Consult indices, property prices shot up in the last quarter of financial year 2014 by 2.4 percent. All segments in the property as well saw an increase in prices in the last quarter. Prices for rental houses also continued to rise by 4 percent from the previous quarter.

Land as a property holding continued enjoy to high prices especially in the urban areas. The price has shot up from 30 million shillings in 2007 to an average of 170 million shillings per acre per acre. The most expensive low density high end residential lands are in Spring Valley where an acre of land will cost around 150 million per acre. The major factors influencing the prices of land are infrastructure, accessibility and desirability on top of the returns on assets.

Some of the high development activity suburbs in Nairobi according to Hass Consult include Upperhill, Kilimani, Westlands, Kileleshwa, Lavington and Spring Valley. In all these suburbs, the prices of land on average are more than 100,000,000 million Shillings. In Upperhill, an acre of land on average sells at 473,500,000 shillings, this is followed by Kilimani where an acre will sell at an average of 371,700,000 shillings followed by Westlands at 361,700,000 shillings.

There is still a ray of hope for investors who have not yet accumulated such amounts or found means to raise it. In the other towns around Nairobi, the picture is different. Prices are relatively low compared to Nairobi. Several low price residential estates are now being constructed around along Mombasa Road. These areas are set to experience high prices once various government projects reach maturity. Konza City (Konza Technopolis Development Authority) has attracted attention of investors to Athi River and Kajiado regions. A proposed Textile City is also set to Athi River Kenya starting from July 2016. Two notable brands (PVH and VF corporations) have already pumped in funds into the project

The best advice if you are wishing to buy or build your own home or if you wish to invest in the real estate in Kenya is to buy and begin right now. Prices are not likely to come down soon.