The value of land within Ngong in the outskirts of Nairobi has increased the most—at 18 per cent—with an acre of land going for Kes25.4 million from Kes21.5 million a year ago.
Second quarter report on property prices from realtor HassConsult shows Ngong area land prices are being influenced by a new generation of landowners who are keen on unlocking value by subdividing huge inherited chunks of land and selling smaller parcels in subdivision sales.
Additionally, Ngong is benefitting from the ongoing construction of the Ngong-Suswa Road which will further open the town.
The trend in Ngong is following the path in Kiambu County which have experienced booms over the last 10 years due to a combination of new infrastructure networks, and subdivision sales which have made the land very attractive for speculation buyers.
In Ruaka, Kiambu County, the asking price of an acre of land is Kes89.8 million on average, competing neck and neck with other upmarket suburbs such as neighbouring Runda (Kes89.3 million), Kitisuru (Kes90.7 million) and Ridgeways (Kes74.9 million).
“Select areas within the suburbs and towns, are being favored by proximity and these places opening up, which in turn is attracting developer and speculator interest and thereby improving asking prices,” said Ms Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
In the Nairobi suburbs, Nyari was the best performing area with land prices going up by 2.25 per cent in the three months to June and 6.24 per cent in the last 12 months.
The uptick in land prices in Nyari was largely attributed to the construction of Westlands Redhill Link Road that has opened access to the suburb to Nairobi’s commercial hub Westlands.
In the 12-month period, land in Mlolongo, where the eastern end of the expressway starts recorded a double-figure increase of 11.1 per cent with an acre now going for Kes30.8 million on average.
In neighbouring Athi River area, HassConsult said the average price of an acre of land went up by nine per cent to Kes14.8 million.
Land buyers would however pay the highest for an acre of land in Nairobi’s commercial hubs of Upperhill and Westlands at an average of Sh507 million and Sh426.3 million respectively.
For a similar size of land in Kilimani one would part with Kes415 million while buyers eyeing Parklands would be set back Kes379.8 million per acre.
Compared with other investment vehicles, Kes1 million invested at the end of 2007 would have been worth Kes9.25 million if invested in land in either Limuru town, Tigoni, Ruaka, Kiambu, Ruiru or Juja.
Other satellite towns where your Kes1 million would have been worth Kes9.25 million if invested in land in 2007 according to realtor HassConsult would be Thika, Ngong, Ongata Rongai, Kiserian, Syokimau, Mlolongo, Athi River or in Kitengela town.
Further, analysis by HassConsult shows Kes1 million invested at the end of 2007 would have been worth Kes3.02 million if invested in bonds and Kes1.46 million if invested in savings and only Kes350,000 if channeled into equities.