Nairobi land prices go through the roof

Hass Consult head of research and marketing Sakina Hassanali during the launch of the land price index at Hilton Hotel in Nairobi on January 29, 2015. PHOTO | SALATON NJAU |   NATION MEDIA GROUP

In Summary

• An acre that cost around Sh30 million eight years ago is now selling at Sh170 million, according to the latest report by Hass Consult.
• The report was produced in collaboration with Stanlib, an investment management firm.
• Upper Hill, Westlands and Kilimani neighbourhoods have recorded the sharpest rise.

By ELIZABETH MERAB
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If you are planning to buy land in any of Nairobi’s prime estates, be ready to part with nothing short of Sh200 million.

An acre that cost around Sh30 million eight years ago is now selling at Sh170 million, according to the latest report by Hass Consult.

It reveals that in the last four years, land prices have risen at twice the rate of cattle and four times the rate of property, while oil and gold prices have fallen over the same period.

In major suburbs, the prices have gone up by six times in eight years.

The price surge is fuelled by location, purpose and economic activities around the land.

Hass Consult, which has for the first time included land prices in its survey, states that the value per acre was increasing by 29.7 per cent every year.

RESTRICTED

The firm’s head of marketing and research, Ms Sakina Hassanali, said the survey was restricted to records of land offered for sale in nine suburbs.

“We chose the suburbs based on the scale of building and construction in each suburb, where development has been most intense over the period,” said Ms Hassanali.

The report was produced in collaboration with Stanlib, an investment management firm.

In Nairobi, there was more than five-fold increase in land prices over the last seven years, the report says.

Upper Hill, Westlands and Kilimani neighbourhoods have recorded the sharpest rise.

In Upper Hill, an acre of land will set a buyer Sh473.5 million back while in Kilimani, which is home to State House, an acre goes for Sh371 million.

The same piece of land will cost about Sh46million in Lang’ata and Sh45 million in Karen.

Of the city’s high-end residential areas, land is currently cheapest in Karen and Langata, at around Sh45m an acre, followed by Runda, at around Sh67m.

The most expensive high-end low density residential land is in Spring Valley, at around Sh150m an acre.

Stanlib’s, Chief Investment Officer Mr Kenneth Kaniu said the land price disparity is caused by difference in zoning.

It is also due to unprecedented growth in housing and construction of commercial buildings in the particular areas., Mr Kaniu said.