A section of the expanded Ngong Road. FILE PHOTO | NMG
Rental property prices in Ngong town increased the
highest in the past one year due to ongoing developments of roads
linking the satellite town to Nairobi.
According to the Hass Property Index(HPI), over the last year, rental price increased with 18.6 percent.
HassConsult’s
Head of Development Consulting and Research Sakina Hassanali said
Ngong’s positive development was proof that investments in public
infrastructure around Nairobi was a major impetus for private
developments in the real estate sector.
“Nairobi’s
residential areas are filled to capacity with landlords charging hefty
rental fees. They lack essential facilities while Nairobi roads are a
nightmare to drive along during peak morning and evening hours,” she
said.
Ms Hassanali added that Ngong’s new properties
attracted new tenants due to their low charges as investor-developers
maintained low rental prices to attract tenants.
The Hass Property Index said Ngong’s performance overshadowed
the fast growing Kitengela town with a six percent rate in property
sales and a 7.1 percent drop in rental prices mainly blamed on a surplus
owing to massive property investments in the industrial town.
An acre of land in Ngong now costs Sh21.5 million, a four percent rise in the past year.
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