Nairobi’s Upper Hill is still the most expensive area to buy land in the city, despite a marginal drop in landprices in most of the capital’s suburbs.
Land in Upper Hill costs Sh511.3 million on average per acre, from Sh509.5 million in December last year, shows the Hass property Index quarter one report 2016, released on Monday.
Kilimani is the second most expensive city suburb to buy land, an acre going for an average Sh425.7 million up from Sh420.5 million.
An acre in Westlands costs an average Sh391.1 million, an increase from Sh388.9 million in quarter four last year. Ann acre in Parklands costs about Sh380.2 million making it the fourth most expensive area to buy land, despite a drop from Sh386.3 million an acre last year.
Kileleshwa caps the top five most expensive areas to buy land in the capital, with an acre averaging Sh259.3 million, despite a drop from Sh265.2 million in December.
The index by HassConsult indicates that land values in Nairobi’s 18 major surbubs dropped marginally by 0.2 per cent between January and March, “attributed to a shift into satellite towns by land investors”.
The highest fall in the period under review was experienced in Eastleigh, an acre going for an average Sh256.9 million, from Sh277.8 million in December.
Other areas which recorded a notable price drop were Ridgeways, Muthaiga, Lavington, Nyari, Lang’ata, Kitisuru and Gigiri, though some remain among toppriced areas.
An acre in Lavington has an average price of Sh216.1 million down from Sh218.1 million as of December, while in Gigiri it costs Sh204.3 million from Sh208.4 million.
At Muthaiga, an acre is averaged at Sh108.1 million, down from Sh108.6 million in December while an acre at Nyari is worth an average Sh104.6 million, a drop from Sh106.8 million last year.
Land prices at Kitisuru dropped by an average 0.8 per cent with an acre asking for Sh74.1 million compared to Sh74.7 million in December.
Areas where land prices increased include Spring Valley where an acre is averaged at Sh143.3 million up from Sh141.4 million in December. An acre at Loresho is averaged at 77.4million up from Sh77 million in December.
At Runda, an acre has gone up from Sh74.3 million in December to Sh77.1 million.
“Land acquisition in Nairobi now consists primarily of developers keen to build high-density residential, commercial and retail properties that yield development profits,” said Sakina Hassanali, Hass Consult head of research and marketing.
“The profits are secured by the sustained demand for property by home owners and investors alike.”
In contrast to a price drop in city suburbs, land prices in 14 satellite suburbs rose by 1.1 per cent in the first quarter of 2016.
Ruaka tops the most expensive area among satellite suburbs where an acre is asking for Sh59.6 million. An acre at Kiambu is going for an average Sh36.8 million, Mlolongo Sh26.8 million,Tigoni Sh18.7 million and Ngong Sh17.5 million, making the top five expensive areas.
“Accessibility of satellite towns is driving their prices up coupled by a shift ininvestment where people are now moving to invest outside the city,” said Hassanali.
– The Star