HassConsult today unveiled the results of its property price indices for the second quarter of 2021, revealing that asking prices for the property remain stagnant at a negligible 0.1 percent drop in the quarter.
The property market is experiencing static sales price-performance driven by the oversupplied apartment market in Kilimani and Kileleshwa, down 9.5 percent and 6.9 percent respectively in the last year.
While most suburbs in and out of Nairobi reported somewhat mild movements, both up and down, Houses in Langata posted atypical property price movements of an increase of 4.1 percent in the quarter and 10.3 percent in the year in a market that is currently driven by affordability. Langata posts the cheapest price point for city houses at Kshs. 34.5m.
‘At a time when economic stagnation has largely riddled the middle market with salary cuts, unemployment and small business burnout, properties with lower ticket prices but still within the city are becoming an attractive investment.’ said Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Apartments in this suburb that average a price of Kshs. 11.2m – almost half the city average – also registered a 4.4 percent annual growth, twice the growth rate of the next best suburb, Lavington.
On the rental front there was a mild improvement of 1.1 percent over the quarter as the market slowly shows moves to recovery. This was heavily backed by the increase in rental prices of detached houses up 3.4 percent in the quarter, symptomatic of the people within large international and multinational organizations who continue working from
home and whose elimination of mobility costs have enabled higher housing budgets.
However, affordability still appears to be driving the apartment rental market. Riverside Drive, a suburb that registers the highest apartment rents at an average Kshs. 170,200 saw the highest rent price corrections at a loss of 2.8 percent in the quarter, while Langata whose average apartment rents are half the next best option registered a 2.9 percent
increase over the quarter and 12.9 percent over the year.