Land prices in Kenya’s coastal towns have skyrocketed by as much as 70pc as the region experiences a post-covid demand for work and leisure oriented properties.
Hass Consult’s Coastal Land Price Index shows that the prices of land in the region rose fastest in five years when compared to a period before 2020.
According to the firm, Diani,Watamu, Lamu, and Bamburi recorded some of the highest levels of growth nationally, with land prices rising between 56 and 79pc between the fourth quarter of 2020 and the fourth quarter of 2025.
HassConsult Chief Executive Officer Sakina Hassanali said the new index which covers twelve coastal towns from Lamu in the north to Diani in the south found the fastest price growth in beaches.
“The most valuable coastal land is within one kilometre of the beachfront, which would limit it to around 536 square kilometres of land if we used it all. This is already 23pc less land than the county of Nairobi, which covers around 696 square kilometers,” said Hassanali.
Land prices in Diani rose by 79.1pc between Q4 of 2020 and Q4 of 2025, while Watamu prices jumped by 70pc.
The index shows that the intensive development of Nyali delivered coast region’s highest average price per acre at Ksh 114 million compared to Ksh 91.3m in Mombasa City.
The firm says while land prices have slowed in Nyali since 2020, investor interest has moved to areas of outstanding natural beauty at lower premiums.
Land prices in coast region have also been sustained by the growing international tourism arrivals especially to the region triggering demand for hotel development as others scout for land to establish permanent residency.
“Long-term, about a third of tourists who holiday in and fall in love with an area develop dreams of, one day, having their own place there. A significant percentage of those then go ahead and actually buy, and sometimes move, or sometimes run those second homes as holiday homes,” added Hassanali.
The index further shows that areas with narrower beaches, less accessibility, fewer lifestyle facilities, but still distinct beauty had price growth averaging 40pc since the end of 2020,with resorts expanding in and around Kilifi Town, Kikambala, and Mombasa City.
On the other hand areas such as Vipingo and Malindi had a growth of 25pc over the same period owing to poorer aesthetics and facilities.
