Asking rents in Nairobi’s main suburbs dropped by 0.3 percent in the third quarter of this year with apartments accounting for the biggest drop.
This is according to the Hass Property Index which indicates this drop was precipitated by uncertainty in the market brought about by the heightened political activity. Both tenants and investors have adopted a wait and see approach.
The ongoing political temperatures have had a major impact on Kenya’s property market with both investors and tenants taking a cautious approach in their decisions.
Both asking rents and property prices in the period of July to September this year recorded a 0.3 percent and a 1.7 percent drop respectively as sales momentum move back to the pre-election period.
Amidst the subdued market, there were pockets of growth particularly in suburbs closer to diplomatic zones with Gigiri being the best performing suburb up by 4.8 percent followed by Muthaiga.
Moreover land prices in Nairobi reported a marginal increase of 0.4 percent in asking prices which had a negative effect on property prices in the city suburbs.
With investors postponing investments decisions as Nairobi’s 14 satellite suburbs await clarity on land laws from the new county governments, Kiambu was the most hit following an introduction of new plans by the county government aimed at regulating land use to boost food production.
Within the county, Limuru recorded the highest drop in land prices at 5.7 percent followed by Juja at 5 percent and Ruiru at 3.5 percent.