Half of tenants in the country have engaged their landlords to renegotiate their rent charges since the outbreak of COVID-19 in Kenya earlier in the year.
A survey conducted by HassConsult indicates that between March and June 47 percent of tenants negotiated for rent cuts of up to 30 percent as a result of reduced income due to Coronavirus Pandemic.
47 percent of the tenants surveyed asked their landlords for rent discounts of between 25 and 30 percent.
According to the index, quarter two of 2020, growth of house prices remained in the negative territory during the second quarter of 2020, at 0.2 percent characterized by a drop in apartment and detached house segments.
In the satellite towns Mlolongo led the pack with apartment rents falling by 2.6 percent over the quarter and 9.8 over the year while Kiserian and Thika saw gains of 6.7 per cent and 10 percent over the quarter and year respectively.
Apartments similarly recorded the strongest growth in rents at 2.2 percent against the overall property rents slight drop of 0.3 per cent.
Donholm suburb recorded the biggest quarterly drop in rents for houses at 4.8 percent while on an annual basis Kitisuru led the pack with rents reducing by 7.7 percent on the other hand Parklands backed the trend in the suburbs with apartments rents in the area marginally increasing by 2.4 percent over the quarter and 7.1 percent over the year.
Sakina Hassanali, Head of Development Consulting & Research says though landlords might be prevailed upon by circumstances to offer discounts, the move is not sustainable in the long haul.
HassConsult notes that, property owners and developers are exercising caution by avoiding generous discounts on properties or increasing prices as they wait to see how the economy will perform once it is fully reopened.
Houses in Muthaiga recorded the highest asking prices over the quarter at 3.6 percent while Riverside recorded the lowest drop with apartment prices marginally reducing by 2.6 percent.