HassConsult head of development consulting and research Sakina Hassanali.[Photo/Nation]Land prices in Nairobi took such a slow pace especially last in a decade, due to the prolonged electioneering last year amid a slowing economy and lack of access to credit.
Realtor HassConsult states that in the 2017 quarter four price index report that land price in Nairobi suburbs only increased by 3.3 per cent while that of satellite towns was up by 5.4 per cent, both the slowest since the index began in 2007.
HassConsult head of development consulting and research Sakina Hassanali indicated of the slowdown in price growth brought out that the value of land is not immune to political risk of which it had been seen as a safe haven investment whenever there was political or economic uncertainty.
“Land has traditionally defied political risk which is short term but the repeat poll introduced a new level of risk which had not been priced in the market.”
The price of land in the past five years has stabilized in the suburbs as to satellite towns because in times of uncertainty the satellite towns tend to be affected more.
The index report states that the best performing suburb was Donholm at 12.2 per cent because of the near completion of the new Outer Ring Road that has enhanced effective transport.
Among satellite towns, Kitengela recorded the highest price increase at 16.6 per cent due to the improved infrastructure and relatively affordable land compared to other satellite towns.
On rental yields and house prices, the asking prices for houses on average dropped by 4.1 per cent during the year.