Land prices in satellite towns neighbouring Nairobi have hit an all-time high due to increased investor demand for new land for development and investment.
Data from real estate research firm HassConsult shows land prices in Juja, Kiserian, Syokimau and Tigoni rose by an average of 17.1 per cent in one year.
In the first quarter of 2022, all the 14 satellite towns saw prices increase by 4.1 per cent posting historic highs in asking land rates, with the exception of Athi River and Limuru.
Even so, prices in Athi River went up 4.1 per cent in the first quarter following the commencement of Expressway operations. An acre is now going for Sh15.8 million, up, 2.60 fold from six million in 2012.
HassConsult noted that emerging opportunities in retail, manufacturing, and logistics on the city’s periphery have driven demand high in most satellite towns.
Sakina Hassanali, head of development consulting and research at HassConsult said the demand arose from the need to serve the rapidly urbanising towns as well as the capital city.
"We have witnessed a resurgence in land activity in the satellite towns attributed to an expansion of services in the wider Nairobi area, owing to infrastructure upgrades, a growing population as well as the influx of international interests looking to create a regional base in Nairobi,” Hassanali said.
Investments in infrastructure over the last few years has further encouraged new opportunities in the area.
Tigoni emerged as the best performer gaining 6.65 per cent over the quarter with an acre of land retailing at Sh29.5 million while Mlolongo Town witnessed a marginal growth of 1.59 per cent rise to Sh31.9 million.
Juja town recorded a 20.91 per cent annual increase with an acre of land going for an average of Sh18.5 million.
Kiambu town saw a 6.5 per cent increase to Sh42.1 million for an acre while the same size in Juja appreciated 6.4 per cent to Sh18.5 million on average.
An acre in Ongata Rongai rose 5.4 per cent to Sh27.1 million while the same was up 5.1 per cent in Syokimau to retail at Sh25.9 million.
In Kiserian and Ruiru, land prices appreciated 4.6 per cent to Sh9.8 million and Sh28.5 million respectively.
In Nairobi, land prices exhibited stability with a 0.17 per cent growth with only high-end, low-density suburbs Loresho, Spring Valley and Nyari recording optimistic growth at 3.5, 3.4 and 2.1 per cent respectively.
Loresho was the best performing suburb with prices increasing to Sh89.1 million over the quarter as there is still demand in the area.
On an annual basis, Spring Valley posted the highest price rise at 13.44 over last year to Sh201.8 million per acre.
Upper Hill remained the most costly location even as the price of an acre dipped 1.0 per cent to Sh494 million.
Westlands is second at Sh438.5 million an acre on average.
Karen is the cheapest suburb with an acre going for Sh65.6 million.