Property sale prices in Nairobi have been largely flat for the most part of this year and only saw a slight increase of 0.7 per cent in the third quarter of 2024.
Compared to the previous quarters, this sharp slowdown has affected apartment sales also particularly in satellite towns and suburbs.
The latest house price index report by HassConsult shows that the sale of property in Nairobi suburbs remained stagnant at -0.9 per cent. Major suburbs including Gigiri, Kilimani, Kitisuru, and Runda recorded negatives in house sales during the period.
Apartment sales
Kileshwa, Kilimani, Lavington, Muthangari, Riverside, Upper Hill, and Westlands also witnessed a drop in their apartment sales between July to September 2024.
Satellite towns also suffered the same fate having experienced a 0.2 per cent decline, a drop compared to the second quarter which recorded 2.1 per cent. Most areas affected satellite towns included Athi River, Mlolongo, Kitengela, Ngong, Ruiru, Ruaka, and Thika road.
“Apartments reported negative price movements in many of the city suburbs and Nairobi’s satellite towns, in large part due to the increase of supply currently amounting to 67.7 per cent of total advertised stock,” stated part of the report.
Following steady increases in the last quarter of 2023 and the first quarter of 2024, the rental property market experienced price declines of 0.6 percent on average during the third quarter of 2024.
Hass Consult, majorly attributes this stagnation to the civic unrest and economic uncertainties that the country has been experiencing.
“The property rental market eased after a strong period of growth between October 2023 and June 2024, when monthly rental price growth averaged at 3 per cent,” said Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
She said the market aligned with prevailing tough economic conditions, characterized by protests in June and July.
