Kenyan Homebuyers Find Bargains in Estates with Dropping House Prices

The latest property index from HassConsult has brought some surprising news for those looking to buy a home in Kenya.

The index reveals that there has been a significant drop in house and apartment prices in various estates, which is good news for many Kenyans who have been struggling with the rising cost of living. Several well-known estates, including Kilimani, Lavington, Muthangari, Parklands, Riverside, and Upperhill, have experienced a decline in house prices. Similarly, apartment prices in Westlands, Spring Valley, Runda, and Kitisuru have also seen a decrease. Even satellite areas like Limuru and Kitengela have witnessed a reduction in prices.

When comparing figures from the last quarter of 2022, the decrease in house and apartment prices in these estates is quite significant. Upperhill leads the way with a 9.2% annual decrease, followed by Riverside at 5.6%, Kitisuru at 4.6%, Westlands at 3.6%, and Runda at 3.2%. Other areas like Lavington, Parklands, Spring Valley, and Kilimani have also experienced varying degrees of decline. However, it's worth noting that Limuru houses saw a 3.4% annual price change, while Kitengela apartments had a 5.9% annual increase. Despite the current decrease in prices, the long-term trend shows that property values have been steadily rising since 2000.

Ongoing development projects and improved infrastructure have been attributed to recent changes in property prices. According to recent statistics, property prices have experienced a modest increase of 1.48% in the last month, a 4.09% rise in the last quarter, and a 2.50% surge in the last year. Over time, the average value of properties has skyrocketed from Ksh7.1 million in December 2000 to Ksh34.9 million in December 2023. For those interested in buying property, the report reveals that a 4-6 bedroom house typically costs around Ksh38.7 million, while a 1-3 bedroom property has an average price of Ksh12.9 million.