Lang’ata houses’ sale prices surges by 10.3 pc in 2021

NAIROBI, Kenya, Nov 19 – Lang’ata houses recorded the highest annual sales prices surge at 10.3 percent, a report released by real estate management firm, Hass Consult, has revealed noting that its affordability drove sales which also rose by 4.1 percent in the third quarter of 2021.

Lang’ata, the report noted, posts the cheapest prices point for city houses at Sh 34.5 million.

“While most suburbs in and out of Nairobi reported somewhat mild movements, both up and down, Houses in Langata posted atypical property price movements of an increase of 4.1 percent in the quarter and 10.3 percent in the year in a market that is currently driven by affordability. Langata posts the cheapest price point for city houses at Kshs. 34.5m,” the report noted.

Loresho houses also posted a  7.6 percent surge followed by Muthaiga at 6.3 percent, Kitisuru at 5.6 percent, and Kileleshwa at 4.9 percent.

Overall, the report noted that property sales prices remained static in 2021, registering a 0.1 percent drop over the quarter and a 1.7 percent drop from June 2020.

The drop was attributed to the large annual drops in apartment pricing in Kilimani and Kileleshwa which went down 9.5 and 6.9 percent.

Sakina Hassanali, Head of Development Consulting and Research at HassConsult said economic stagnation had largely riddled the middle market with salary cuts, unemployment, and small business burnout.

The prices of rental houses reported a 1.1 percent increase over the quarter which was aided by a surge in rental prices of detached houses which went up 3.4 percent in the third quarter of 2021.

The survey attributed the rise to the increased number of workers within large organizations who continue working from home thereby redirecting their mobility costs to housing budgets.

The influx of expatriate communities, nonetheless, led to a decline of rental rates in Gigiri which dropped by 8.7 percent in 2021.

Ruiru recorded the highest increases at 10.3 percent due to the increased supply of detached units and the availability of houses on more spacious parcels.