Kilimani loses appeal, investors shy off amid consecutive land price drop

NAIROBI, Kenya, Jan 31 – Kilimani area continues to lose its appeal as a high-end family-oriented suburb with increased commercial developments and high dense units which are pushing away investors and affluent Kenyans.

A report by Hass consult reveals that Kilimani recorded a 0.9 percent drop in land prices in the fourth quarter of 2021, the third consecutive drop in 2021 while on an annual basis the suburb recorded a 1.1 percent drop.

The average land price in Kilimani per acre is Sh 409,400,000.

Sakina Hassanali, Head of Development Consulting and Research at HassConsult said many investors are hesitant about Kilimani due to the uncertainty on whether the present infrastructure will attract new developments.

“The new developments are high-density units including studio apartments which is a shift from the ample apartments and detached houses that characterized the suburb a decade ago and it is not clear if the present infrastructure will adequately cater for all stock coming through,” she said.

The survey noted that the aggressive construction by new developers is putting pressure on present infrastructure.

“Kilimani prices are cooling as a wave of such alternative developments coupled with aggressive construction is expected to put pressure on present infrastructure which may make the area lose its appeal to potential investors,” the report added.

The report mirrors remarks by various Kilimani residents and Kenyans who have decried increased insecurity caused by the surge in population which has exposed the neighborhood.

Speaking to Capital FM Business, area resident Morris Makabe noted that the sudden rise in the number of tall buildings has replaced the “homely” ambiance of Kilimani.

“One wonders how it will look in 10 years!” he decried. “Over the past few years, Kilimani has gradually lost its special touch. It used to be tightly secure and anyone could go about their business comfortably and even walk along the streets till late. Nowadays, there are serious instances of insecurity.”

Overall, Nairobi had 0.34 percent growth in the quarter while the towns showed a 1.4 percent increase in land prices.

Kiserian was listed as the best performing town with land prices increasing by 5.2 percent.