Rent in Posh Nairobi Estates Drops
A number of posh estates have seen a drop in rental prices during the first months of 2021, a report by Hass Consult has revealed.
Apartment units in Gigiri saw the highest drop in rent with a 2.5% drop in the first three months and an annual drop of 8.1% since the same period last year.
Units in Spring Valley saw a 0.8% drop over the first quarter with an annual drop of 2.9%.
Other areas that saw an annual drop in rental prices were Westlands (1%), Kitisuru (1.7%), Lavington (0.6%), and Loresho (1.2%).
In terms of satellite towns, Kitengela recorded a 2.2% drop over the quarter and 9.7% annually. Athi River was the laggard with rents dropping by 3.1% for the quarter and 7.4% annually.
Overall, all property types continue to improve increasing by 1.2 % over the quarter.
When it comes to buying houses, buyers developed a liking for semi-detached units as they are more spacious than apartments but at the same time are more affordable than detached houses.
“Working and schooling from home have shed light on the importance of more space, leading to increased demand for homes with compounds.
“However, since most household incomes declined or were affected, semi-detached houses have become a more favorable housing option as they offer more space than apartments but at a less expensive price than detached houses,” Head of Development Consulting and Research at HassConsult Sakina Hassanali stated.
In December 2020, apartments took up 58.8% of the market, semi-detached houses took up 28.8% of the market and Detached Houses took up 12.4% of the market.
At the same time, houses in Langata saw the biggest price in rent at 4.4% over the quarter while annually Muthaiga topped at 8.4%.
The real estate company observed that property values had increased by 4.36 times since 2001, meaning a house that cost Ksh5 million in 2001 now costs well above Ksh20 million.