13 Estates Around Nairobi Where Rent is Dropping in 2025 [LIST]

13 major suburbs and satellite towns have seen landlords reduce their rental asking prices in the first quarter of 2025, a report by HassConsult reveals.

In the report, it was highlighted that most of the drop was witnessed in the Nairobi suburbs as compared to satellite towns.

Among the suburbs with the highest drops were Muthaiga (4.9 per cent), Nyari (4.7 per cent), Kilimani (4.6 per cent), Westlands (3.1 per cent), Langata (2.7 per cent), Riverside (2.2 per cent), Gigiri (1.9 per cent) and Ridgeways (Ksh1.5 per cent)

In the satellite towns, the drop was witnessed in Mlolongo (2.6 per cent), Tigoni (2.5 per cent), Athi River (2.2 per cent), Kiserian (1.2 per cent) and Thika (1.4 per cent).

Performance of suburbs

Unlike satellite towns, where the rental prices have increased in most areas, landlords in the suburbs reduced their demands as they sought potential clients who have been opting for satellite towns where rent is affordable.

"The city's suburbs, meanwhile, reported their first asking price contraction in two years at -0.8 per cent, which was weighed down by declines in asking prices in Muthaiga (4.9 per cent), Nyari (4.7 per cent), & Kilimani (4.6 per cent)," read the report in part.

Equally, landlords in the suburbs have been hit by the move by President Donald Trump to freeze USAID, which was supporting many organisations that had employed Kenyans. Owing to the freeze, there have been layoffs affecting the rental market.

"Locally, in the pricier city suburbs, the fall in asking prices revealed concerns about a fall in demand after the US cut off funding for its USAID programme and its affiliated programmes in Kenya. This action has led to mass layoffs, which affect the target market for the higher-end rental segment," read the report in part.

Read Also: To Rent or to Own? 4 Things to Consider in the Kenyan Market

Satellite Towns 

Most landlords in Nairobi satellite estates increased their asking rental prices for apartments and houses within the first quarter of 2025.

As detailed in the report, the landlords made the move owing to improved economic activities and an increase in demand.

For instance, the report highlighted that the country's inflation had been stable and low for some time, therefore, the landlords saw an opportunity to raise their rental demands.

Some of the estates that witnessed a significant increase in rental prices include Ruiru (5.3 per cent), Ngong (5.1 per cent) and Limuru (4.9 per cent).

Demand for Housing in Satellite Towns

Despite improved economic activities, Kenyans are still keen to look for affordable areas to live in, hence the focus shifts to satellite towns.

Additionally, those seeking to buy houses opted for satellite towns owing to affordability.

“The overall price rebound was mainly driven by higher asking prices on property in Nairobi's satellite towns, which led to growth of 2.4 per cent,” HassConsult co-CEO Sakina Hassanali noted.

“The improvement of infrastructure and amenities has given satellite towns the convenience that was previously the preserve of suburbs, but at a lower average price point of Ksh14.46 million per unit compared to Ksh32.46 million in the suburbs, putting them within reach of a larger buyer pool.” 

Also Read: Rent in Upmarket Nairobi Estates Falls as Kenyans Move Away from the City - Report