Land prices in six satellite towns around Nairobi experienced double-digit increases in 2023, providing investors with returns comparable to high-yielding government bonds.
According to data by HassConsult, the significant growth in land value was attributed to easier access, making these towns attractive for middle-class Kenyans seeking affordable land without sacrificing city access.
Infrastructure improvements, including major road works, also contributed to this trend according to the realtor.
The growth continues to position land as a popular investment among Kenyans even as equities in 2023 netted a negative return on foreign investor flight. The Nairobi Securities Exchange (NSE) suffered a significant 28% decline in investor wealth in the period.
In the suburbs, while land prices also improved, growth was limited by high price thresholds. The costliest land remained in Upper Hill, Westlands, Parklands, and Kilimani.
Suburbs recorded an average Quarterly growth of 3.3% which is the fastest in nine years.
There was positive movement in 14 out of 18 suburbs with an average annual growth rate of 3.96%.