New report reveals how estates in Nairobi are slowly losing appeal
Ngong Road, Buruburu, South C among estates in Nairobi losing appeal according to the Kenya Bankers Association (KBA) report
Ngong Road, Buruburu, South C among estates in Nairobi losing appeal according to the Kenya Bankers Association (KBA) report.
Five Nairobi estates that were predominantly attractive for the better part of 2023 are beginning to lose their lucrative status as residents seek alternative areas for housing.
According to the Housing Pricing Index by the Kenya Bankers Association (KBA) report, the five notable estates that are slowly losing their popularity include South B, South C, and Buruburu.
Also included among the five are Komarock and estates near Ngong Road.
The Association noted that the trend was witnessed through housing transactions recorded in the Nairobi estates.
“Mid-market segment (Region 2) saw a significant drop in completed transactions, dropping to account for 20.75 percent from 36.96 percent in the previous quarter,” read the report in part.
Conversely, the report also noted that there were estates that recorded a significant growth in transactions.
Notably, the majority of the estates where people were purchasing houses were located outside the city. However, they are areas where city residents can commute to and from daily.
Among the estates include Athi River, Mlolongo, Ngong, Ruaka, and Kitengela.
Often referred to as satellite towns, land purchases and transactions grew by over 10 percent in these areas.
“Activity in the low-market segment (Region 1), remained dominant, rising to account for 62.26 percent in the fourth quarter from
47.83 percent in the third quarter of 2023,” read the report in part.
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According to the bankers, most Kenyans are increasingly considering affordability when choosing locations to relocate to.
This was occasioned by the tough economic times that were characterized by high inflation and a weak shilling, further, reducing buyers’ spending power.
For instance, in the estate that was avoided in the last quarter of 2023, apartments were averaging Ksh13 million while Kenyans spent Ksh14.2 for single-story housing.
Meanwhile, mansions were put at Ksh18.2 million.
Conversely, satellite towns offered prospective house owners cheaper options. For instance, apartments in emerging markets were being sold for Ksh11.8. This is Ksh1 million less the amount they would have spent in the other Nairobi estates.
On the other hand, single-storey house prices were projected at Ksh10 million as mansionnets retailed at Ksh14.5 million.
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