Land prices in Nairobi and it’s environs have increased by over 19 per cent in the past 12 months, an aspect attributed to increased demand for commercial real estate and improved infrastructure, this according a recent Cytonn 2017 Land Report
The report shows that land in commercial areas of Westlands, Kilimani and Upperhill have appreciated by 24.3 per cent, with an acre piece of land currently going for SH642M compared to last year’s Sh510 M. Plots in satellite towns of Rongai and Ruaka went up 2 per cent
According Cytonn Investment Senior Manager, John Denge explained that the rental yield for commercial buildings had increased by 9 per cent while that of residential increased by only 5 per cent, hence the high demand for land in commercial regions
He termed population growth, rapid urbanization, improved infrastructure and legal reforms in the land sector as key catalysts for the price increment.
Even though, the report noted that the land sector was facing a myriad of challenges including multiple land tenure systems, high land costs, inadequate infrastructure in some areas and difficult legal environment characterized by opacity in the issuance of title deeds and challenges in land registration and transfer
Based on individual market performance, Athi River, Limuru, Ongata Rongai, Dagoretti, Syokimau and Mlolomgo recorded the highest growth rates with 5-years CAGR above 25 per cent, mainly as they were characterized by higher infrastructure provision than other satellite towns and relaxed zoning regulations.
Land prices in the outskirts of Nairobi have appreciated by 19.4 per cent in the past one year, a move that is attributed to increased demand and improved infrastructure, this according to Cytonn 2017 land