A report by real estate company, HassConsult, has detailed a decline in demand for housing and land in three Nairobi estates, posh.
In the Q3 report that was released in November, Kileleshwa, Donholm, and Riverside were listed as the estates becoming less attractive to potential homeowners.
Kileleshwa was hardest hit, with an excess of land and homes recorded in the suburb. Land prices fell by 0.6% as a result between July and September. Kileleshewa land prices have decreased by 2.8% since the year’s beginning.
From January to September 2023, there was a 2.5% decrease in Kileleshwa housing prices.
In a similar vein, land values in Riverside have decreased 1.9% since the year’s start.
Conversely, Donholm Estate saw one of the largest declines in rent from July to September, coming in at 6.7%.
Why Are Kenyans Avoiding the Estates
1. Emergence of Satellite Towns
As the Kenyans lose interest in the three estates, Nairobi satellite towns are attracting more Kenyans seeking to buy land, build homes, and rent houses.
According to the HassConsult Report, the satellite towns gaining traction include Thika, Syokimau, Ngong, Limuru, and Juja.
2. Emergence of Highrise Buildings
Kileleshwa has, over the years, been predominantly known as a suburb for the rich, who mostly prefer stand-alone houses for privacy.
However, with the emergence of flats and apartments being undertaken by private developers, the rich prefer to invest in other leafy suburbs.
3. Cost of Living
On the other hand, the cost of living has also affected the super-rich, who are increasingly facing auctions, given the current state of the economy.
Despite land prices and rent registering a drop in these estates, the prices still remain relatively high for a majority of Kenyans.