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Sunvalley Estate phase 2 in Lang’ata, Nairobi.
Houses in Langa’ta recorded the highest increase in sale prices among all Nairobi suburbs in the three months to September as the overall property market stayed on a recovery path from the economic fall-out of the Covid-19 pandemic.
The latest data by Realtor HassConsult shows that sale prices of property in Lang’ata rose by 2.1 percent in the quarter to September — the highest among all the suburbs of the city.
House sale prices in Lang’ata also recorded the highest year-on-year growth at 11.9 percent—firming its credentials as the most sought after area among buyers.
Analysts attribute the high demand for housing property in Lang’ata to lower prices compared to other middle-income suburbs, the area’s proximity to the city centre and the elaborate transport links to key thoroughfares including the Southern by-pass, Lang’ata Road, the Nairobi ExpressWay and the Lang’ata-Kibra link road that are currently under construction.
“Lang’ata is the last of the city suburbs that still have low ticket prices and so affordability is driving the increase there,” said Sakina Hassanali, head of development consulting and research at HassConsult.
Rent prices in Lang’ata however dipped by 2.3 percent in the quarter to September.
Houses in Runda and Donholm recorded the biggest drop in sale prices in the period, at 1.3 and 0.8 percent respectively.
In terms of apartment sales, Upper Hill topped all Nairobi suburbs to post a 3.1 percent rise in the period under review, even though apartment rent prices in the region dipped 4.1 percent over the period, extending a trend of rent declines in lavish suburbs including Kilimani and Westlands that were abandoned by workers and households last year due to economic hardships caused by Covid-19.
Apartment rent prices in Kilimani fell 8.7 percent in the three months to September while Westalnds reported a 7.4 percent dip on low demand by families still hurting from the economic challenges caused by Covid-19.
HassConsult notes that over the quarter, apartments along the 27km Nairobi Expressway touchpoints which include Mlolongo, Athi River, and Syokimau, saw their prices rise by 1.9 percent, 1.8 percent, and 0.03 percent respectively reflecting buyer confidence that completion of the project will push up prices.
“We are seeing buyer confidence in the apartment market along the Nairobi Expressway because there are expectations that completion of the project is expected to bring these areas closer to the city by cutting travel time,” said Ms Hassanali.
“It is important to note that proximity is a factor of how fast you can arrive at your destination and not the physical distance.”
Apartments in these areas, she noted, are becoming attractive as they will be more accessible on completion of the mega project, adding that investors are looking to enter at current prices which are more affordable relative to similar properties in other towns. – nation.africa.