Property Prices in Nairobi Kenya

IGH-END ESTATES

These estates have palatial homes, land compounds, top-level security, well-paved roads, and strict zoning regulations. The average rent in these estates is Kshs 200,000  to KShs 300,000 per month with an average selling price of 60 Million to over 100 Million.

Gigiri and Nyari are examples of such estates with Gigiri being the most expensive estate in Nairobi.

High-end estates are least likely to be affected when the economy is performing poorly.

UPPER MIDDLE – CLASS ESTATES

The difference between these estates and the high end is minimal. Their zoning regulations are a little more relaxed, they have social amenities such as shopping malls and unlike the high end estates they are accessible through private and public transport.

Rent ranges between Kshs 50,000 to Ksh 150,000 per month and the average selling price is between Kshs 12M to Kshs 25 Million depending on the location and number of bedrooms.

Estates such as Kilimani, Ridgeways, and Westlands fall in this category. These estates are also likely to be very affected when the economy is not doing well. Though, at the moment, Kilimani has had an over supply of houses compared to demand leading to a slight reduction in prices.

LOWER MIDDLE-CLASS ESTATES

These estates have high populations, high-rise buildings and minimal zoning regulations. Rent is very affordable ranging from Kshs 20,000 to Kshs 40,000 depending on the size, features of the property, and proximity to the road and other amenities.

These are estates such as Buruburu, Umoja, Imara Daima and Donholm. These estates have a high population giving investors a great opportunity to set up rent apartments or houses for sale.

Satellite towns such as Kitengela tend to be much cheaper with rent ranging between Kshs 8,000 to KShs 20,000 depending on the size. The average selling price for houses in these areas are Kshs 8.8 to 11.9  Million. The property values have been affected lack of basic services such as an unreliable supply of water and poor roads.

Some of these satellite towns such as Kitengela, Syokimau, Athi River, and Thika have high land prices and an increase in property development projects. This is likely to affect rent prices to either remain constant or reduce. In areas like Juja, Ruiru, and Limuru both residential and commercial property are recommended as an investment opportunity.

Ngong town has high human traffic and land prices are cheaper hence residential homes are advised.

BUYING OR SELLING PROPERTY

Before buying or selling property, use the services of a registered valuer. A valuer will analyze the property and develop an opinion on its value using tested processes and methods. A certified real estate professional could also do a property appraisal and give an estimate of the market value based on the current trends in Nairobi.

Your financier or mortgage providers could also advise you on property prices.

Some factors that determine the value of the property are:

  • Size of the land on which the property was built on.
  • Location of the property – The more popular accessible the location is the higher its value.
  • Proximity to certain amenities such as schools, hospitals, and shopping malls.
  • The key architectural design style
  • The current condition of the property in terms of any renovations needed in a house.
  • Aspect; the direction in which the property is facing to give enough natural light into the house
  • Topography; the shape of the land the property is sitting on.
  • The size of the property the market value of real estate property is usually mentioned in terms of price per square foot. For instance a 3000 square foot home sold at KShs 600,000 is  Ksh 200 per square foot.
  • The layout of the property
  • The internal features of the structure like kitchen, bedrooms, living rooms and others
  • The land block layout and how the housing is arranged in that area. Houses in gated communities are more preferable than stand-alone homes, usually due to security concerns, and sharing of resources.