Real estate has been one of Kenya’s fastest-growing sectors over the last decade, fuelled by a growing middle class. Returns from real estate have outpaced the returns from government securities and equities. This fuelled a boom in land prices which have increased nearly four-fold in Nairobi and other surrounding satellite towns. Individuals with wealth and social standing own properties in Nairobi’s most prestigious neighbourhoods. Nairobi holds up most of the richest neighbourhoods in the country.
The 2020 Land Price Index Quarter 2 report released by HassConsult Real Estate showed the staggering prices tagged on properties in Nairobi’s leafy suburbs. The rich neighbourhoods act as a residence to businessmen, ambassadors, celebrities and personalities, politicians and many more high-status persons. A report by HassConsult also shows that the home prices, on average, recorded a marginal drop of 0.02 per cent compared to a rise of 3.3 per cent in the same quarter in 2019.
Land ownership and home development in these rich neighbourhoods can cost high amounts of money of more than Sh100 million as the starting price. On average, homes cost about Sh119.3 million in Gigiri while standing alone homes cost an average of Sh11.2 million in most other areas of the city. Satellite towns In Nairobi command a much lower house selling prices compared to the affluent neighbourhoods. Here are the most expensive neighbourhoods in Kenya’s capital city.
Muthaiga is about 2.5 miles northeast of Nairobi City Center on the north, it is largely surrounded by Karura forest, the city’s largest urban forest. Limuru Road and the Mathare River area on the southern side, and the Thika Super Highway and Kiambu Road are on the east and Parklands Avenue forms the western border. The well Known Muthaiga Golf Club is also suited in this area. The posh estate hosts some of the wealthiest individuals in Kenya. Muthaiga recorded the highest gain among the suburbs at 4.5 per cent with an acre of land averaging at Sh182.9 million.
Situated between Kiambu and Limuru road, this was among the earliest existing rich neighbourhoods in Kenya from early years. This rich neighbourhood is known to host some embassies and ambassadors’ residences. The average price of a house in Runda goes for about an approximate Sh150 million.
Nairobi’s Gigiri suburb is home to the most expensive houses in the capital. Gigiri hosts the United Nations Office at Nairobi (UNON) and the embassies of several Western economies such as the US, Canada, Italy, Sweden, Poland, Belgium and Norway. It is also home to numerous embassies for African countries besides residences for various ambassadors and high commissioners. An acre of land in this area averages at Sh 233.6 million.
Kitusuru is located in Westlands Constituency within Nairobi County. It is the latest upcoming leafy suburb neighbourhood in Kenya and gives life to the forests that surrounded it before its occupation. It contains magnificent villas for sale that goes for up to Sh145 million.
Located northwest of the city centre, Lavington is home to high-end mansions that cost no less than Sh66.7 million, making it one of the high-income residential estates. Lavington holds five-star restaurants such as Toranj which is an Italian Restaurant and Mama Ashanti, a Nigerian Restaurant.
The leafy suburb of Karen is located in the South-West of Nairobi and neighbours Ngong Hills. The estate is characterized by a mix of old colonial bungalows and lots of modern mansions that range up to Sh175 million for one to own a house.
HassConsult listed average house prices in Nyari estate at Sh103.6 million, making the neighbourhood the second most expensive in the city.
Similar to higher sale prices, HassConsult said that Gigiri and Nyari now command the highest rents in the city, with an average house letting at Sh371,000 a month in Gigiri, Sh335,700 in Nyari and Sh321,100 in Runda and Kitisuru. There is always an opportunity for buyers and sellers in the real estate market as it continues to grow and develop.