Over the years, Nairobi’s upmarket Lavington and Kilimani were among the most lucrative places to make land and property investments.
The high demand for these areas saw land prices surpass the Ksh100 million per acre mark.
According to the 2022 HassConsult Quater Three Report, an acre of land in Lavington costs Ksh231 million while a similar plot in Kilimani goes for Ksh403 million.
However, those who had made investments in those areas made less profit as compared to select satellite towns such as Kitengela.
An aerial view of Lavington area in Nairobi.
In particular, Kitengela was the most profitable place to invest in having recorded a 10-year change of 3.07 fold.
Lavington recorded 1.76 fold while Kilimani registered 1.79 fold in the same period.
Kitengela’s profitability was credited to the increase in the land value which is attributed to various investments made around the area including the expansion of roads.
Surrounding towns such as Syokimau also beat the predominant posh estates in profitability.
“Syokimau town, for instance, is now more accessible following the opening of the Nairobi Expressway over the quarter. The town was the best performer over the quarter with prices increasing by 6.8 per cent.
“The town was also the best-performing town annually with prices improving by 20.1 per cent,” read the report in part.
Such profitability, on the other hand, contributed to an increasing trend where city residents left the likes of Kilimani and Lavington to invest in satellite towns in search of privacy.
The ever-increasing cost of living also pushed a number to invest in areas where land is affordable but is also affordable in terms of living expenses.
Investments in residential apartments also drove people away from posh neighbourhoods as land value dropped and they became crowded. This is the reason why some estates such as Karen have strict guidelines in the construction of apartments and bedsitters.
Therefore, a number of area estate companies were advising their clients against taking their investments in neighbourhoods with strict rules.
Another area that recorded record spikes in land value was Juja and its environs which is becoming lucrative over various infrastructural developments.
An acre of land in Juja is estimated at Ksh18 million.
“Such areas grow as many businesses are looking for areas outside of the city, where they can get affordable office and parking spaces for their employees and clients.
“The good infrastructure network has also facilitated the establishment of tertiary education institutions in the area, and the availability of other social amenities that make life comfortable,” Fanaka Real Estate Company stated in its report.
Inside Thika Road Mall along Thika Superhighway.