Nine upscale Nairobi neighborhoods witnessed a decrease in rental prices during Q4 2023. The prestigious areas of Kileleshwa and Muthaiga were among the most affected locations, according to the latest Hass Consult Quarterly Report released on January 22.
The most substantial rental decreases were observed in Ngong and Nyari Estate – Leading with a 2.4% reduction. Muthaiga followed with a 1.4% decline. Other affected Nairobi estates included Karen, Kileleshwa, Runda, Westlands, Kiserian, and Tigoni.
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Here is the full list of Nairobi estates with rent decrease in Quarter 4 of 2024:
Estate | Rent Decrease (%) |
---|---|
Nyari | 2.4 |
Ngong | 2.4 |
Tigoni | 1.5 |
Muthaiga | 1.4 |
Westlands | 0.9 |
Kiserian | 0.8 |
Runda | 0.5 |
Karen | 0.4 |
Kileleshwa | 0.4 |
Economic Impact and Market Response
The challenging economic environment forced property owners to adjust their rental expectations. As noted in the report,
“Annual rental prices were effectively flat at -0.02 per cent for 2024, reflecting the challenges landlords faced in raising rents amidst tough economic conditions.”
Areas Showing Growth
Despite the overall downward trend in some areas, several locations experienced notable rental increases:
– Gigiri topped the list with a remarkable 6.7% increase
– Juja followed closely with a 6.4% rise
– Athi River saw a significant 5.7% increase
Additional areas reporting rental growth included Kitisuru, Lang’ata, Loresho, Lavington, Limuru, Ongata Rongai, Ruiru, Kiambu Town, and Kitengela.
Sakina Hassanali, Head of Development Consulting and Research at HassConsult, provided insight into the market dynamics. She explained that declining inflation rates had a dual effect, enhancing tenants’ purchasing power while enabling landlords to implement upward rental adjustments in certain areas.
Here is the full report:
Property Sales and Market Performance
The report highlighted robust house and apartment sales in several neighborhoods, with Loresho, Ridgeways, and Runda emerging as leaders in property uptake. It noted varying performance across different property types:
– Detached houses showed strong growth: “The strong annual growth was supported by a rise in detached house prices, which grew 1.5 per cent quarter-on-quarter and 7.5 per cent year-on-year.”
– Semi-detached houses and apartments faced challenges: “However, semi-detached and apartment prices faced pressure in the fourth quarter, with declines of 0.8 and 0.6 per cent respectively.”