NAIROBI, KENYA: Apartment prices in Kilimani, Lavington and Kileleshwa dropped over the last one year.
The Hass Consult Property Index for the third quarter of 2018 shows that these suburbs recorded declines of 5.2, 3.0 and 0.6 percent respectively.
Sakina Hassanali, Hass Consult’s head of development consulting and research, attributed this to changing face of the area that is making unattractive to families.
As the area grows to include mixed use facilities and offices, three and four bedroom apartments have seen a drop in demand.
These type and sizes of units are common in the area and are popular with families. However, Ms Hassanali said that one and two-bedroom units are becoming popular.
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These units are more popular with single and young professionals who would ordinarily be drawn to such areas by work or amenities.
At the same time, jitters occasioned by the ongoing demolitions have also affected the real estate sector, “We had a lot of nervousness when it comes t buying new property,”said Hassanali. She said buyers were worried about approval documents issued by the government and whether they would stand up to scrutiny in future.
Just this week, homeowners at Seefar Apartments were hit with a demolition notice by the Water Resource Management Authority through the National Environment Management Authority.
The houses are said to stand on Nairobi Dam riparian reserve and the owners have been ordered to bring them down.
