Rent: Karen's growth rubs off on Ongata Rongai and Ngong

A view of Karen Shopping Centre. [James Mwangi, Standard]

As a result, Ngong Town is also reported to have witnessed bullish growth in land prices which increased 4.7 per cent in the quarter and 20.7 per cent over the last year which is four times the rate of the increase in an average satellite town. This growth defied the prevailing economic conditions.

The HassConsult index indicates that the Ngong-Kiserian-Isinya Road construction, which was formerly a rough road, might have played a role. The road now seamlessly connects the three towns hence residents of Ngong have less traffic to contend with when travelling to and from work.

The Expansion of the Ngong- Kibiko-Suswa Bypass opening up Kibiko area has also had a role.

The Hass Land Index for the second quarter of 2023 shows land prices in Nairobi's 18 suburbs stagnated as general demand slowed down in the areas. This is a decline of 0.1 per cent in the quarter but growing 1.2 per cent in the year. Spring Valley, Donholm, Loresho and Lang'ata recorded respective increases of 2.1 per cent, 2.2 per cent, 2.5 per cent and 3.9 per cent. Land price increases, the realtor says, were witnessed in city suburbs that had low rigidity of traditionally allowable development densities.

Land prices within satellite towns over the quarter, the index states, were also subdued with minimal increases of just 1.2 per cent and 5.1 per cent in the year.

Satellite town

Thika Town was the satellite town with the highest quarterly increase in the period of 5.84 per cent while Ngong had the highest over the year of 20.7 per cent. Juja had the lowest quarterly increase of -4.37 per cent while Ongata Rongai had the lowest quarterly increase of -13.47 per cent.

Langata is the suburb with the highest quarterly increase for land prices of 3.85 per cent while the annual(increase) goes to Spring Valley 17.33 per cent. Suburb with the lowest quarterly increase is Nyari with negative 1.79 per cent with Upper Hill reporting the lowest annual increase of negative 3.26 per cent.

"Land pricing is a function of its development potential. Therefore, land in areas with strict development density guidelines tends to have a price ceiling while (land) in areas that are subject to less rigidity around the densities tends to increase in pricing in tandem with the approved density."