Why an acre of land in Eastleigh and South B will cost you Sh600 million

A house in South B. [File, Standard] Land prices in Nairobi's fast-developing Eastleigh and South B suburbs have surged, nearing those of the central business district (CBD). The prices have surpassed Upper Hill, historically a prime commercial hub, according to the newly published BuyRentKenya Land Price Index for the second quarter of this year. The report released on Thursday indicates that Eastleigh and South B recorded average land prices of Sh600 million per acre. This places them significantly higher than Upper Hill, which registered an average of Sh543 million per acre, positioning them as strong contenders to Nairobi CBD's average of Sh800 million per acre. Eastleigh, located east of downtown Nairobi, has long served as a key business hub for Kenyan Somalis, local traders, and thousands of refugees who sought refuge from conflict in neighbouring Somalia. Over the decades, the popular commercial district has transformed, with original shops and houses replaced by high-rise shopping malls developed by businessmen from the Horn of Africa. Business Bay Square (BBS Mall) in Easleigh is the largest in East and Central Africa. As the population expands beyond Eastleigh, often referred to as "Little Mogadishu," Kenyan Somalis have ventured into other areas of the city like South B and South C, contributing to the broader demand for land. The BuyRentKenya index attributes the high valuations in Nairobi CBD, Eastleigh, and South B to their strategic locations and robust commercial demand. These areas continue to function as central business and retail hubs, leading to land scarcity and increased competition among prospective buyers and developers. While Upper Hill maintains its appeal for institutional investors, its price appreciation in this quarter lagged behind the rapid growth seen in Eastleigh and South B, a trend potentially influenced by limited new supply. In Nairobi's property market, investment from various developer groups is contributing to increased demand and development, particularly in areas like South B, South C, Kilimani, and Kileleshwa. Well-wheeled business tycoons with established track records from the Horn of Africa, known for their significant role in transforming Eastleigh with commercial ventures, are expanding their development footprint into adjacent zones, impacting demand. Concurrently, cash-rich Chinese-backed investments and other substantial foreign and local developer entities are driving extensive high-rise residential project development in high-demand areas such as Kilimani and Kileleshwa, further stimulating land values and overall market activity. The index also highlighted price movements in other parts of Nairobi and its environs. Kileleshwa, for example, recorded a double-digit price increase in Quarter two of 2025, reinforcing its status as a growing residential area. This growth is linked to improved infrastructure, proximity to amenities, and ongoing redevelopment projects. Satellite towns such as Jogoo Road, Mirema, Rosslyn, Kabete, and Ruiru are identified in the report as offering notable potential for return on investment due to their more accessible entry points. Rosslyn notably showed a 40 per cent growth in land prices over the last two years, while Mirema registered a 20 per cent increase in the same period. The BuyRentKenya report indicates that increasing government investment in infrastructure, changes in zoning regulations, and consistent diaspora remittances are factors driving land demand across Kenya's property market. The index, compiled from data on over 30,000 property listings per month on the BuyRentKenya platform, aims to provide credible benchmarks for buyers and developers. "Location-specific dynamics remain the strongest drivers of price movement. In the upcoming quarters, we expect to see divergent growth trajectories across various nodes, with a mix of stable strongholds and emerging outperformers," said Elizabeth Costabir, Chief Executive Officer of BuyRentKenya. The report reaffirms land's position as a vital asset class within Kenya's property landscape.

Why an acre of land in Eastleigh and South B will cost you Sh600 million

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Why an acre of land in Eastleigh and South B will cost you Sh600 million

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