Aerial view of Kilimani showing FCB Mihrab building, high-end apartments and offices. [David Gichuru, Standard]
Kilimani, whose high-end status has been jeopardised by developers opting for high-rise units, saw its property prices take a hit towards the end of last year.
This went against the general market direction in the city where prices mainly went up according to property consultants, Hass Consult.
“Kilimani suburb which has traditionally been a high-end family-oriented residential area with ample apartments is now attracting investors putting highly dense units including studio apartments,” said Hass Consult in a Land Price Index Quarter Four Report 2021
“Kilimani prices are cooling as a wave of such alternative developments coupled with aggressive construction is expected to put pressure on present infrastructure which may make the area lose its appeal to potential investors.”
Kilimani recorded a 0.9 per cent drop over the quarter, the third consecutive drop while on an annual basis the suburb recorded a 1.1 per cent drop.
HassConsult said the Kilimani suburb continues to drop as investors go slow on the area due to uncertainty on whether the infrastructure will support the new wave of developments the area is attracting - weakening its appeal.
"A few years ago, it was the exception for a residential building to have a lift but today it is the norm. The new developments are high-density units including studio apartments which is a shift from the ample apartments and detached houses that characterised the suburb a decade ago,” said Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
“It is not clear if the present infrastructure will adequately cater for all stock coming through.”
Nairobi recorded 0.34 per cent growth in the quarter while satellite towns showed a 1.4 per cent increase in land prices.
Kiserian was the best performing satellite town with prices increasing by 5.2 per cent. The best performing suburb, Spring Valley, saw prices rising 5.6 per cent over the quarter.
The land prices in the suburbs increased by 0.34 per cent over the quarter while in the satellite towns growth stood at 1.4 per cent.
Land prices in Donholm dropped by 2.7 per cent in the period, with Limuru posting a 2.34 per cent drop over the quarter. Ruaka saw prices drop by 1.22 per cent.