the hass land index q1.2016
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Land in satellite towns new investment frontier as developers monopolise city suburbs
• Land value in Nairobi's 18-suburbs dropped marginally at 0.2 per cent between January and March 2016 attributed to a
shift into satellite towns by land investors
• The highest fall in land value was experienced in Eastleigh at 7.5 per cent followed by Ridgeways, Kileleshwa and Nyari
at 2.4 per cent, 2.2 per cent and 2.0 per cent respectively in the three months to March 2016 while Donholm recorded
the highest increase in land price at 9.3 per cent
• In contrast land prices in Nairobi's 14 satellite suburbs rose by 1.1 per cent in the first quarter of 2016
• Land in Kitengela rose by the 4.4 per cent in the first quarter of 2016, making it the best performing satellite suburb
Land continues to outperform other commodities returning nine times that of Gold and thirteen times that of cattle
over the past 7 years
Investment in land also runs ahead of annualized stocks and bond returns, rendering it the most stable investment
option with the highest yields over 7 years
•
•
HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
Land Index Highlights:
www.hassconsult.co.ke
Quarter % Change Annual % Change Change From 2007
Nairobi-18 Index Results
The Hass Land Index, Nairobi SuburbsComposite
5.72 Fold4.1%
Quarter % Change Annual % Change Change From 2007
Nairobi Satellite-14 Index Results
The Hass Composite Land Index, Nairobi Satellite Towns
6.47 Fold1.1% 6.8%
Suburb with Quarterly Increase in Land PriceHighest
Suburb with Lowest Quarterly Increase in Land Price
Suburb with Lowest Annual Increase in Land Price
Suburb with Annual Increase in Land PriceHighest
Suburb with Lowest Quarterly Increase in Land Price
Suburb with Annual Increase in Land PriceLowest
Suburb with Highest Quarterly Increase in Land Price
Suburb with Highest Annual Increase in Land Price
Donholm ( +9.3% over last quarter)
Donholm ( +26.1% over last year)
Eastleigh( -7.5% over last quarter)
Eastleigh ( -12.2% over last year)
Kitengela (+4.4% over last quarter)
Kiserian (+23% over last year)
Mlolongo (-1.6% over last quarter)
Mlolongo (-3.8% over last year)
LAND PRICE INDEXQUARTER ONE REPORT
2016
-0.2%
INDEXThe Hass Property
HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke www.hassconsult.co.ke
Nairobi, April 18th, 2016: HassConsult today unveiled land price trends for the first quarter of 2016, showing a marginal
fall in asking prices of land in Nairobi's main suburbs while those its satellite towns continued to accelerate.
The average fall of 0.2 per cent comes as land speculation moves to Nairobi's periphery with Nairobi's main suburbs now
primarily a developer market.
“Land acquisitions in Nairobi now consist primarily of developers keen to build high-density residential, commercial and
retail properties that yield development profits. These profits are secured by the sustained demand for property by both
home owners and investors alike,” said Ms. Sakina Hassanali, Head of Research and Marketing at HassConsult.
Some suburbs in Nairobi however, bucked the trend recording sharp price rises.
“Donholm's land price leap of 9.3 per cent in the quarter highlighted the role of infrastructure upgrades on land prices, as
developers move to take advantage of the areas improved accessibility,” she said.
At the same time, land prices in Nairobi's 14 satellite towns increased by 1.1 per cent over the quarter as investment in
infrastructure by both the national and county governments and the relatively low price of land in satellite towns
presents opportunities for investors looking to benefit from land price appreciation both in the short term and over the
long term.
Land in Kitengela led the pack at an increase of 4.4 per cent over the period, no doubt a response to the suburbs increasing
institutional investments.
“Athi River, Ruaka and Ruiru are some of the satellite cities beginning to attract large scale residential and retail
development. This development shift into Nairobi's periphery is expected to accelerate as infrastructure is rolled out
preparing these towns to be the new frontier for land price gains.” said Ms Sakina Hassanali.
For more information, please contact:
Sakina Hassanali,
Head of Research & Marketing
LAND PRICE INDEXQUARTER ONE REPORT
2016
INDEXThe Hass Property
HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke www.hassconsult.co.ke
Loresho 77,400,0004.87 FOLD0.5 % 9.5 % 60,000,000 100,000,000
Muthaiga 4.08 FOLD 108,100,000-0.4 % 0.5 % 67,000,000 160,000,000
Nyari 6.28 FOLD-2.0 % -2.4 % 104,600,000 90,000,000 120,000,000
Parklands 4.89 FOLD-1.6 % -1.0 % 380,200,000 320,000,000 480,000,000
Ridgeways 5.34 FOLD-2.4 % -4.6 % 61,900,000 52,000,000 70,000,000
Runda 5.57 FOLD3.7 % 15.0 % 77,100,000 60,000,000 92,000,000
Spring Valley 3.82 FOLD1.3 % -0.5 % 143,300,000 120,000,000 160,000,000
Upperhill 8.52 FOLD0.4 % 5.5 % 511,300,000 450,000,000 600,000,000
Westlands 5.34 FOLD0.6 % 3.1 % 391,100,000 308,000,000 480,000,000
Average Value Per Acre (KShs)
Quarter% Change
Annual% Change 25 Percentile 75 Percentile
Change From 2007
Nairobi SuburbsLand Index
Donholm 52,200,0005.62 FOLD 9.3 % 26.1 % 24,000,000 92,000,000
Eastleigh 5.34 FOLD 256,900,000-7.5 % -12.2 % 200,000,000 340,000,000
Gigiri 5.81 FOLD -1.9 % 5.9 % 204,300,000 143,000,000 266,600,000
Karen 6.48 FOLD0.4 % 6.8 % 50,700,000 44,000,000 60,000,000
Kileleshwa 6.31 FOLD-2.2 % -0.4 % 259,300,000 240,000,000 300,000,000
Kilimani 6.38 FOLD1.2 % 9.0 % 425,700,000 400,000,000 478,800,000
Kitisuru 5.32 FOLD-0.8 % 17.3 % 74,100,000 52,000,000 100,000,000
Langata 4.54 FOLD-0.3 % 2.9 % 48,800,000 23,600,000 60,000,000
Lavington 5.21 FOLD-0.9 % 0.5 % 216,100,000 165,000,000 250,000,000
Average Value Per Acre (KShs)
Quarter% Change
Annual% Change 25 Percentile 75 Percentile
Change From 2007
Nairobi Satellite Town Land Index
Ruaka
Syokimau
Thika
Tigoni
Athi River
Juja
Kiambu
Kiserian
Kitengela
Limuru
Mlolongo
Ngong
Ongata Rongai
Ruiru
14,700,0007.75 FOLD2.5 % 5.7 % 6,800,000 20,800,000
5.56 FOLD 26,800,000-1.6 % -3.8 % 16,000,000 40,000,000
5.68 FOLD-0.8 % 5.1 % 17,500,000 10,000,000 20,000,000
6.76 FOLD0.1 % 1.5 % 15,900,000 6,000,000 21,200,000
5.36 FOLD1.7 % 10.2 % 59,600,000 34,600,000 80,000,000
6.55 FOLD0.7 % 5.5 % 15,400,000 5,600,000 20,800,000
5.63 FOLD-0.1 % 1.1 % 17,200,000 11,200,000 23,000,000
7.13 FOLD1.3 % 2.4 % 14,600,000 5,600,000 20,000,000
7.52 FOLD1.2 % 10.0 % 18,700,000 17,500,000 21,000,000
8.79 FOLD-1.0 % 2.5 % 11,300,000 3,600,000 16,000,000
8.38 FOLD3.4 % 11.8 % 7,300,000 2,800,000 9,000,000
6.41 FOLD2.4 % 11.8 % 36,800,000 14,000,000 50,000,000
6.38 FOLD3.9 % 23.0 % 6,300,000 9,600,000
5.85 FOLD4.4 % 21.7 % 9,000,000 3,800,000 12,400,000
2,500,000
*Price Values rounded to nearest Kshs. 100,000
LAND PRICE INDEXQUARTER ONE REPORT
2016
INDEXThe Hass Property
HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke www.hassconsult.co.ke
Land Index Heat Maps
Nairobi-18 Suburbs Change in Prices Since 2007
Nairobi-14 Satellite Towns Change in Prices Since 2007
LAND PRICE INDEXQUARTER ONE REPORT
2016
5.62FOLD
5.34FOLD
5.81FOLD
6.48FOLD
6.31FOLD 6.38
FOLD
5.32FOLD
4.54FOLD
5.21FOLD
4.87FOLD
4.08FOLD
5.27FOLD
6.28FOLD
4.89FOLD
5.34FOLD
3.82FOLD
8.52FOLD
5.34FOLD
8.79FOLD
8.38FOLD
6.41FOLD
6.38FOLD
5.85FOLD
7.75FOLD
6.76FOLD
6.55FOLD
7.13FOLD
7.52FOLD
5.56FOLD
5.68FOLD 5.63
FOLD
5.36FOLD
INDEXThe Hass Property
SNAP SHOTS:
•
of Land for Sale in Nairobi covering 18 highest activity
suburbs
• Land values have increased by 5.72 fold since
December 2007
The Nairobi Suburbs-18 Land Index is representative
SNAP SHOTS:
•
price of land for sale in Nairobi covering 18 highest
activity suburbs
• The average value for land has gone from 30.3 million
in December 2007 to 173.2 million in March 2016
The annual average is representative of the average
SNAP SHOTS:
•
suburb represents in the market for 18 Nairobi
suburbs
• Land in Donholm took up 3.2% of the market,
Eastleigh took up 3.1%, Gigiri 3.5%, Karen 18.1%,
Kileleshwa 5.1% Kilimani 11.2%, Kitisuru 6.4%,
Langata 6.3%, Lavington 4.7%, Loresho 3.0%,
Muthaiga 3.9%, Nyari 3.8%, Parklands 4.1%,
Ridgeways 3.6%, Runda 8.9%, Spring Valley 5.3%,
Upperhill 2.8% and Westlands 2.7% respectively
The Mix is a measure of the percentage that each
HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke www.hassconsult.co.ke
3.2% 3.1%
3.5%
18.1%
5.1%
11.2%
6.4%6.3%
4.7%
3.0%
3.9%
3.8%
4.1%
3.6%
8.9%
5.3%
2.8% 2.7%
Supply of Advertised Land
Nairobi Suburbs -18Donholm
Eastleigh
Gigiri
Karen
Kileleshwa
Kilimani
Kitisuru
Langata
Lavington
Loresho
Muthaiga
Nyari
Parklands
Ridgeways
Runda
Spring Valley
Upperhill
Westlands
LAND PRICE INDEXQUARTER ONE REPORT
2016
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
20
08
Q1
20
09
Q1
20
10
Q1
20
11
Q1
20
12
Q1
20
13
Q1
20
14
Q1
20
15
Q1
20
16
Q1
Ave
rage
Ask
ing
Pri
ce in
KSh
.s
Average Land Price
Nairobi Suburbs -18
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
20
08
Q1
20
09
Q1
20
10
Q1
20
11
Q1
20
12
Q1
20
13
Q1
20
14
Q1
20
15
Q1
20
16
Q1
Ind
ex D
ece
mb
er
20
07
= 1
00
Hass Land Composite Index
Nairobi Suburbs -18
INDEXThe Hass Property
9.3%
8.8%
5.0%
5.3%
11.7%
3.9%2.3%6.7%7.4%
2.6%
18.0%
4.7%
11.0%
3.4%
Supply of Advertised LandNairobi Satellite -14
Athi River
Juja
Kiambu
Kiserian
Kitengela
Limuru
Mlolongo
Ngong
Ongata Rongai
Ruaka
Ruiru
Syokimau
Thika
Tigoni
SNAP SHOTS:
•
of Land for Sale in 14 Satellite towns outside Nairobi
• Land values have increased by 6.47 fold since
December 2007
The Nairobi Satellite-14 Land Index is representative
SNAP SHOTS:
•
price of land for sale outside Nairobi covering 14
highest activity Satellite towns
• The average value for land has gone from 2.4 million in
December 2007 to 15.8 million in March 2016
The annual average is representative of the average
SNAP SHOTS:
•
town represents in the market for the Nairobi 14
Satellite towns
• Land in Athi River took up 9.3% of the market, Juja
took up 8.8%, Kiambu 5.0%, Kiserian 5.3%, Kitengela
11.7% Limuru 3.9%, Mlolongo 2.3%, Ngong 6.7%,
Ongata Rongai 7.4%, Ruaka 2.6%, Ruiru 18.0%,
Syokimau 4.7%, Thika 11.0% and Tigoni 3.4%
respectively.
The Mix is a measure of the percentage that each
HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke www.hassconsult.co.ke
LAND PRICE INDEXQUARTER ONE REPORT
2016
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
20
08
Q1
20
09
Q1
20
10
Q1
20
11
Q1
20
12
Q1
20
13
Q1
20
14
Q1
20
15
Q1
20
16
Q1
Ind
ex D
ece
mb
er
20
09
= 1
00
Hass Land Composite Index
Nairobi Satellite -14
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20
08
Q1
20
09
Q1
20
10
Q1
20
11
Q1
20
12
Q1
20
13
Q1
20
14
Q1
20
15
Q1
20
16
Q1
Ave
rage
Ask
ing
Pri
ce in
KSh
.s
Average Land Price
Nairobi Satellite -14
INDEXThe Hass Property
HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke www.hassconsult.co.ke
Land as an Investment
SNAP SHOTS:
The Hass Land Composite Index, Nairobi
Satellite-14 index value was 647 outperforming
Nairobi Suburbs-18 which had an index value of
572, compared to Cattle which had a value of
139.4, Gold 156.5 and Crude Oil worst
performing with only 41.8 index value.
SNAP SHOTS:
Ksh. 1 million invested at the end of 2007 would
have been worth KSh. 6.47m if invested in land in
Nairobi Satellite-14, KSh. 5.72m if invested in
land in Nairobi Suburb-18, KSh. 2.26m if invested
in property (The Hass Sales Composite Index, All
Properties), Ksh. 2.03m if invested in bonds and
KSh. 1.14m if invested in savings.
LAND PRICE INDEXQUARTER ONE REPORT
2016
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
20
08
Q1
20
09
Q1
20
10
Q1
20
11
Q1
20
12
Q1
20
13
Q1
20
14
Q1
20
15
Q1
20
16
Q1
Land Performance vs Other Asset Classes
Nairobi Suburbs-18 Nairobi Satellite-14 Property
Equities Bonds Inflation
Savings
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
20
08
Q1
20
09
Q1
20
10
Q1
20
11
Q1
20
12
Q1
20
13
Q1
20
14
Q1
20
15
Q1
20
16
Q1
Ind
ex D
ec 2
00
7 =
10
0
Land Performance vs Commodities
Nairobi Suburbs-18 Nairobi Satellite-14 Gold
Crude Oil Live Cattle (CME)
INDEXThe Hass Property
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