HOUSE PRICE INDEX QUARTER FOUR REPORT House prices in Nairobi’s … · 2020-07-17 · • House prices in satellite towns drop by 0.5 per cent in 2019, the first ever drop since

• House prices in satellite towns drop by 0.5 per cent in 2019, the first ever drop since 2008, showing home buyers in these

areas are finding the economic environment challenging

· Overall prices for all properties marginally improve by 1.2 per cent over the quarter

· Rents in satellite towns drop by 2.1 per cent in 2019, the first ever drop showing that landlords are less demanding in

response to challenges in the rental market

· Ridgeways suburb and Limuru town prove resilient posting annual house prices increases of 10.8 per cent and 9.5 per

cent respectively

· Rents in Nairobi suburbs cool falling by 2.3 per cent on an annual basis and 1.3 per cent over the quarter

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya

T: 0709 479 000 | E: [email protected]

Property Index Highlights:

www.hassconsult.co.ke

HOUSE PRICE INDEXQUARTER FOUR REPORT

2019

Quarter % Change Annual % Change Change From 2007

All Properties

The Hass Composite Rental Index

1.85 Fold 0.5% -1.2%

Segment with Highest Quarterly Increase in Rental Price Apartments in Langata ( +4.8% over last quarter)

Kileleshwa (-12.0% over last year)

All Properties

Segment with Lowest Quarterly Increase in Rental Price

Segment with Highest Annual Increase in Rental Price

Segment with Lowest Annual Increase in Rental Price

Apartments in Kitengela ( -3.5% over last quarter)

Houses in Ngong ( +18.6% over last year)

Detached Houses

Semi Detached Houses

Apartments

1.77 Fold 0.2% -5.3%

2.25 Fold -0.04% 0.4%

1.73 Fold 1.7% 5.6%

Quarter % Change Annual % Change Change From 2007

All Properties

The Hass Composite Sales Index

2.38 Fold 1.2% -3.5%

Segment with Highest Quarterly Increase in Sales Price Houses in Limuru (+3.3 % over last quarter)

All Properties

Segment with Lowest Quarterly Increase in Sales Price

Segment with Highest Annual Increase in Sales Price

Segment with Lowest Annual Increase in Sales Price

Apartments in Langata ( -3.9 % over last quarter)

Houses in Ridgeways ( +10.8 % over last year)

Detached Houses

Semi Detached Houses

Apartments

2.25 Fold 1.4% -7.1%

2.92 Fold 1.5% 6.2%

-2.1% 2.27 Fold-0.003%

Houses in Juja ( -9.6% over last year)

Houses in Kiserian ( -7.8% over last year)

House prices in Nairobi’s satellite townsfall for the first time in history while the

overall property market holds firm

·


T: 0709 479 000 | E: [email protected] www.hassconsult.co.ke

HassConsult today released the annual Hass Property Index results for 2019, showing that property prices in satellite towns dropped by 0.5 percent on an annual basis, the first such drop since 2008 when the index was launched.

The fall in house prices in satellite towns on an annual basis bucks the trend as these suburbs have traditionally recorded annual growth in house prices driven by investors who are holding off buying decisions due to the challenging economic environment.

“The fall in prices in satellite towns, the first of its kind, shows that investors are holding off buying decisions which is a defensive strategy taken when there is economic uncertainty. This situation can however change if the environment improves going forward,” said Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.

Despite the fall of prices in the satellite towns on an annual basis there was a 1.2 percent increase across all properties with the Ridgeways suburb and Limuru town posting annual house prices increases of 10.8 percent and 9.5 percent respectively.

Ridgeways and Limuru towns also posted the strongest house prices over the quarter at 2.9 percent and 3.3 percent respectively.

Parklands recorded the highest drop over the year at 5.2 percent while Runda was at the tail end over the last quarter with prices dropping by 1.6 percent.

Juja recorded the highest drop over both the quarter and year at 1.9 percent and 9.6 percent respectively courtesy of a price correction in the satellite town.

On the rental front satellite towns recorded a 2.1 percent drop in rents over the year while Nairobi recorded a 2.3 percent drop in asking prices over the same period.

“Landlords are becoming less demanding especially in areas where there is an oversupply of similar units,” said Ms. Sakina Hassanali.

For more information, please contact:

Sakina Hassanali, Head of Development Consulting & Research


2019



Loresho 2.63 FOLD0.9 % 6.8 %

Muthaiga 2.45 FOLD 0.5 % 8.4 %

Nyari Estate 2.81 FOLD0.3 % 6.6 %

Ridgeways 2.76 FOLD 2.9 % 10.8 %

Runda 3.20 FOLD -1.6 % -0.1 %

Spring Valley 2.45 FOLD 0.8 % 5.0 %

Westlands 3.10 FOLD-0.1 % 2.5 %

Quarter% Change

Annual% Change

Change From 2007

Nairobi Suburbs Property Index - All Houses

Donholm 3.49 FOLD1.4 % 4.3 %

Gigiri 2.93 FOLD 0.6 % 3.6 %

Karen 3.51 FOLD-0.2 % 2.8 %

Kileleshwa 2.82 FOLD -1.2 % -1.6 %

Kilimani -0.9 % -0.7 %

Kitisuru 2.94 FOLD 0.4 % 2.1 %

Langata 4.29 FOLD 1.1 % -4.0 %

Lavington 2.91 FOLD 0.2 % 2.8 %

Quarter% Change

Annual% Change

Change From 2007

Nairobi Suburbs PropertyIndex - Apartments

Kileleshwa

Kilimani

Langata

Lavington

Parklands

Upperhill

Westlands

Riverside

3.08 FOLD -0.6 % 2.6 %

2.83 FOLD

2.32 FOLD

0.4 %

-1.2 %

2.7 %

-1.2 %

2.56 FOLD 0.9 % 0.2 %

2.29 FOLD -2.9 % -7.8 %

2.34 FOLD -3.9 % -8.1 %

2.34 FOLD-2.5 % -5.9 %

2.93 FOLD-0.4 % -5.2 %

2.18 FOLD

2.66 FOLD

1.77 FOLD

2.13 FOLD

1.85 FOLD

1.74 FOLD

3.25 FOLD

Change From 2007

1.78 FOLD

2.00 FOLD

1.85 FOLD

2.30 FOLD

1.96 FOLD

2.53 FOLD

1.64 FOLD

2.69 FOLD

-7.0 %

0.6 %

2.3 %

-4.1 %

0.6 %

-3.6 %

5.1 %

Annual% Change

-0.1 %

1.7 %

-2.1 %

-1.4 %

2.3 %

-5.4 %

-2.1 %

-0.9 %

-3.0 %

0.6 %

1.2 %

-2.9 %

-0.6 %

-1.4 %

0.9 %

Quarter% Change

3.2 %

0.4 %

-0.4 %

-1.8 %

-0.4 %

-2.6 %

-0.3 %

-1.7 %

Sales Prices Rental Prices


Change From 2007

1.99 FOLD

1.73 FOLD

2.20 FOLD

1.61 FOLD

2.51 FOLD

2.97 FOLD

1.96 FOLD

2.50 FOLD

Annual% Change

4.2 %

4.7 %

15.9 %

-3.5 %

7.0 %

-2.3 %

3.9 %

2.3 %

Quarter% Change

2.1 %

2.5 %

4.8 %

-0.01 %

2.0 %

-0.5 %

0.6 %

-1.7 %


2019

House Price Trends By Suburb in Nairobi

Apartment Price Trends By Suburb Nairobi

2.56 FOLD



Tigoni -1.7 % 0.3 %

Quarter% Change

Annual% Change

Change From 2007

Nairobi Satellite Property Index - All houses

Athi River 3.13 FOLD -1.1 % 2.1 %

Juja 2.41 FOLD -1.9 %

Kiambu 2.79 FOLD0.6 % 4.5 %

Kiserian 2.55 FOLD -0.9 % -0.9 %

Kitengela 2.83 FOLD-0.8 % -3.2 %

Limuru 3.3 % 9.5 %

Ngong -0.8 % 1.0 %

Ongata Rongai 0.04 % -0.7 %

Ruiru 0.3 % -1.9 %

Quarter% Change

Annual% Change

Change From 2007

Nairobi Satellite Property Index - Apartments

Athi River

Kiambu

Kitengela

Mlolongo

Ngong

Ongata Rongai

Ruaka

Syokimau

Thika

2.20 FOLD -1.6% 2.9 %

2.01 FOLD 1.4 % 5.0 %

2.03 FOLD 1.7 % 5.8 %

1.85 FOLD 1.8 % 2.9 %

2.14 FOLD -1.3 % 9.1 %

2.68 FOLD -0.3 % -0.6 %

2.10 FOLD 0.3 % 6.0 %

1.79 FOLD 1.6 % 3.9 %

2.94 FOLD 1.9 % 9.2 %

2.16 FOLD

Change From 2007

1.48 FOLD

2.95 FOLD

1.97 FOLD

2.30 FOLD

1.84 FOLD

2.48 FOLD

2.73 FOLD

2.31 FOLD

2.42 FOLD

0.9 %

Annual% Change

-6.2 %

1.7 %

-4.8 %

-7.8 %

-0.3 %

-2.1 %

-1.4 %

3.0 %

-0.1 %

-0.5 %

Quarter% Change

-0.04%

4.5 %

-1.6 %

-0.9 %

2.6 %

-1.3 %

-0.4 %

2.6 %

0.8 %



Change From 2007

1.45 FOLD

2.53 FOLD

1.97 FOLD

2.30 FOLD

2.25 FOLD

2.21 FOLD

2.55 FOLD

1.93 FOLD

2.27 FOLD

Annual% Change

3.7 %

6.4 %

-7.1 %

3.3 %

18.6 %

3.3 %

0.9 %

-0.7 %

10.6 %

Quarter% Change

-0.5 %

0.5 %

-4.5 %

-3.0 %

3.0 %


2019

Apartment Price Trends By Town in Nairobi’s Satellite Areas

House Price Trends By Town in Nairobi’s Satellite Areas

4.0 %

-0.1 %

-1.2 %

3.0 %

2.33 FOLD

3.15 FOLD

2.95 FOLD

2.62 FOLD

3.25 FOLD

-9.6 %

SNAP SHOTS:

• The Hass Composite Sales Index is representative of

all properties for sale in Kenya.

• Property values have increased by 4.40 times since

2000.

• The index shows a property price rise of 0.6% in the

last month, rise of 1.2% in the last quarter and a

-3.5% fall in the last year.

SNAP SHOTS:

• The annual average is representative of the average

price of all properties offered for sale in Kenya.

• The average value for a property has gone from 7.1

million in December 2000 to 31.6 million in

December 2019.

• The average value for a 4-6 bedroom property is

currently 40.6 million.

• The average value for a 1-3 bedroom property is

currently 14.4 million.

SNAP SHOTS:

• The Mix by Year is a measure of the percentage that

each type of property represents in the market.

• In 2001, Apartments took up 23.5% of the market,

semi-detached took up 24.5% of the market and

detached houses took up 52% of the market.

• In December 2019 however, Apartments took up

61.1% of the market, Semi-detached Houses took

up 25.7% of the market and Detached Houses took

up 13.2% of the market.




2019

The Hass Sales IndexAll Property Types

Annual AverageAll Property Types

Mix by YearAll Property Types

050

100150200250300350400450500

20

10

Q2

20

10

Q4

20

11

Q2

20

11

Q4

20

12

Q2

20

12

Q4

20

13

Q2

20

13

Q4

20

14

Q2

20

14

Q4

20

15

Q2

20

15

Q4

20

16

Q2

20

16

Q4

20

17

Q2

20

17

Q4

20

18

Q2

20

18

Q4

20

19

Q2

20

19

Q4

Ind

ex 2

00

0 =

10

0

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,00055,000

20

10

Q2

20

10

Q4

20

11

Q2

20

11

Q4

20

12

Q2

20

12

Q4

20

13

Q2

20

13

Q4

20

14

Q2

20

14

Q4

20

15

Q2

20

15

Q4

20

16

Q2

20

16

Q4

20

17

Q2

20

17

Q4

20

18

Q2

20

18

Q4

20

19

Q2

20

19

Q4A

Skin

g P

rice

KSH

.s 1

00

0s

1 to 3 Beds 4 to 6 Beds Mix Adj

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Apartments (1-3)

Semi-detached (1-3)

Detached (1-3)

Apartments (4-6)

Semi-detached (4-6)

Detached (4-6)

SNAP SHOTS:

• The Hass Composite Letting Index is representative

of all properties for rental in Kenya.

• Rents have increased by 3.91 fold since 2001.

• The index shows a property rise of 0.5% in the last

month, rise of 0.5% in the last quarter and have

fallen by -1.2% in the last year.

SNAP SHOTS:

• The annual average is representative of the average

rent of all properties offered to let in Kenya.

• The average rental for a property has gone from

Kshs. 38,516 in December 2000 to Kshs. 150,704 in

December 2019.

• The average rent for a 4-6 bedroom property is

currently Kshs. 227,472.

• The average rent for a 1-3 bedroom property is

currently Kshs. 81,553.



SNAP SHOTS:

• The Mix by Year is a measure of the percentage that

each type of property represents in the market.

• In 2001, Apartments took up 45.3% of the market,

Semi-detached Houses took up 20.5% of the market

and Detached Houses took up 34.2% of the market.

• In December 2019 however, Apartments took up

63.2% of the market, Semi-detached Houses took

up 24.5% of the market and Detached Houses took

up 12.4% of the market.

www.hassconsult.co.ke


2019

The Hass Rental IndexAll Property Types

Annual AverageAll Property Types

Mix by YearAll Property Types

0.0050.00

100.00150.00200.00250.00300.00350.00400.00450.00500.00

20

10

Q2

20

10

Q4

20

11

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20

11

Q4

20

12

Q2

20

12

Q4

20

13

Q2

20

13

Q4

20

14

Q2

20

14

Q4

20

15

Q2

20

15

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20

16

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20

16

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20

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20

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20

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20

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Ind

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0 =

10

0

0

50

100

150

200

250

300

20

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20

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20

11

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20

11

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20

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20

12

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20

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20

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20

14

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20

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20

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20

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20

16

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20

17

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20

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20

18

Q2

20

18

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20

19

Q2

20

19

Q4A

Skin

g P

rice

KSH

.s 1

00

0s

1 to 3 Beds 4 to 6 Beds Mix Adj

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Apartments (1-3)

Semi-detached (1-3)

Detached (1-3)

Apartments (4-6)

Semi-detached (4-6)

Detached (4-6)

Documents

HOUSE PRICE INDEX QUARTER FOUR REPORT House prices in Nairobi’s … · 2020-07-17 · • House prices in satellite towns drop by 0.5 per cent in 2019, the first ever drop since