The property market across Nairobi posted its strongest performance in the three months to September 2026 even as land prices recorded the slowest uptick in three years.

According to the third quarter industry survey by property tracker HassConsult, the land and property market around the capital city is getting influenced by loan costs, the supply of new units and consumer tastes.

HassConsult established that the average asking prices for property across 18 suburbs increased by 2.3 percent to KES33.88 million in the three months to September, up by 0.9 percent in Q2.

The price rally in quarter three was the sharpest jump since September 2022, Hass Property statistics shows.

During the quarter under review, the pace of growth in land prices slowed to 0.7 percent or KES233.5 million on average, reflecting a dip from the 1.4 percent recorded in Q2.

Additionally, HassConsult observed that affordable credit was partly responsible for the surge in property prices. Central Bank data shows the average interest rate for loans eased to 14.4 percent in September 2026 from a higher 17.2 percent in November 2024. At the same time, the uptake of credit in the private sector edged up to 10.6 percent.

“Lower borrowing costs and stronger private-sector credit growth are creating a more supportive environment for property investment,” said Sakina Hassanali, HassConsult Co-CEO. “In Nairobi’s established suburbs, where the supply of houses remains relatively constrained, improving financial conditions may be adding to upward price pressure.”

Data shows that Nairobi's Spring Valley area led with a 6.8 percent quarterly rise to an average KES79.4 million, followed by Westlands at 5.9 percent to KES64.5 million and Muthaiga at 5.5 per cent to KES 118.1 million. Karen and Loresho each rose 5.2 per cent, to KES 119.3 million and KES 86 million respectively.

Rents up as UN-induced demand grows

According to HassConsult, the asking prices in suburban rent market increased to 2.7 percent from 1.4 percent, approaching a three-year high and taking annual growth to 7.1 percent. 

Statistics shows that the strongest increases were reported in northern suburbs with a diplomatic and international tenant base. For instance, rents in Loresho area went up by 6.2 percent to KES 338,100 a month, Kitisuru 5.1 percent to KES 350,100, Muthaiga 4.5 per cent to KES 370,900 and Gigiri 3.9 per cent to KES 402,100.

Hassanali linked the concentration to the expansion of United Nations operations and the gradual relocation of personnel to Nairobi, which she said is “providing an additional source of demand in these locations, alongside the city’s wider professional and domestic rental market.”

Performance of satellite towns

The asking prices for property in satellite towns eased to 0.6 percent to about KES14.43 million, while the pace of increase in monthly rent slowed to 0.4 percent from 1.1 percent.

Houses in Ngong posted the steepest fall in house prices at 1.2 per cent to KES 19.1 million, followed by neigbouring Ongata Rongai at -1.0 percent, Juja at -0.6 per cent and Kitengela at -0.5 percent.

HassConsult attributes the dip in prices to differences in housing supply, purchasing capacity and the character of demand, noting that satellite towns “remain more sensitive to affordability and competing housing options.”

Land loses its shine

Investors holding land for speculative purposes across several areas around the city saw a dip in asking prices during the period under focus. A number of areas recorded a reversal in asking prices with Langata’s decreasing to 0.2 percent from 4.1 percent in Q2. Land prices in Muthangari recorded -3.1 percent growth even as Gigiri prices contracted by 2.2 percent.

In the suburbs, however, 13 of 18 locations still recorded positive quarterly appreciation, led by Karen at 3.0 percent, Westlands 2.7 per cent and Kitisuru 2.7 per cent. 

Satellite town land fared worse, rising just 0.65 percent to KES 33.7 million per acre, with Mlolongo (-2.2 per cent) and Kiserian (-2.0 per cent) among the weakest. 

Over the past two years, land appreciation in 12 of the 14 satellite towns has trailed the modelled return from rolling 91-day Treasury bills, with only Ruiru and Juja outperforming the benchmark.

“As returns from passive landholding become less competitive with alternative investments, the economic justification for purchasing land may increasingly depend on its intended use,” Hassanali said. “This could signal a gradual shift towards more use-driven investment in some of Nairobi’s satellite towns, particularly as these markets mature.”

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