Nairobi outskirts property boom ends as prices drop

A decades-long property boom on the outskirts of Nairobi, including Kiambu, Kitengela and Ngong, is ending as home prices drop and land cost growth slows to its weakest pace in eight years. HassConsult reports house prices in satellite towns fell in the two quarters to June, while land costs rose just 1.4 percent, a sharp departure from double-digit annual gains since 2002. Eight of ten tracked towns saw home price declines, led by Ongata Rongai and Ngong, as developers struggle with oversupply and buyer resistance. The slowdown follows a shift in investor preference toward equities, bonds, and money market funds, with the Nairobi Securities Exchange returning 31 percent this year. Real wages grew only 2.0 percent last year, still below 2020 levels, while infrastructure improvements had previously fueled land speculation.