Land Price Index
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The Hass Property INDEX Q2.15 LAND INDEX IN ASSOCIATION WITH Expanded land index shows property in satellite towns has had higher return on investment • Hass and Stanlib today unveil the extended Land Index, covering satellite towns in the Nairobi environs. • The new data shows strong development and investment in these areas with land price growth equaling and bettering those in the inner city suburbs. • Since 2007, land in the inner city suburbs have increased five fold, while land prices in the satellite towns have increased six fold. • Over the past 7 years, Athi River and Juja have posted the best returns, while Kiambu has shown the strongest growth over the 12 months and Kiserian in the quarter ended June 2015. • A high interest rate environment further exacerbated by the recent increase of the central bank rate may drive demand for inner city land as developers move to areas with cash driven purchases. Land Index Highlights: The Hass Composite Land Index, Nairobi Suburbs Quarter % Change Annual % Change Change From 2007 Nairobi-18 Index Results 1.6% 13.6% 5.59 Fold Suburb with Highest Quarterly Increase in Land Price Donholm ( +5.1% over last quarter) Suburb with Highest Annual Increase in Land Price Loresho ( +31.5% over last year) Suburb with Lowest Quarterly Increase in Land Price Eastleigh ( -5.8% over last quarter) Suburb with Lowest Annual Increase in Land Price Eastleigh ( -5.0% over last year) The Hass Composite Land Index, Nairobi Satellite Towns Quarter % Change Annual % Change Change From 2007 Nairobi Satellite-14 Index Results 1.9% 8.3% 6.17 Fold Suburb with Highest Quarterly Increase in Land Price Kiserian ( +5.4% over last quarter) Suburb with Highest Annual Increase in Land Price Kiambu ( +21.5% over last year) Suburb with Lowest Quarterly Increase in Land Price Ongata Rongai ( -1.2% over last quarter) Suburb with Lowest Quarterly Increase in Land Price Ongata Rongai ( -0.4% over last year) HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected] The Hass Property INDEX Q2.15 LAND INDEX IN ASSOCIATION WITH HassConsult and Stanlib today unveiled the extended Land Index for Quarter 2 of 2015, covering satellite towns in the Nairobi environ. The index, based on advertised land prices in the surveyed areas since 2007, now comprises data from 18 of the city's suburbs as well data from the satellite towns of Athi River, Juja, Kiambu, Kiserian, Kitengela, Limuru, Mlolongo, Ngong, Ongata Rongai, Ruaka, Ruiru, Syokimau Thika and Tigoni. The new data shows strong development and investment in these areas with land price growth equaling and bettering those in the inner city suburbs. Since 2007, land in the inner city suburbs have increased five fold, while land prices in the satellite towns have increased six fold. Effectively what this means, is that investors can receive the same returns on property in satellite areas with a lower cost to market entry. It is clear that as infrastructure has developed in Nairobi, specifically the upgrading of major roads, so have the satellite towns that are connected by them. Over seven years, Athi River posted the highest rises, experiencing an 8.4 fold increase followed by Juja, at 7.83 fold. Kiserian and Kitengela saw the biggest increases in satellite areas over the past quarter, growing by 5.4% and 5.0% respectively. Kiambu however shows the biggest year to date growth at 21.5%. Ruaka, the most expensive acreage of the satellite towns has enjoyed a 9.4% increase in the year to end June 2015 with an average selling price of Ksh 56.6 million per acre. Kiserian has shown significant growth over the year at 14.5%, but still has the lowest price per acre out of the satellite towns at Ksh 5.42 million. The recent increases in the CBR may once again see investors opting for inner city investments, as we saw them do in 2012, that are less volatile and returns that are more predictable. The biggest inner city gain in the second quarter of 2015 was Donholm, which has gained 5.1% and has had an overall increase in value of 10.7% in the past year. Eastleigh has seen the biggest decline in land price falling 5.8% in the quarter and 5% over the last year. “Land continues to be a solid investment, with returns consistently beating other investment avenues such as the stock markets and bond markets,” said Kenneth Kaniu, Chief Investment Officer at Stanlib, commenting on the index. In June 2015, Upper Hill held onto the top position of having the most expensive land acreage in Nairobi, selling at an average price of Ksh. 493 million per acre, 1.7% up in the quarter and 15.3% up for the year. While Donholm has experienced a 5.1% growth over the quarter, it still lays claim to the lowest cost per acre in the inner city at Ksh43.5 million. “Current data highlights real value areas with upcoming development potential and affirm that strong returns continue in selected mature suburbs. Research and data are critical to successful property investment.” said Mr Muratha. For more information, please contact: Kenneth Kaniu - Chief Investment Officer, Stanlib Sakina Hassanali - Head of Research, HassConsult HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected] The Hass Property INDEX Q2.15 LAND INDEX IN ASSOCIATION WITH Nairobi Suburbs Quarter Annual Change Average Value 25 Percentile 75 Percentile Land Index % Change % Change From 2007 Per Acre Donholm 5.1 % 10.7 % 4.68 FOLD 43,500,000 28,000,000 50,000,000 Eastleigh -5.8 % -5.0 % 5.73 FOLD 276,000,000 228,000,000 320,000,000 Gigiri 0.8 % 17.8 % 5.53 FOLD 194,000,000 161,250,000 245,000,000 Karen 1.8 % 11.3 % 6.18 FOLD 48,300,000 40,000,000 55,000,000 Kileleshwa 0.7 % 14.1 % 6.37 FOLD 262,000,000 240,000,000 296,700,000 Kilimani 5.0 % 22.1 % 6.14 FOLD 410,000,000 360,000,000 450,550,000 Kitisuru 3.5 % 15.6 % 4.69 FOLD 65,300,000 52,000,000 77,700,000 Langata 2.3 % 11.4 % 4.51 FOLD 48,500,000 40,000,000 55,000,000 Lavington -0.6 % 11.3 % 5.15 FOLD 214,000,000 152,400,000 253,000,000 Loresho 1.9 % 31.5 % 4.53 FOLD 72,000,000 60,000,000 79,800,000 Muthaiga 0.5 % 18.0 % 4.08 FOLD 108,000,000 74,250,000 140,000,000 Nyari -0.9 % 18.0 % 6.37 FOLD 106,000,000 90,000,000 120,000,000 Parklands 0.5 % 8.5 % 4.96 FOLD 386,000,000 325,000,000 472,000,000 Ridgeways -1.0 % 29.8 % 5.54 FOLD 64,200,000 53,300,000 70,000,000 Runda 4.4 % 9.6 % 5.06 FOLD 69,900,000 56,000,000 80,000,000 Spring Valley -1.2 % -0.3 % 3.79 FOLD 142,000,000 120,000,000 167,500,000 Upperhill 1.7 % 15.3 % 8.22 FOLD 493,000,000 426,000,000 580,800,000 Westlands 0.2 % 9.0 % 5.19 FOLD 380,000,000 273,750,000 480,000,000 Nairobi Satellite Town Quarter Annual Change Average Value 25 Percentile 75 Percentile Land Index % Change % Change From 2007 Per Acre Athi River 0.8 % 11.6 % 8.64 FOLD 11,100,000 3,800,000 16,000,000 Juja 4.3 % 7.3 % 7.83 FOLD 6,790,000 2,800,000 9,200,000 Kiambu 2.4 % 21.5 % 5.87 FOLD 33,700,000 13,575,000 44,750,000 Kiserian 5.4 % 14.5 % 5.47 FOLD 5,420,000 1,500,000 7,800,000 Kitengela 5.0 % 9.0 % 5.05 FOLD 7,720,000 2,800,000 10,700,000 Limuru 3.0 % 16.1 % 7.55 FOLD 14,300,000 7,980,000 16,400,000 Mlolongo 1.3 % 5.0 % 5.85 FOLD 28,200,000 14,360,000 41,250,000 Ngong 3.6 % 12.4 % 5.60 FOLD 17,200,000 10,000,000 20,000,000 Ongata Rongai -1.2 % -0.4 % 6.58 FOLD 15,500,000 7,200,000 20,000,000 Ruaka 4.7 % 9.4 % 5.09 FOLD 56,600,000 44,000,000 79,000,000 Ruiru 0.7 % 3.3 % 6.25 FOLD 14,700,000 5,200,000 20,000,000 Syokimau -0.5 % 5.5 % 5.54 FOLD 16,900,000 10,700,000 23,500,000 Thika 0.4 % 5.4 % 7.00 FOLD 14,300,000 5,000,000 20,000,000 Tigoni 3.6 % 6.5 % 7.08 FOLD 17,600,000 15,900,000 20,000,000 HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected] The Hass Property INDEX Q2.15 LAND INDEX IN ASSOCIATION WITH Satellite Towns Land Index Heat Maps Change in Prices Since 2007 Current Price Versus Market Activity HassConsult Limited | ABC Place, Waiyaki Way | P.O.