Annual Report.Cdr

The Hass Property INDEX

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Rents soar in Upper Hill, South B, South C, and Nyali • Residential rents rose in every captured suburb in Kenya during 2013 • Asking rents in Upper Hill, South C, South B and Nyali rose more rapidly than in any other suburb, up by 19 to 23 per cent on a year earlier. Lavington saw rises of just 2 per cent as consumers opted for more accessible Kileleshwa and Kilimani • The other suburbs with the most subdued rent rises were Embakasi, Mlolongo and Brookside • Residential sales prices recorded a far more mixed record, emphasizing the importance for developers in sound business strategy • 9 out of 42 suburbs experienced falling house prices while prices rose the most rapidly in South C, Nyali, South B and Thika • Muthaiga, Brookside, Lavington, Langata and State House are experiencing falling prices. Many of these areas were previously fashionable locations which are now no longer development hot spots

2013 Index Highlights

HASS COMPOSITE SALES INDEX Average Asking Price (Kshs) % Change in 2013 All Properties 24,184,047 0.3% Stand Alone Houses 34,660,721 0.5% Townhouses 19,351,064 0.1% Apartments 12,214,150 -0.2%

HASS COMPOSITE LETTING INDEX Average Asking Rent (Kshs) % Change in 2013

All Properties 120,372 8.5% Stand Alone Houses 185,029 8.5%

Townhouses 126,724 19.4%

Apartments 69,857 2.2%

SUBURB REVIEW 2013 Most expensive suburb to buy in Muthaiga Most expensive suburb to rent in Nyari Suburb with highest increase in average sale prices South C ( 15%) Suburb with highest increase in average rental prices UpperHill ( 23%)

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Hass Consult today unveiled its annual report on house price movements in Kenya, showing a surge in mid- market pricing for both rents and sales in the areas where commercial building has been most active.

The opening of many new headquarters and offices along the Mombasa Road, and the heavy traffic that acts as a barrier to commuters working in them, fueled a surge in both rents and house sale prices in the immediately adjacent suburbs of South C and South B.

Yet the nearby Embakasi, home to the lower middle class, saw no such growth, with rents and house prices rising very little, while Mlolongo, also out along the Mombasa Road, stood out as a beacon of strategic disappointment.

The rush of apartment building in the area, on the premise of a new commuter belt stretching even to Athi River, saw property go in that offered too few perks in space, pricing and lifestyle versus the considerable extra commuting time.

“This survey brings home how vital it is to understand market positioning and demand trends in property choices and investment,” said Ms Sakina Hassanali, Head of Research and Marketing for HassConsult. “It is not at all the case that all property earns good returns.”

“Property in areas that are up and coming, or that satisfies real and current shortages, or that correctly foreshadows future needs – all such properties continue to rise in value and pricing.”

“But ill conceived projects, and properties in areas of lesser demand, can even experience price falls,” she said.

For more information, please contact: Sakina Hassanali - Head of Marketing & Research HassConsult Ltd ABC Place, Westlands Tel: +254 020 4446914

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Average Sale Prices by Suburb Location Q4 2012 (Kshs) Q4 2013 (Kshs) % Change

Muthaiga 65,000,000 62,100,000 -4% Kitisuru 50,500,000 52,500,000 4% Nyari 49,100,000 52,300,000 7% Lower Kabete 47,300,000 48,700,000 3% Runda 46,900,000 48,000,000 2% Karen 43,900,000 45,100,000 3% Rosslyn 43,700,000 44,800,000 3% Wispers 43,500,000 44,600,000 3% Gigiri 42,100,000 44,500,000 6% Kyuna Estate 41,700,000 43,000,000 3% Spring Valley 37,200,000 39,200,000 5% Brookside 32,900,000 32,400,000 -2% Muthaiga North 31,800,000 33,700,000 6% Riverside 27,900,000 30,100,000 8% Lavington 27,500,000 26,700,000 -3% Westlands 22,200,000 23,100,000 4% Mountain View 21,500,000 21,300,000 -1% Upperhill 18,000,000 19,700,000 9% Kilimani 17,700,000 18,100,000 2% Langata 17,500,000 17,300,000 -1% Kileleshwa 17,000,000 18,100,000 6% Nyali 17,000,000 19,400,000 14% Parklands 16,800,000 18,000,000 7% Valley Arcade 14,000,000 13,800,000 -1% State House 13,100,000 12,900,000 -2% Hurlingham 12,700,000 13,300,000 5% Kiambu 12,000,000 12,500,000 4% South C 11,000,000 12,600,000 15% South B 10,300,000 11,600,000 13% Fedha Estate 10,200,000 10,100,000 -1% Nairobi West 9,700,000 9,900,000 2% Thika 9,500,000 10,700,000 13% Industrial Area 8,600,000 8,800,000 2% Kitengela 8,400,000 9,200,000 10% Ngong 8,400,000 9,300,000 11% Madaraka 7,100,000 7,000,000 -1% Embakasi 6,600,000 7,200,000 9% Ongata Rangai 6,600,000 6,700,000 2% Imara Daima 6,300,000 6,700,000 6% Athi River 6,300,000 6,900,000 10% Nyayo Estate 4,980,000 5,300,000 6% Tena 4,900,000 5,000,000 2% Koma Rock 4,100,000 4,400,000 7%

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Percentage Change in Suburb Sale Prices

2013 Hass Sales Index Annual % Change 25% by Suburb 2012 20%

15%

10%

0% s t a a a a a e e e e ai t t t t er ali ea en asi on ari -5% ela a es a a a ak t ock ade ena t t t side side ar alley T c Ny Gigiri Ny Thik abet K er osslyn tlands Runda Ngong eng a North R Kiambu ving South C South B Lang Kitisuru ook a Daima Wisper o Es e House Kilimani a Rang thi Riv es arklands ain View t obi W t y trial Ar Riv Upperhill Kit Embak t Muthaig er K P A La oma R Madar a Br a a W Kileleshw K yuna Es edha Es Hurlingham St alley Ar Imar F Spring V K Ny

Nair -10% V Low Ong Indus Moun Muthaig

2012

Hass Sales Index Annual % Change 25% by Suburb 2012 20%

15%

10%

0% s t a a a a e e e e ai a t t t t er ali ea en asi ari on ela a es a a a ak t ock ade ena t t t side side ar alley T c Ny Gigiri Ny abet K Thik er osslyn tlands Runda Ngong eng a North R Kiambu ving South C South B Lang Kitisuru ook a Daima Wisper o Es e House Kilimani a Rang thi Riv es arklands ain View t obi W t y trial Ar Riv Upperhill Kit Embak t Muthaig er K P A La oma R Madar a Br a a W Kileleshw K yuna Es edha Es Hurlingham St alley Ar Imar F Spring V K Ny Nair V Low Ong Indus Moun Muthaig

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Average Rentals by Suburb Location Q4 2012 (Kshs) Q4 2013 (Kshs) % Change Nyari 243,000 251,700 4% Muthaiga 216,500 227,400 5% Gigiri 214,300 225,500 5% Rosslyn 203,000 214,600 6% Runda 200,000 212,800 6% Kyuna Estate 186,500 198,200 6% Hill View Estate 175,000 183,100 5% Spring Valley 172,500 185,300 7% Wispers 169,000 177,400 5% Karen 167,000 179,800 8% Kitisuru 153,600 164,800 7% Lower Kabete 146,900 158,700 8% Brookside 130,000 135,400 4% Lavington 126,000 128,200 2% Loresho 120,000 128,700 7% Riverside 115,000 115,000 0% Muthaiga North 107,000 119,800 12% Westlands 106,800 114,700 7% State House 104,600 112,700 8% Valley Arcade 97,000 105,600 9% Kileleshwa 93,400 106,900 14% Kilimani 92,700 104,300 13% Upperhill 79,900 98,100 23% Langata 68,900 74,900 9% Parklands 68,000 76,400 12% Hurlingham 67,700 74,700 10% Nyali 61,400 73,800 20% Industrial Area 55,000 60,600 10% Mountain View 55,000 57,600 5% Kitengela 47,700 53,400 12% Thika 42,000 48,700 16% Athi River 41,500 44,600 7% South C 36,500 43,800 20% Ngong 32,600 37,100 14% South B 29,500 35,200 19% Imara Daima 29,100 31,200 7% Embakasi 27,500 28,600 4% Nairobi West 27,400 30,600 12% Nyayo Estate 27,200 27,900 3% Madaraka 27,000 30,300 12% Jamhuri 26,100 29,100 11% Mlolongo 24,000 25,000 4% Donholm 24,000 26,400 10% Ongata Rangai 23,100 24,500 6% Fedha Estate 23,000 24,800 8% Kiambu 20,000 21,800 9% Buru Buru 20,000 21,300 6% Koma Rock 16,000 17,400 9% Tena 14,200 15,800 11%

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Percentage Change in Suburb Rental Prices

2013 Hass Lettings Index Annual % Change by Suburb 25%

20%

15%

10%

0% s t a a a a a e e e e e ai t t t t t er ali ea en asi on ari ela a es a a a a ak t ock ade ena t t t t side side ar alley esho T c Ny Gigiri Ny Thik abet K er osslyn tlands Runda Ngong eng a North R Kiambu ving South C South B Lang Kitisuru ook Jamhuri a Daima Lor Wisper o Es e House Kilimani a Rang thi Riv es arklands ain View t obi W t y trial Ar Riv Donholm Upperhill Kit Embak t Muthaig er K Mlolongo P A La oma R Madar a Br Buru a a W Kileleshw K yuna Es edha Es Hurlingham St alley Ar Imar F Spring V K Ny Nair V Low Ong Indus Moun Hill View Es Muthaig

2012 25% Hass Lettings Index Annual % Change by Suburb 20%

15%

10%

0% s t a a a a a e e e e e ai t t t t t er ali ea en asi ari on ela a es a a a a ak t ock ade ena t t t t side side ar alley esho T c Ny Gigiri Ny Thik abet K er osslyn tlands Runda Ngong eng a North R Kiambu ving South C South B Lang Kitisuru ook Jamhuri a Daima Lor Wisper o Es e House Kilimani a Rang thi Riv es arklands ain View t obi W t y trial Ar Riv Donholm Upperhill Kit Embak t Muthaig er K Mlolongo P A La oma R Madar a Br Buru a a W Kileleshw K yuna Es edha Es Hurlingham St alley Ar Imar F Spring V K Ny Nair V Low Ong Indus Moun Hill View Es Muthaig

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Hass Sale Index - Nairobi by Zone Annual Average Price - Nairobi by Zone

Zone A Zone B Zone C Zone A Zone B Zone C

400 55,000 350 50,000 45,000 300 40,000 250 35,000 SH.s 1000s 200 30,000 25,000

x 2000 =100 150 20,000 100 15,000 Inde 10,000 50 5,000 0 ASking Price K 0 2002 Q4 2003 Q2 2003 Q4 2004 Q2 2004 Q4 2005 Q2 2005 Q4 2006 Q2 2006 Q4 2007 Q2 2007 Q4 2008 Q2 2008 Q4 2009 Q2 2009 Q4 2010 Q2 2010 Q4 2011 Q2 2011 Q4 2012 Q2 2012 Q4 2013 Q2 2013 Q4 2002 Q4 2003 Q2 2003 Q4 2004 Q2 2004 Q4 2005 Q2 2005 Q4 2006 Q2 2006 Q4 2007 Q2 2007 Q4 2008 Q2 2008 Q4 2009 Q2 2009 Q4 2010 Q2 2010 Q4 2011 Q2 2011 Q4 2012 Q2 2012 Q4 2013 Q2 2013 Q4

Sale Price Index - Zone A Sale Price Index - Zone B Sale Price Index - Zone C

54,000 25,000 12,000

52,000 24,000 KSH.s KSH.s KSH.s 50,000 1000s 23,000 11,000 1000s 1000s 48,000 22,000

46,000 21,000 10,000 2012 Q4 2013 Q2 2013 Q4 2012 Q4 2013 Q2 2013 Q4 2012 Q4 2013 Q2 2013 Q4

Hass Letting Index - Nairobi by Zone Annual Average Rent - Nairobi by Zone

Zone A Zone B Zone C Zone A Zone B Zone C 400 200 350 300 150 250 SH.s 1000s 200 100

x 2000 =100 150 100 50 Inde 50 ASking Price K 0 0 2002 Q4 2003 Q2 2003 Q4 2004 Q2 2004 Q4 2005 Q2 2005 Q4 2006 Q2 2006 Q4 2007 Q2 2007 Q4 2008 Q2 2008 Q4 2009 Q2 2009 Q4 2010 Q2 2010 Q4 2011 Q2 2011 Q4 2012 Q2 2012 Q4 2013 Q2 2013 Q4 2002 Q4 2003 Q2 2003 Q4 2004 Q2 2004 Q4 2005 Q2 2005 Q4 2006 Q2 2006 Q4 2007 Q2 2007 Q4 2008 Q2 2008 Q4 2009 Q2 2009 Q4 2010 Q2 2010 Q4 2011 Q2 2011 Q4 2012 Q2 2012 Q4 2013 Q2 2013 Q4

Letting Price Index - Zone A Letting Price Index - Zone B Letting Price Index - Zone C

210 118 40

38 200 114 KSH.s KSH.s KSH.s 36 1000s 1000s 1000s 190 110 34

180 106 32 2012 Q4 2013 Q2 2013 Q4 2012 Q4 2013 Q2 2013 Q4 2012 Q4 2013 Q2 2013 Q4

THE PROPERTY MARKET IN 2013 ANNUAL REPORT

Zone A Zone B Zone C Gigiri Brookside Athi River Hill View Estate Hurlingham Buru Buru Karen Kileleshwa Donholm Kitisuru Kilimani Embakasi Kyuna Estate Langata Fedha Estate Lower Kabete Lavington Industrial Area Loresho Mountain View Jamhuri Muthaiga Nyali Kiambu Nyari Parklands Kitengela Rosslyn Riverside Koma Rock Runda State House Imara Daima Spring Valley Upperhill Madaraka Wispers Valley Arcade Mlolongo Westlands Nairobi West Ngong Nyayo Estate Ongata Rangai South B South C Tena Thika

Suburbs include adjacent surrounding areas