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Land prices in Nairobi’s outskirts have increased by 17 percent over the past year with Ruaka emerging the most expensive address in the city with an average asking price of Sh18million for an eighth of an acre.
A report by Property Reality Company (PRC), reveals that land prices in Ruaka shot up by 125 per cent for an eighth of an acre up from 8million previously with growth being attributed to the continued road expansion and growing middle class.
“This is majorly driven by an increasing middle class who have a very high disposable income and the rural urban migration across major town centers which places a lot of strain on the limited land available,” said PRC General manager Abraham Muriithi.
The survey conducted between September 2015 and September this year further shows that land prices continue to skyrockets with areas like Syokimau and Muguga Sh2.5million and Sh1.9million for an eighth of an acre from Sh2.2million and Sh1.9million respectively in September last year.
Land prices in Kiserian and Utawala also witnessed a jump by 42 per cent and 32 per cent respectively with asking price of Sh1.4million and Sh850, 000.
The recently enacted bill on interest rates is further expected to boost the uptake of property as real estate which is considered safe investment and the title deed can be used as a security for loans advanced.
“We foresee a situation where more and more financial services providers will extend loan facilities using title deeds as security. This will be one of the strategies they use to survive the cut-throat competition,” said Mureithi.
The report tracks changes in land prices across several locations on the outskirts of Nairobi and was conducted through a combination of Mystery visits to real estate firms, brokers, individual sellers and a review of property prices from several online resources.