BY UPESI NEWS BUSINESS REPORTER,NAIROBI,30TH JAN,2017-Property prices and rentals in satellite towns have recorded the lowest annual growth rate in 8 years with Nairobi recording slowed growth in land prices.The same has led to the interest rate cap law not showing any effectiveness for developers yet.This is according to a report released by the Hass consult real estate company.
The house price index quarter four reports has unveiled a strong demand drive for exclusive suburbs that have high density developments with Muthaiga being the best performing suburb with average house prices in the area increasing by 15.8% in 2016 followed by Kitisuru at 14,2% and Langata at 13.5%.
The land price index quarter four report on the other hand has revealed a 0.8% increase in land prices in the fourth quarter and 5.1% rise for the year, the lowest growth rates in 8 years while satellite towns have performed better with land prices rising by an average of 2.3% in the fourth quarter of 2016 but a 21.8 annual increase. Juja has recorded the highest quarterly annual asking price increase (6.32%) with Mlolongo being the worst performing satellite town(1.47% drop). This according to the Hass consult head of research and marketing Sakina Hassanali is related to the rate of infrastructure development in the respective areas.