Land and housing
developments are the most valuable investments to venture into in
Nairobi and its suburbs, says HassConsult in a new report released
Wednesday.
Hassconsult's
research and marketing manager Ms Sakina Hassanali said that investors
in the two sectors continued to earn handsome returns as other sectors
have been hit hard by the harsh economic climate.
"Compared to
returns in other commodities such as gold, cattle and crude oil which
have suffered severe drops in the market, house and land prices enjoyed a
steady rise twelve times more than gold and ten times more than cattle
in the past seven years under review," she said.
HIGH LAND PRICES
Nairobi had the
highest land prices with an acre of land going for Sh507 million in
Upper Hill, a growth of 8.5 times in the last seven years.
"Land in Juja, Athi
River, Kiserian, Kitengela, Mlolongo, Syokimau and Tigoni yielded more
than 6.27 per cent return in the last seven years. Investors keen on
safe assets and guaranteed returns go for land and housing
developments," said Ms Hassanali.
Kiserian land sales
increased 22.8 per cent with marked investments from universities and
private developers while Karen's were up 20.8 per cent. Tigoni recorded a
paltry 0.3 per cent while the crime-prone Donholm posted negative -1.4
per cent.
MIDDLE CLASS HIT HARD
Low and middle
income earners were hardest hit as land prices in the suburbs rose 6.3
per cent noted Ms Hassanali as she added: "Attractive returns in
satellite towns have driven up land prices as Saccos, investment groups,
individuals and companies buy land and subdivide it among their
members."
The Hass Property
Index which tracks commercial and residential properties within Nairobi
and its 18 satellite towns, said that rental prices enjoyed a 3.9 per
cent in the last quarter under review with Athi River posting a
tremendous 6.3 per cent rise buoyed by increased industrial investments
that have pushed up demand for rental houses.
She noted that
Mololongo posted the highest increase in rental prices of 20.9 per cent,
Ngong (4.5), Gigiri(2per cent) while Spring Valley showed a negative
growth of -0.6 per cent.
