- Land price growth in Nairobi suburbs has slowed to its weakest pace in three years.
- Several previously strong-performing locations recorded slower appreciation or outright price declines.
- Treasury bills are emerging as stronger competitors to land investment in several satellite towns.
Land price growth in Nairobi’s suburbs slowed to a three year low in the third quarter of 2026, according to the latest HassConsult Land Price Index.
This points to a further moderation in the capital’s property market.
The slowdown was also recorded in Nairobi’s satellite towns. There, quarterly land price appreciation fell by more than half compared with the second quarter of the year.
The latest figures point to a cooling market following a stronger rebound in land prices in the second quarter. However, performance varied significantly across individual locations.
In Nairobi’s suburbs, 13 of the 18 locations tracked by the index recorded positive price movements during the quarter.
Karen, where land prices averaged Ksh81.8 million per acre, remained among the strongest performing suburbs. Westlands, at Ksh521.7 million per acre, Kitisuru (Ksh105.2 million), Muthaiga (Ksh234.8 million) and Loresho (Ksh120.2 million) also recorded faster price appreciation than in the previous quarter.
However, several suburbs that had posted strong growth in the second quarter experienced a significant slowdown. These included Langata, where land prices averaged Ksh94.9 million per acre, Runda (Ksh106.5 million) and Nyari (Ksh128.6 million).
Five suburbs recorded actual price declines during the quarter. The average land price across Nairobi’s suburbs stood at Ksh233.5 million per acre.
HassConsult Co-Chief Executive Officer and Creative Director Sakina Hassanali said the sharp moderation indicated that the strong performance recorded in the second quarter was likely a temporary acceleration. In her view, it was not the beginning of sustained growth.
“Nairobi’s land market appears to be returning to a period of more measured appreciation, following the stronger gains recorded earlier in the year,” she said.
Despite the slowdown, long-term performance data shows that some locations have continued to deliver relatively strong returns.
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Over the past eight quarters, Karen recorded cumulative land price appreciation of approximately 19.6 per cent. This was the highest among the 18 Nairobi suburbs monitored by the index.
In the satellite towns, nine of the 14 locations recorded positive price movements, an improvement from seven in the previous quarter. This came despite the overall slowdown in appreciation.
Ruiru, where land prices averaged Ksh42.5 million per acre, Thika (Ksh33 million) and Ruaka (Ksh117.9 million) recorded slower appreciation following stronger growth in the second quarter.
Ngong and Limuru, with average land prices of Ksh33.5 million and Ksh27.5 million per acre respectively, returned to positive price growth after recording declines in the previous quarter.
Overall, land prices in Nairobi’s satellite towns averaged Ksh33.7 million per acre during the third quarter.
The report also highlights growing competition between land investments and alternative financial assets, particularly Treasury bills.
Over the past two years, land price appreciation in 12 of the 14 satellite towns was lower than the modelled cumulative returns from rolling 91 day Treasury bills. Only Ruiru and Juja outperformed the benchmark.
Hassanali noted that satellite towns had traditionally attracted investors seeking capital gains from purchasing and holding land for future appreciation.
However, with land price growth becoming less competitive against alternative investments, she said the financial case for acquiring land was increasingly likely to depend on its intended use.
The trend could signal a gradual shift towards use driven property investments. In that scenario, buyers would prioritise developing land for residential, commercial or other purposes rather than relying solely on future price increases.
By Obegi Malack
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