Sh1m invested in land around Nairobi 10-yrs ago is now worth Sh8.5m – Hass index

NAIROBI CONSTRUCTION - Sh1m invested in land around Nairobi 10-yrs ago is now worth Sh8.5m – Hass index
Nairobi satellite towns have experienced exponential growth driven by housing demand/File

NAIROBI, Kenya, Jan 24 –  If you bought land around Nairobi for Sh1m in 2007, the value has now grown eight times. 

This is according to the HassConsult Land Price Index Quarter Four 2018 report that lists 14 satellite towns that have multiplied in land value over the last decade.

The Nairobi Satellite towns include Athi River, Juja, Mlolongo, Limuru, Kitengela, Ngong, Ongata Rongai, Ruaka, Ruiru, Syokimau, Thika, Tigoni, Kiserian and Kiambu.

According to the report, if you invested the same Sh1 million in land in Nairobi Suburbs you would be worth Sh6.3 million, with the suburbs being Kilimani, Kitusuru, Upperhill, Westlands, Runda, Spring Valley, Nyari, Muthaiga, Kileleshwa, Karen, Gigiri, Eastleigh, Donholm, Loresho, Ridgeways, Parklands and Langata.

The same amount invested in property such us rentals, value has gone up to Sh2.47 million, while bonds and savings would have given you a return of Sh2.54 million and Sh1.31 million respectively but lost Sh480,000 if you invested in equities.

HassConsult Head of Development Sakina Hassanali says land in Nairobi has appreciated by 700 percent in the last ten years outperforming global asset classes that include both Gold and Oil.

“Globally commodities are falling while and prices in Kenya continue to rise on average of  70 percent per year, compared to 50 to 20 percent in 10 year for other commodities. Going forward, Land will continue to outperform commodities as the government continue to invest in infrastructure throughout the country,” she said.

Gold prices went up by 155 percent in the last decade, live cattle by 127 percent while crude oil was the worst performing in the period increasing by 56.6 percent in value.

“Overall the market for land is becoming more sophisticated. Where change is underway, the returns remain outstanding for any asset class, but in areas that are now more fully developed, often a high density, prices are now more static,” said Hasannali.

Author: worldwidenewscast

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