Kenya’s real estate market experienced a notable shift in the first quarter of 2025, with many estates in Nairobi and its surrounding towns recording a sharp drop in rental prices.
According to a new report by HassConsult, a well-known real estate firm in Kenya, rental prices between January and March 2025 dropped in several Nairobi estates.
On Tuesday, April 29, HassConsult released the Hass Property Price Indices, which highlighted specific areas within Nairobi where rent either fell or rose during the three-month period.
From the report, high-end estates such as Muthaiga, Nyari Estate, Kilimani, and Westlands experienced the largest declines in rental prices.
Muthaiga had the biggest drop at 4.9%, followed closely by Nyari with a 4.7% decrease. Kilimani saw a 4.6% decline, while Westlands recorded a 3.1% fall in rent.
Other Nairobi suburbs and nearby towns also saw rental prices drop, though not as sharply. These areas include Loresho, Ridgeways, and Runda, where rents declined by 1.3%, 1.5%, and 1.3% respectively.
Additionally, satellite towns such as Kiserian, Athi River, and Tigoni experienced modest decreases in rent—1.2% in Kiserian, 2.2% in Athi River, and 2.5% in Tigoni.
In contrast, some estates saw rental prices go up. Ruiru, Ngong, and Limuru recorded the highest increases, with Ruiru’s rent jumping by 5.3%, Ngong by 5.1%, and Limuru by 4.9%.
These areas are part of Nairobi’s rapidly developing satellite towns and have become more attractive to renters due to improvements in infrastructure and services.
Other estates like Juja, Ongata Rongai, and Kitengela also recorded growth in rent. Juja experienced a 1.4% increase, Ongata Rongai saw a 3% rise, and Kitengela rents grew by 3.3%.
Upscale areas such as Karen and Kileleshwa also joined the list, albeit with more modest increases—0.9% and 0.5%, respectively.
Furthermore, Kitisuru and Lang’ata registered a 1% growth in rental prices, while Lavington saw a 1.1% increase.
Speaking during the release of the report, Sakina Hassanali, Creative Director at HassConsult, explained the reasons behind the rising rental prices in some estates.
She pointed out that improving economic conditions, especially low and stable inflation, gave landlords the confidence to raise asking prices.
She further noted that enhanced infrastructure and better amenities in satellite towns have made them more appealing to tenants, offering convenience that was previously only available in Nairobi’s well-developed suburbs.
“The improvement of roads, access to utilities, and the expansion of services like shopping centres and schools in satellite towns have greatly increased their value,” said Hassanali.
She concluded by saying the overall growth in property asking prices across Nairobi’s satellite towns helped push the average rental price growth by 2.4% during the quarter.
Join Our Political Forum official 2025 WhatsApp Channel To Stay Updated On time https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
