Nairobi, Kenya, May 9 – Rental apartments in Rwaka remain the most attractive for many Kenyans due to their proximity to the city and access to affluent suburbs while Ngong and Kitengila have emerged as profitable new towns for Nairobi residents.
A report by Hass Consult reveals that in the first quarter of 2021, demand for apartment rents in Ngong and Kitengila rose by 5.5 per cent and 5.2 per cent while Ruaka rose by 2.9 per cent.
Ruaka cemented its position as the largest supplier of apartments in sub-towns which account for 30 percent of all units advertised. The satellite cities recorded the strongest growth in apartment rents with Ngong and Kitengela at 5.5 percent and 5.2 percent, respectively,” the report revealed.
Sakina Hasnali, Head of Development Consulting and Research at Haas Consult, attributed Rwaka’s strong position to its easy access to affluent suburbs that offer high land value that can be accommodated in high-density residential developments.
“Rawaka has thus become the largest apartment owner within the satellite because it offers the ability of working residents to enjoy the cost of housing and lower transportation costs,” Hasnali said.
Overall, real estate sales prices posted a 2.89% increase over the same period and 6.8% year-over-year growth from March 2021.
However, apartment sales prices remained flat with a decline of 0.6 percent in the quarter and a decline of 3.4 percent in the year to March 2022.
“However, real estate rental prices showed a slight improvement mainly driven by the rebound in previously low apartment rents. Requesting apartments registered a 2.2 percent increase during the quarter, raising total demanded rents by 1 percent. The report revealed that Detached and semi-detached home rents were flat at 0.7 percent and 0.2 percent, respectively.
The demand for detached homes also increased after recording a growth of 4.3 percent and an annual growth of 11.8 percent.
Due to easier access via Redhill Link Road, Spring Valley, Nyari and Kitisuru saw the highest growth at 4.2 percent, 3.9 percent and 2.7 percent, respectively.
Hasnali added that given the 2021 Landlord and Tenant Bill, which if enacted would give the government the power to set rent increases in commercial and residential buildings, this could affect the
“It is still too early to say for sure the impact of the proposed rent control laws, but investors are keeping tabs. There have been similar laws like the Banks Act 2016 that were meant to control interest rates to support consumers
The unintended consequences of reducing the availability of credit to the market.”