Land prices across Nairobi and its satellite towns experienced notable growth between April and June 2026, signaling a recovery in the real estate sector after a slow start to the year.
Rising Land Values
The latest HassConsult Land Price Index reveals that Nairobi's suburban land prices climbed by 1.4% in the second quarter, up from 0.8% in the first quarter. Areas such as Lang'ata, Karen, and Runda saw heightened activity as both developers and individual buyers acquired land for residential projects.
Satellite towns around Nairobi also recorded significant gains, with land prices increasing by 1.4%, nearly triple the growth rate seen earlier in the year. Ruiru led with a 4.1% rise, followed by Thika at 3.8% and Ruaka at 2.8%. This upswing is partly attributed to Nairobi County's new Development Control Policy, which has clarified planning regulations and encouraged fresh investments.
Housing Market Remains Uneven
While land values are on the rise, the housing market presents a mixed picture. Property prices in Nairobi's suburbs edged up by 0.9% to an average of Ksh 33.1 million, with Ridgeways, Karen, and Lavington showing the strongest increases.
Conversely, housing prices in satellite towns declined by 0.6% to an average of Ksh 14.5 million, with most towns experiencing price drops. This indicates that buyers in these areas are still cautious amid challenging economic conditions.
Rental Market Shows Strength
The rental sector remains robust, with rents increasing by 1.4% in Nairobi suburbs and 1.1% in satellite towns. Factors such as Kenya's growing population, rapid urbanisation, and low mortgage uptake continue to sustain demand for rental housing.
