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Land Prices Ease in Ongata Rongai, Kitengela, and Karen as Economic Pressures Stall Growth in Q3

Land prices in Nairobi’s satellite towns and suburbs recorded subdued growth in the third quarter of 2025, with areas such as Ongata Rongai, Kitengela, Kiserian, Athi River, Langata, and Karen showing signs of stagnation or decline amid tightening household budgets and reduced self-building activity.

According to the latest HassConsult Land Price Index released on October 28, the average price of land per acre in Ongata Rongai stood at KSh28 million, while Kitengela registered KSh13.4 million and Kiserian dropped to KSh8.7 million, this is  the lowest among the 14 satellite towns surveyed. Athi River followed closely at KSh15 million, reflecting a broader slowdown in areas traditionally favored by middle-class buyers building homes in stages.

In Nairobi’s suburbs, Karen recorded the lowest average price at KSh60 million per acre, while Langata followed at KSh73.8 million, both trailing far behind high-demand zones like Upperhill (KSh554 million) and Westlands (KSh504 million). The subdued performance in Karen and Langata is attributed to planning constraints and limited access to public transport, which have discouraged high-density development.

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The report shows that overall land price growth in satellite towns rose by a marginal 0.84% in Q3, bringing annual growth to 6.6%, the slowest pace in five years. In contrast, Nairobi’s suburbs posted a quarterly increase of 1.22%, with annual growth at 6.27%, motivated by developer-led projects and zoning changes that favor mixed-use developments.

“Many of these satellite areas, such as Kiserian, Kitengela, and Athi River, have historically attracted middle-class buyers. But constrained incomes are reducing the flow of self-builders able to enter the market,” said Sakina Hassanali, Co-CEO and Creative Director at HassConsult.

Among satellite towns, Ruaka emerged as the most expensive, with land averaging KSh111.1 million per acre, surpassing even some Nairobi suburbs like Ridgeways (KSh90 million) and Runda (KSh96 million). Other towns such as Kiambu (KSh48.7 million), Mlolongo (KSh46.9 million), and Syokimau (KSh39.9 million) maintained relatively higher values due to proximity to infrastructure and developer interest.

By Masaki Enock

 

 

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