Paul Arithi 
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Nairobi land prices growth halves to three- year low in third quarter;
Land prices in Nairobi’s suburbs grew by 0.7 percent to an average of KES. 233.5 Million per acre in the third quarter of
2026, down from 1.4 percent in the previous quarter,marking the slowest quarterly growth in three years.
• Despite the slowdown, 13 of the 18 Nairobi suburbs recorded positive price appreciation, with Karen (3.0 percent),
Westlands (2.7 percent) and Kitisuru (2.7 percent) leading quarterly growth.
·
Several of the previous quarter’s strongest performers recorded slower growth, led by Langata, where appreciation fell
from 4.1 percent to 0.2 percent, while Muthangari (-3.1 percent) and Gigiri (-2.2 percent) recorded the largest price
declines.
Land prices in Nairobi’s satellite towns grew by 0.65 percent to an average KES. 33.7 Million per acre, compared with 1.4 percent in the previous quarter, as Ruiru, Thika and Ruaka recorded slower appreciation.
Over the past two years, land-price appreciation in 12 of the 14 satellite towns was lower than the modelled returns
from rolling 91-day Treasury bills, highlighting changing relative investment returns.
Land Index Highlights:
Quarter % Change Annual % Change Nairobi-18 Composite Index Results
The Hass Composite Land Index, Nairobi Suburbs 4.28% 1.29 Fold
Quarter % Change Annual % Change Nairobi Satellite-14 Composite Index Results
The Hass Composite Land Index,Nairobi Satellite Towns 0.65% 4.30% 1.80 Fold
Suburb with Highest Quarterly Increase in Land Price
The Town with Lowest Quarterly Increase in Land Price
The Town with Lowest Annual Increase in Land Price
Suburb with Highest Annual Increase in Land Price
Suburb with Lowest Quarterly Increase in Land Price
Suburb with Lowest Annual Increase in Land Price
The Town with Highest Quarterly Increase in Land Price
The Town with Highest Annual Increase in Land Price
Land in Karen (+2.99 % over last quarter)
Land in Karen (+10.94 % over last year)
Land in Muthangari (-3.13 % over last quarter)
Land in Muthangari (-8.57 % over last year)
Land in Ngong (+2.19 % over last quarter)
Land in Ruiru (+11.49 % over last year)
Land in Mlolongo (-2.20 % over last quarter)
Land in Athi River (-2.28 % over last year)
Land Price Index Qauarter Three Report 2026
The slowdown was mirrored in Nairobi’s satellite towns, where price appreciation also fell by more than half compared
with the previous quarter.
The moderation follows a period of stronger price appreciation in the second quarter,although the latest results show considerable variation in performance between individual locations.
In Nairobi’s suburbs, 13 of the 18 locations continued to record positive price movements. Karen at KES. 81.8 Million
maintained its position among the strongest-performing suburbs, while Westlands (KES. 521.7 Million), Kitisuru (KES. 105.2 Million),Muthaiga (KES. 234.8 Million) and Loresho (KES. 120.2 Million) recorded faster appreciation than in the previous quarter.
Conversely, several suburbs that had led growth in the second quarter experienced a sharp moderation, including
Langata (KES. 94.9 Million), Runda (KES. 106.5 Million) and Nyari (KES. 128.6 Million).
Five suburbs recorded actual price declines during the quarter. Land prices in Nairobi’s suburbs averaged KES. 233.5 Million per acre.
Five suburbs recorded actual price declines during the quarter.Land prices in Nairobi’s suburbs averaged KES. 233.5 Million per acre.
“The sharp moderation in the third quarter suggests that the previous quarter’s rebound was a temporary acceleration rather than a sustained shift in land-price momentum.
Nairobi’s land market appears to be returning to a period of more measured appreciation, following the stronger gains recorded earlier in the year,” said Sakina Hassanali, HassConsult Co-CEO & Creative Director.
The longer-term performance of individual suburbs also remains varied.Over the past eight quarters,Karen recorded
cumulative land-price appreciation of approximately 19.6 percent, the highest among the 18 suburbs tracked by the
Index.
In Nairobi’s satellite towns, the overall slowdown was accompanied by a reduction in the number of locationsexperiencing falling prices.
Nine of the 14 satellite towns recorded positive price movements, compared with seven in the previous quarter.
While Ruiru (KES. 42.5 million), Thika (KES. 33 Million) and Ruaka (KES. 117.9 Million) recorded slower appreciation
following strong growth in the previous quarter,Ngong (KES. 33.5 Million) and Limuru (KES. 27.5 Million) returned to
positive price growth after recording declines in the second quarter.
Over the past two years, land-price appreciation in 12 of the 14 satellite towns was lower than the modelled
cumulative return from rolling 91-day Treasury bills,with only Ruiru and Juja outperforming the benchmark.
“Satellite towns have historically attracted buyers investing in land for future capital appreciation. However, as returns from passive landholding become less competitive with alternative investments, the economic justification for purchasing land may increasingly depend on its intended use.This could signal a gradual shift towards more use-driven investment in some of Nairobi’s satellite towns, particularly as these markets mature,” added Ms Hassanali.
The third-quarter results reflect a period of slower overall land-price appreciation across Nairobi and its satellite towns,
with longer-term investment comparisons pointing to potentially changing dynamics in the satellite land market.
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