Land buying frenzy near mega infrastructure pushes up prices
Road construction. Property prices have also gone up on Nairobi’s Thika Road, Southern bypass, Namanga Road and Eastern bypass. Photo/FILE
Property prices near mega projects have skyrocketed with land in Lamu almost tripling amid speculation of a further rise after completion of the Lapsset corridor.
Prof Johnstone Kiamba, a director at the Land Development and Governance Institute (LDGA), an advocacy group, said areas where the government is putting up large projects like the port and oil infrastructure in Lamu and Isiolo are experiencing a property boom.
“We have seen it happening... just like in Malili,” said Prof Kiamba.
Land prices in Malili, Machakos County went up after the government bought 5,000 acres from Malili Ranch in 2009 for the construction of the multi-billion shilling Konza City.
Prof Kiamba said development projects in counties and the emotional attachment to land are some of the factors continuing to support high property prices.
Land prices in Lamu have almost tripled as the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor attracts buyers.
“Prices are really going up. An acre that cost Sh1.5 million is now going for Sh4 million,” Patrick Itumo, a manager at property firm Badana Investments Ltd said.
He added that saccos, foreign companies and individual investors are showing huge appetite for land in Barangoni area in Lamu County.
Lapsset project is expected to pave the way for other investments and the Government has already assembled a team of lawyers and bankers tasked with sourcing of about $3.2 billion (Sh290 billion) to fund the Lapsset projects.
Foreign companies have expressed interest in building berths at the port of Lamu, an international airport, the Lamu-Isiolo highway, a desalination plant and 850 megawatt gas-fired power plant.
Mr Itumo said speculators are cashing in on the high demand at the expense of local land owners and the government which may be forced to pay a premium for additional land now owned by private investors.
Property prices have also gone up on Nairobi’s Thika Road, Southern bypass, Namanga Road and Eastern bypass.
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