Markets & Finance

Luxury homes prices up 1.5pc in slow demand

The prices of Nairobi luxury homes rose 1.5 per cent in the first quarter as sellers lowered expectations, representing the strongest growth since the 2.2 per cent third quarter rise in 2013 according to the Knight Frank Prime Global Cities Index.

The realtor attributed the slow price growth to increased supply which it noted showed “days of double-digit increases are behind”.

The index tracking local currency prices changes indicated annual and six-month growth in March was 3.3 per and 2.2 per cent respectively.

Nairobi was ranked number 15 in the 35-city survey, two positions up from the last three months of 2015 on an annual basis.

The index tracks stand-alone homes of Sh80 million ($0.8 million) sitting on at least half an acre of land in posh areas. Such properties are increasingly located in gated compounds.

The report noted the prime residential market was growing gradually but local high net worth individuals are becoming more demanding.

“Data on deals in the prime residential segment remains scarce, but there are still some strategic, individual transactions happening albeit in low volumes,” said Anthony Havelock, head of agency at Knight Frank Kenya.