Market News

Embakasi land up 115pc on bypass, Outer Ring roads


Property business is also expected to benefit from the repeal of the interest rate cap. FILE PHOTO | NMG

Land prices in Embakasi shot up by 115.1 percent from 2011 to 2018, driven by the construction of the Eastern Bypass and Outer Ring Road, a new report shows.

Latest Cytonn Investment Nairobi Metropolitan Area Serviced Apartments report shows one acre in Embakasi rose to Sh71 million in 2018 from Sh33 million in 2011.

The rise came at a time the government is planning to issue more than 20,000 title deeds to Embakasi Ranching Company shareholders.

The area will also benefit from the planned dualling of the Eastern Bypass.

Meanwhile, in Kasarani, an acre jumped by 100 percent to Sh64 million from Sh32 million in the same period, attributed to the Nairobi- Thika Highway upgrade. “Land prices have grown by an average seven-year Compound Annual Growth Rate of 11.1 percent stemming from infrastructural developments,” the report shows.

Moreover, the report says, investments in transport infrastructure will spur more developments and boost property prices in the areas.

Property business is also expected to benefit from the repeal of the interest rate cap.

Analysts argued the repealing of the cap would benefit mortgage borrowers and land buyers as banks are set to increase lending. HassConsult 2019 Land Index Quarter three report reveals modest growth for both suburb and satellite towns over the quarter. Land prices in the suburbs increased by 0.22 percent over the quarter while in the satellite towns growth stood at 1.44 percent, the report shows.

Syokimau recorded the highest annual increase in land prices while Tigoni recorded a 2.89 percent growth over the quarter.