Buying a house in Muthaiga, Kileleshwa, and Nyali among other upmarket areas is three times more expensive than in the lower market regions and twice the cost of one in the mid-market segment, a new report shows.
The Kenya Bankers Association-House Price Index (KBA-HPI) report reveals the average price of a house in the high-market segment which comprises Spring Valley, Riverside, Milimani (Kisumu), Milimani (Nakuru), Runda, Karen is Sh20.95 million as at the end of the last quarter of 2021.
“The average cost of a house in the high-market segment stood at Sh20.95 million, while houses in mid-market and the low-market segment stood at Sh9.85 million, and Sh8.17 million, respectively,” the report read in part.
The housing index says mid-market areas includes Thindigua (Kiambu Road), Kiambu, South B, South C, Kabete, Komarock, Imara Daima, Buruburu, Rongai, and Langata.
Athi River, Mlolongo, Nakuru, Ngong, Ruaka, Syokimau, Embakasi, Kahawa Wendani, Bungoma, Thika, Likoni, Eldoret, Ruiru, Kilifi and Thika Road (Kasarani, Roysambu, Ruaraka) are classified in the low-end segment.
Other areas in the high-end market category are Garden Estate, Parklands, Ridgeways, Loresho, Kitisuru, Adams Arcade, Mountain View, and Nyari.
Location and type of house remain primary determining factors of housing prices in the country with the prime properties in close proximity to the business district and social amenities.
“Significant heterogeneities by region (hence segment) and house type reflect a segmented market for the houses traded during the period,” the report read in part.
The report reveals houses in the upper market regions were bigger in size compared to those in the other areas.
Houses in the higher market regions were 59.1 percent bigger in the plinth area than those in the low region.
“Across regions, the average plinth area of up-market houses transacted during the period was the highest, at 2,225.5 square feet, compared to 1,777.2 square feet and 1,398.5 square feet in the mid-market and low-market segments, respectively,” the report said.
House types reviewed were apartments, bungalows, and maisonettes.
Townhouses were bigger in size with an average area of 5,709 square feet, maisonette’s plinth area at 2,631.2 square feet, while bungalows and apartments had an area of 1,631.4 square feet and 1,283.9 square feet, respectively.
“While not dominant, townhouses were the highest-priced, driven by their structural benefits of providing larger plinth area; a key house demand feature particularly pursued by the mid to up-market segments buyers,” the report said.