Property prices in Kenya rose modestly in the third quarter of 2025, reflecting a seasonal slowdown in sales during August, but still extended their upward trend for the year, according to the latest HassConsult Property Price Index.
Overall property prices increased by 1.1 per cent between June and September 2025, bringing the annual rise to 8.2 per cent. The growth was primarily supported by demand for detached homes, whose prices surged 11.3 per cent in the year to September.
“All segments of the market delivered sales price growth in the third quarter, reflecting the market’s solid foundation in cash-driven demand, but it was a subdued quarter overall, as middle-class incomes remained under pressure,” said Sakina Hassanali, Co-Chief Executive Officer and Creative Director at HassConsult.
The firm reported that the appetite for detached houses was concentrated in select neighbourhoods. Prices continued to climb in Runda, Ridgeways, Loresho, Lavington, Karen, and Muthaiga, as well as in satellite towns such as Athi River, Ruiru, Tigoni, Juja, and Kiserian. In contrast, prices in other city suburbs and surrounding areas either stagnated or declined.
The data also pointed to a cooling in the housing demand that had accelerated since late 2023. Growth in buying activity was strongest in Athi River, Ruiru, and Tigoni, suggesting that homebuyers are shifting towards more affordable locations as premium markets mature.
Meanwhile, the rental market recorded declines, with rents falling by 1.6 per cent quarter-on-quarter and 1.3 per centover the year. The drop was most evident in detached homes, as the departure of expatriates—linked to the end of large aid inflows—reduced demand for high-end rentals.
However, unlike in previous periods of expatriate exits, such as in 2012 and during the Covid-19 pandemic, this decline in rental demand has not translated into falling sales prices. The strong appetite for home ownership among local buyers has continued to support detached house values.
In the apartment segment, prices remained relatively stable, with mixed trends across neighbourhoods. Parklands and Riverside recorded the fastest rental growth, with Parklands rents up by 12.5 per cent year-on-year due to newer, higher-priced units entering the market. Conversely, Upper Hill saw dips in both rental and sale prices, driven by older stock that is less competitive against modern developments.
The third-quarter results underline a maturing property market, where local demand, affordability pressures, and shifting rental dynamics continue to shape growth patterns across Nairobi and its satellite towns.
