Land prices in Kenya’s leading coastal towns have risen sharply since the Covid-19 pandemic, driven by remote work, retirement relocation, diaspora demand and growing interest in permanent or semi-permanent coastal living, according to HassConsult’s new Coastal Land Price Index.
The index, which tracks land prices across 12 coastal towns from Lamu to Diani, shows that some of the country’s most attractive coastal destinations have recorded land price growth of between 56 and 79 per cent over the five years to the fourth quarter of 2025.
Diani posted the strongest five-year growth, with land prices rising 79.1 per cent between Q4 2020 and Q4 2025, while Watamu followed with a 70.4 per cent increase. Lamu Island recorded a 59.7 per cent rise, while Bamburi was up 56.6 per cent over the same period.
HassConsult said the figures point to the emergence of the coast as a distinct lifestyle and investment asset class, increasingly detached from broader national economic trends.
“Coastal land has delinked from general economic trends in Kenya on new dynamics during the 2020s,” said Sakina Hassanali, Co-CEO and Creative Director at HassConsult. “Across remote working, retirement relocation, and the long tail of international and domestic buyers who first discovered the Coast as tourists, it has developed its own, distinct land dynamics.”
The report identifies what HassConsult calls a “beauty premium,” where proximity to the ocean, beach quality, natural scenery and lifestyle appeal are increasingly shaping land values. Areas with wide beaches and strong lifestyle appeal, such as Diani and Watamu, have seen some of the fastest growth.
Nyali remains the most expensive coastal market in the index, with an average land value of Sh114 million per acre, rising to Sh146.4 million per acre for beachfront land. Mombasa City follows at Sh91.3 million per acre on average, with beachfront values at Sh120.3 million per acre.
However, HassConsult noted that price growth in Nyali has slowed since 2020 as investor interest shifts toward areas of outstanding natural beauty that still offer lower entry prices. Diani, for instance, averages Sh36 million per acre, while beachfront land averages Sh65.3 million per acre. Watamu averages Sh35 million per acre, rising to Sh44.5 million on the beachfront.
The index also shows uneven performance across the coast. Kilifi Town recorded the highest annual increase at 8.8 per cent, followed by Vipingo at 8.7 per cent and Kikambala at 7.7 per cent. Mombasa City registered one of the weakest annual performances, rising just 1.3 per cent, while Malindi grew 2.1 per cent.
On a quarterly basis, Diani led with a 2.3 per cent increase, while Lamu Island rose 1.8 per cent and Malindi 1.5 per cent. Watamu, Mtwapa, Bamburi and Mombasa City recorded quarterly declines.
HassConsult said some coastal areas continue to face constraints from land title delays, poor infrastructure and water shortages, which are holding back prices in parts of Kilifi and Kwale.
“Professionals moving to the Coast to work remotely, or relocating from all over the world to enjoy leisured retirements, simply will not buy when land titles are uncertain or water precarious,” Ms Hassanali said.
The Hass Coast 8 Land Index recorded a 40.7 per cent increase over five years, despite dipping 0.52 per cent in Q4 2025 and rising 2.36 per cent over the year.