Property asking prices in Nairobi’s established suburbs recorded their strongest quarterly growth in four years, driven by rising demand, limited housing supply and improving borrowing conditions, according to the latest HassConsult Property Price Index.
The report shows that average suburban property asking prices increased by 2.3 per cent to Sh33.88 million in the third quarter of 2026, compared with 0.9 per cent in the previous quarter. This marked the highest quarterly appreciation since September 2022.
Spring Valley recorded the highest quarterly price growth at 6.8 per cent, with average house asking prices reaching Sh79.4 million. Westlands followed with a 5.9 per cent increase to Sh64.5 million, while Muthaiga recorded 5.5 per cent growth to Sh118.1 million.
Karen and Loresho also registered strong performances, with prices rising by 5.2 per cent each to Sh119.3 million and Sh86 million, respectively.
The growth comes amid improving credit conditions, with average commercial bank lending rates declining from 17.2 per cent in November 2024 to 14.4 per cent in September 2026. Annual private-sector credit growth also reached 10.6 per cent in September.
“Lower borrowing costs and stronger private-sector credit growth are creating a more supportive environment for property investment. In Nairobi’s established suburbs, where the supply of houses remains relatively constrained, improving financial conditions may be adding to upward price pressure, contributing to the stronger appreciation recorded during the quarter,” said Sakina Hassanali, HassConsult Co-CEO and Creative Director.
Nairobi’s rental market also recorded strong growth, with suburban rental asking prices increasing by 2.7 per cent, up from 1.4 per cent in the previous quarter, approaching their highest quarterly growth in three years.
Loresho led rental appreciation at 6.2 per cent, with average monthly house rents reaching Sh338,100. Kitisuru followed at 5.1 per cent to Sh350,100, Muthaiga at 4.5 per cent to Sh370,900 and Gigiri at 3.9 per cent to Sh402,100.
HassConsult attributed part of the rental demand in established northern suburbs to the expansion of United Nations operations and the gradual relocation of personnel to Nairobi.
In contrast, property asking prices in Nairobi’s satellite towns declined by 0.6 per cent to an average of Sh14.43 million, marking the second consecutive quarterly drop. Rental price growth in these areas also slowed to 0.4 per cent from 1.1 per cent in the previous quarter.
Ngong recorded the largest quarterly decline in house asking prices at 1.2 per cent to Sh19.1 million, followed by Ongata Rongai, where prices fell by 1 per cent to Sh15.4 million. Juja and Kitengela registered declines of 0.6 per cent and 0.5 per cent to Sh12.8 million and Sh13.2 million, respectively.
The report highlights a widening performance gap between Nairobi’s established suburbs and satellite towns, with limited housing supply supporting price appreciation in prime neighbourhoods while affordability pressures and competing housing options continue to weigh on satellite-town markets.
