Nairobi’s property market showed mixed signals in the first quarter of 2026, with suburban home prices and rents rising even as land price growth slowed and satellite town home sales weakened, according to new HassConsult indices.
The Hass Property Index shows that sale prices in Nairobi’s suburbs rose by 1.1 per cent in the quarter, improving from 0.8 per cent in the fourth quarter of 2025, supported by sustained demand for standalone houses. Rental prices in the suburbs also increased by 1.3 per cent over the same period.
But the Hass Land Index points to softer momentum in land transactions. Land prices in Nairobi’s suburbs rose by just 0.8 per cent in the quarter to an average of KSh228.8 million per acre, down from 1.3 per cent growth in the previous quarter. HassConsult attributed the slowdown to tighter economic conditions and uncertainty around Nairobi County planning approvals, which has reduced developers’ visibility on what can be built on acquired parcels.
Satellite towns were also under pressure. Land prices in Nairobi’s 14 satellite towns grew by only 0.5 per cent to an average of KSh33 million per acre, the slowest pace in five years, while sale prices for new units in satellite towns fell by 0.9 per cent as middle-class buyers struggled with reduced purchasing power.
“Demand for land parcels for new suburban projects eased during the period, as developers continued to face uncertainty around planning approvals at county level, with some projects further delayed by resistance from resident associations,” said Sakina Hassanali, HassConsult Co-CEO and Creative Director.
The land index shows that five Nairobi suburbs recorded price contractions in the quarter, led by Muthangari at -2.8 per cent, Loresho at -2.0 per cent and Kitisuru at -1.5 per cent. Nyari and Langata were the strongest performers, with land prices rising by 3.1 per cent and 2.4 per cent respectively.
In satellite towns, half of the 14 markets tracked posted negative land price movements, including Athi River at -2.5 per cent, Ngong at -1.7 per cent and Syokimau at -0.7 per cent. Ruiru remained the strongest performer, recording land price growth of 2.8 per cent in the quarter and 10.6 per cent over the year.
The property index painted a more resilient picture for Nairobi’s suburbs, especially in the house segment. Lavington led quarterly house price growth at 4.2 per cent, followed by Spring Valley at 4.0 per cent and Kilimani at 3.9 per cent. Karen, Loresho and Westlands each recorded house price growth of 3.8 per cent.
HassConsult said suburban house prices were being supported by undersupply, while apartment prices remained weighed down by oversupply in some locations. In the apartment segment, Muthangari and Riverside recorded price growth of 3.8 per cent and 1.8 per cent respectively, but Westlands and Upper Hill posted declines of 2.8 per cent and 2.5 per cent.
“House sale price growth in the suburbs partly stems from undersupply of units and bullish increases in many city suburbs, led by the likes of Lavington and Spring Valley. The correction in apartment prices reflected increased supply, moving to saturation in some areas,” Hassanali said.
Rents continued to rise across both Nairobi suburbs and satellite towns, although HassConsult noted that the slower pace of growth points to mounting affordability pressure. Average rent in the suburbs crossed the KSh200,000 mark for the first time, reaching KSh201,832, while average rent in satellite towns hit a record KSh64,765. Rental yields remained steady at 7.4 per cent in Nairobi suburbs and rose to 5.3 per cent in satellite towns.
The figures suggest a market increasingly shaped by affordability constraints, planning uncertainty and a shift in investor appetite. HassConsult noted that investors have been allocating more capital to passive but liquid assets such as unit trusts and government securities, signalling a wait-and-see approach among would-be land buyers.
