The change in prime property prices in Nairobi was the third highest globally in the 12 months to June, according to Knight Frank's Prime Global Cities Index for the second quarter of 2012.
The change was highest in Bangkok and Jakarta at 28.8 per cent and 28.5 per cent respectively. Nairobi recorded a 21.8 per cent increase in the one-year period.
Prime property prices remained steady in the Kenyan capital, increasing by the same margin of three per cent similar to the first quarter of 2012. The city recorded the fourth highest increase in prime property values in the three months to June after Bangkok, Miami, and Jakarta. "Buyers and investors are no longer just concentrating on those cities that attract a high level of international demand and a good quality of life but the latest results suggest they are increasingly seeking prime property in those cities best sheltered from the EU debt debacle," Kate Everett-Allen said in the report.
She noted that despite the positive results in Q2, which saw the world's key cities record strongest growth in 18 months since 2010 with a 1.4 per cent increase, the overall outlook for the world's prime markets is muted. "We are unlikely to see significant sustained growth given the numerous downside risks facing the global economy."
Since its low in Q2 2009, the Prime Global Cities Index - which tracks the performance of the top five per cent of mainstream housing markets - has been largely subdued, recording average quarterly growth of 0.8 per cent.