Nairobi — Landowners in Nairobi's satellite towns are reaping the benefits of high land prices as investors flock in.

Realtor HassConsult's latest data shows prices of land in Ngong, Syokimau, Thika, Athi River, and Mlolongo increased in the first six months to June this year by 20.7 percent, 17 percent, 15.9 percent, 15.5 percent, and 13.9 percent, respectively.

An acre of land in Mlolongo has appreciated to Sh32 million, while Syokimau's has appreciated to Sh30.3 million.

Likewise, the same parcel of land in Thika goes for Sh25.3 million, followed by Athi River at Sh18.2 million and Mlolongo at Sh36.3 million.

"Ngong Town, however, bucked the trend with bullish land price increases over the year to June 2023 of 20.7 per cent, four times higher than the average satellite town increases across the tracked towns," HassConsult report says.

"The Ngong-Kiserian-Isinya road construction, formerly a rough road, now seamlessly connects the three towns," it adds.

"Ngong residents have less traffic to contend with when travelling to and from work thanks to the expansion of Ngong Road, and the Expansion of the Ngong- Kibiko-Suswa Bypass opening up Kibiko area."

On the other hand, suburb areas of Nairobi that recorded the highest land appreciation include Spring Valley (17.3 percent to Sh236.8 million), Loresho (14.5 percent to Sh102 million), Langata (11.1 percent to Sh77.1 percent), and Muthaiga (5.9 percent to Sh213.1 million).

"Land pricing is a function of its development potential. Therefore, land in areas with strict development density guidelines tend to have a price ceiling while land in areas that are subject to less rigidity around the densities tend to increase in pricing in tandem with the approved density," said HassConsult Head of Development, Consulting and Research Sakina Hassanali.