Nairobi — Rental apartments in Ruaka continue to be the most attractive for many Kenyans owing to their proximity to town and access to affluent suburbs while Ngong and Kitengela have emerged as new lucrative satellite towns for Nairobi residents.
A report by Hass consult reveals that in the first quarter of 2021, demand for apartment rents in Ngong and Kitengela rose by 5.5 percent and 5.2 percent while Ruaka edged up 2.9 percent.
"Ruaka solidifies its position as the largest supplier of apartments in the satellite towns accounting for 30 percent of all advertised units. Satellite towns recorded the strongest growth in apartment rents with Ngong and Kitengela at 5.5 percent and 5.2 percent respectively," the report revealed
Sakina Hassanali, Head of Development Consulting and Research at HassConsult attributed Ruaka's strong stance to its easy access to affluent suburbs which renders high land values that can be absorbed in high-density apartment developments.
"Ruaka has therefore become the largest stockholder of apartments within the satellite as it presents the ability for the working population to enjoy both housing affordability and reduced transportation costs," Hassanali said.
Overall, property sales prices registered a 2.89 percent raise over the same period and a 6.8 percent annual growth from March 2021.
Apartment sales pricing however remained static with a 0.6 percent drop in the quarter and a 3.4 percent drop in the year to March 2022.
"Property rental prices, however, showed a mild improvement primarily driven by a rebound of previously depressed apartment rental prices. Apartment asking rents recorded a 2.2 percent increase over the quarter lifting overall asking rents by 1 percent. Detached, semi-detached house rents were static at 0.7 percent, and 0.2 percent respectively," the report revealed.
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The demand for detached houses also rose after registering a growth of 4.3 percent and an 11.8 percent annual growth.
Owing to eased access through the Redhill Link road, Spring Valley, Nyari and Kitisuru saw the highest growth of 4.2 percent, 3.9 percent, and 2.7 percent respectively.
Hassanali added that looking ahead to the Landlord and Tenant Bill, 2021 which if enacted into law will give the government power to cap rent increases on commercial and residential premises could potentially influence the
direction on rents.
"It is still too early to say with certainty the impact of the proposed rent control laws, but investors are keeping tabs. Similar laws such as the 2016 Banking Act that aimed at controlling interest rates to support consumers had
unintended consequences of reducing credit availability for the market."
