Nairobi:Land-price growth in Nairobi’s suburbs decelerated to a three-year low in the third quarter of 2026, continuing a trend of moderation in quarterly appreciation over the past two years, as reported by the latest HassConsult Land Price Index. This trend was similarly observed in Nairobi’s satellite towns, where price appreciation also fell by more than half compared to the previous quarter.
According to Kenya News Agency, the slowdown follows a period of stronger price appreciation in the second quarter, but recent results show significant variation in performance between different locations. In Nairobi’s suburbs, 13 out of 18 monitored locations still witnessed positive price movements. Among them, Karen remained one of the top-performing suburbs with a value of KES 81.8 million, while Westlands, Kitisuru, Muthaiga, and Loresho experienced faster appreciation than the previous quarter.
Conversely, several suburbs that led growth in the second quarter saw a sharp moderation, including Langata, Runda, and Nyari. Five suburbs even recorded actual price declines, with the average land price in Nairobi’s suburbs standing at KES 233.5 million per acre. According to Sakina Hassanali, HassConsult Co-CEO and Creative Director, the sharp moderation in the third quarter suggests that the previous quarter’s rebound was a temporary acceleration rather than a sustained shift in land-price momentum.
In Nairobi’s satellite towns, the overall slowdown was coupled with fewer locations experiencing price drops. Nine out of 14 satellite towns recorded positive price movements, up from seven in the previous quarter. While towns like Ruiru, Thika, and Ruaka saw slower appreciation after strong growth in the previous quarter, Ngong and Limuru returned to positive price growth. The average land price in Nairobi’s satellite towns was KES 33.7 million per acre.
The Index’s longer-term investment comparisons highlight a changing relationship between land appreciation and returns from alternative assets. Over the past two years, land-price appreciation in 12 of the 14 satellite towns has been lower than the modelled cumulative return from rolling 91-day Treasury bills, with only Ruiru and Juja outperforming the benchmark. Hassanali noted that while satellite towns have historically attracted buyers for future capital appreciation, the economic justification for purchasing may increasingly depend on intended land use as returns from passive landholding become less competitive.
