Land prices grow 19pc in five years

Business Daily Kenya:  Land prices in the Nairobi Metropolitan Area have increased at a compounded annual growth rate (CAGR) of 19.4 per ce...

Business Daily Kenya: 

Title deeds. Photo/File

Land prices in the Nairobi Metropolitan Area have increased at a compounded annual growth rate (CAGR) of 19.4 per cent in the last five years, a study done by Cytonn Investment indicates.

The report, themed “Investment Grade Real Estate and Land Remain the Best Investment Bet,” indicates a five-year price change of land in the same area increased 2.5 times over the same period Commercial zones of areas such as Kilimani, Upperhill and Westlands recorded the highest capital appreciation of 24.3 per cent with a five-year CAGR.

The report further says that satellite towns such as Ongata Rongai, Ruaka and Athi River recorded a five-year CAGR of 20 per cent, while high rise residential areas such as Ridgeways, Kileleshwa and Kilimani recorded a five-year CAGR of 17.7 per cent.

It indicates that low-rise residential areas such as Spring Valley, Kitisuru and Karen recorded an increase of 14.6 per cent.

Speaking during the presentation of findings, Head of Private Equity Real Estate, Shiv Arora said key drivers for increasing land prices include high demographic growth, rapid urbanisation, improved infrastructure, easing of land transactions and expansion of the middle-income group.

Based on individual market performance, Arora said, satellite areas such as Athi River, Ongata Rongai, Syokimau-Mlolongo, Limuru and Dagoretti recorded the highest growth rates with five-year CAGR above 25 per cent.

The post Land prices grow 19pc in five years appeared first on Mediamax Network Limited.

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