As Nairobi continues to establish itself as an administrative city, people are slowly considering moving and finding other places where they can comfortably call home.
The decision to quit city living is majorly pegged on affordability and other factors such as security, proximity to social amenities and proper infrastructure.
Also, the need to live in a quiet environment free from city drama is driving the increasing appetite for land ownership in the country.
Now with devolution taking shape, most satellite towns which were previously neglected and left behind in terms of development are sprouting and attracting land buyers.
Each and every year, the land prices in these satellite towns increase by a significant amount making the areas ideal for settlement or even investment (Imagine buying a piece of land at Ksh2 million then selling it for Ksh3.7 million after 2 years).
With 2025 starting, having an overview of land prices across different satellite towns within Nairobi can help one make an informed saving plan before becoming a landowner.
Land market trends
Nairobi satellite towns include Athi River, Juja, Kiambu, Kiserian, Kitengela, Limuru, Mlolongo, Ngong and Ongata Rongai.
Others are Syokimau, Thika, Tigoni, Ruaka and Ruiru.
According to HassConsult, a real estate company, price indices for the third quarter of 2024 showed a significant change in many areas across the city with Nairobi suburbs rising by 1.6 per cent during the period, while prices in Nairobi’s satellite towns rose by 3.02 per cent.
The report by the real estate firm further detailed that the price growth was supported by rising land demand for new developments, as the real estate sector continued its recovery from a prolonged slump. In the city’s suburbs, land prices also increased by more than one per cent, in each of the last four quarters, breaking the prior run of 26 straight periods of sub-one per cent growth.
“Parklands, which has had a surge of development activity – for both commercial and residential developments in the last two years, led the market with land price increases of 3.4 per cent to average Ksh434.2 million per acre,” the report read in part.
“Langata and Kileleshwa also made a strong showing with gains of 2.9 per cent and 2.8 per cent respectively, indicating that demand is shifting back to areas that can support multi-dweller units in a market that still remains price sensitive in a tough economy,” it added.
The report noted that satellite towns along Mombasa Road which include Syokimau, and Mlolongo were among the areas that recorded the biggest jump due to the Expressway and other development projects in the area.
The realtors argued that land investment could earn someone better returns than those investing in bonds and shares at the Nairobi Securities Exchange (NSE).
On the other hand, Thika and Juja peaked in land prices after the Kiambu County government announced a new masterplan to transform the town into an industrial smart city, which saw developers race to take up land in anticipation of a potential jump in demand for housing and commercial outlets in the area.
Land prices in satellite towns
According to HassConsult‘s report, land in suburb areas such as Westlands is currenly retailing at Ksh479 million per acre while in Lavington, is it Ksh255 million per acre.
This makes it quite pricey for ordinary Kenyans looking to buy or invest in land.
But in satellite towns, many sellers are willing to subdivide their large tracts of land and sell them at more pocket-friendly charges. For instance, in areas like Katani, which is off Mombasa Road from Syokimau, 100 by 100 pieces of land cost roughly Ksh3.2 million.
HassConsult noted that an acre of land in Athi River costs Ksh20 million while in Juja the same piece of land costs Ksh22 million.
An acre of land in Kiambu is Ksh49 million, Ksh11 million in Kiserian, Ksh17 million in Kitengela, Ksh23 million in Limuru and Ksh43 million in Mlolongo.
In Ngong, an acre costs Ksh36 million, Ksh27 million in Rongai, Ksh110 million in Ruaka, Ksh34 million in Ruiru, Ksh36 million in Syokimau, Ksh28 million in Thika and Ksh33 million in Tigoni.
Despite HassConsult listing the prices per acre, owners in those satellite towns are willing to sell off their land after sub-diving to attract quick buyers.
Moreover, with the implementation of residents’ policies which restrict commercial buildings in some of these areas, the owners have been forced to split their land that fit small household developments.
They are selling small pieces of land just enough to host a main house, parking and a small garden.
With these developments, people are now able to buy land for less than Ksh5 million in all the satellite towns in Nairobi depending on size.
“Prices are more dynamic in satellite towns compared to suburbs, due to evolving development plans and impact of new infrastructure on buyer behaviour,” Sakina Hassanali, Head of Development Consulting and Research at HassConsult, explained in the report.
However, before settling anywhere, one is encouraged to do due diligence which involves confirming the legitimacy of the title deed in the area, security status, availability of social amenities, infrastructure and residential rules.
Knowing exactly what residential rules stipulate also helps to avoid conflict, especially in satellite towns where commercial buildings are not allowed.
