Over the years, Nairobi’s upmarket Lavington and Kilimani have been among the most
lucrative places to make land and property investments.
However, according to the 2022 HassConsult Quarter Three Report, those who had
made investments in these areas made less profit compared to select satellite towns such
as Kitengela. Kitengela was the most profitable place to invest in, having recorded a 10-
year change of 3.07-fold. Lavington recorded 1.76-fold while Kilimani registered 1.79-
fold in the same period. Kitengela’s profitability was attributed to the increase in land
value due to various investments made around the area, including the expansion of
roads.
Additionally, surrounding towns such as Syokimau also outperformed the predominant
posh neighborhoods in profitability.
The report noted that Syokimau town, for instance, is now more accessible following the
opening of the Nairobi Expressway over the quarter. The town was the best performer
over the quarter with prices increasing by 6.8%. It was also the best-performing town
annually with prices improving by 20.1%.
The high demand for these areas saw land prices surpass the Ksh100 million per acre
mark. According to the report, an acre of land in Lavington costs Ksh231 million while a
similar plot in Kilimani goes for Ksh403 million.
The increasing cost of living also pushed a number of people to invest in areas where
land is affordable but also affordable in terms of living expenses. Investments in
residential apartments also drove people away from posh neighborhoods as land value
dropped and they became crowded.
This is the reason why some derivatives such as Karen have strict guidelines for the
construction of apartments and bedsitters. Therefore, a number of area estate
companies were advising their clients against taking their investments in neighborhoods
with strict rules.
Another area that recorded record spikes in land value was Juja and its environs, which
is becoming lucrative due to various infrastructural developments. An acre of land in
Juja is estimated at Ksh18 million.
Real estate companies such as Fanaka Real Estate stated that such areas are growing as
many businesses are looking for areas outside of the city, where they can get affordable
office and parking spaces for their employees and clients.
The good infrastructure network has also facilitated the establishment of tertiary
education institutions in the area and the availability of other social amenities that make
life comfortable.
Profitability of Land Investments in Nairobi: Kitengela Beats Lavington and Kilimani
