Apartments in Lang’ata recorded the highest rise in rent prices of all Nairobi suburbs in the three months to March, as the rental market maintained its recovery from last year’s economic fall-out of the Coronavirus pandemic.
Latest industry data by Realtor HassConsult shows that apartments in Lang’ata posted a 3.6 per cent jump in the period under review followed by those in Parklands at 0.9 per cent rise and Riverside (0.6 percent).
But apartments in the more lavish suburbs of Kilimani, Westlands and Upper Hill recorded falls in rent prices in the period as workers and families grappling with the Covid-19-induced hardships opted for more affordable apartments in other parts of the city.
Apartments in Kilimani reported the highest fall in rent prices at 2.8 per cent followed by Westlands at 2.2 per cent and Upper Hill (1.2 per cent).
The fall in rent prices in the three location came at a time the economic fallout from the Coronavirus crisis saw a majority of those who were paying high rents in plush apartments move to cheaper apartments in other parts of the city.
Overall, rent prices for apartments and houses remained on its recovery path from last year’s economic fall-out.
“On the rental front prices across all property types continue to improve increasing by 1.2 percent over the quarter,” HassConsult showed in the report.
Houses in Donholm recorded the highest rise in rental prices of all Nairobi satellites in the three months to March but three suburbs recorded falls in rent in the period.
The report shows that rent prices for houses in Donholm posted a 2.2 per cent rise in the period, followed by those in the posh suburbs of Muthaiga and Nyari at 1.7 per cent and 1.6 per cent respectively.
HassConsult attributed the increase in house rents to a preference for more space compared to that offered by apartments.
“Working and schooling from home has shed light on the importance of more space, leading to increased demand for homes with compounds,” said Sakina Hassanali, head of property development consulting and research at HassConsult.
Houses in Gigiri recorded the highest decline at 2.5 per cent followed by those Ridgeways at 1.6 per cent and Spring Valley (0.8 per cent) as property owners lowered prices to match the fall in demand in the wake of the Covid-19 induced hardships.