Property prices rose by 3.75 percent in the quarter ending June, compared to a growth of 2.45 percent in the first quarter of the year.
On an annual basis, property prices rose by 7.8 percent, compared to 4.9 percent in the 12 months to March 2025.
HassConsult found that the detached housing segment, which is made up of townhouses and villas, was the most vibrant in price growth at five percent, outpacing semi-detached units and apartments, which grew at 1.3 and 1.1 percent, respectively, in the quarter.
“Detached house prices grew at their fastest quarterly pace in nine years, which also reflected in suburbs such as Muthaiga, Karen, and Runda—that are largely exclusive of apartments— reporting faster property price growth,” said Ms. Sakina Hassanali, Co-CEO & Creative Director at HassConsult. “There is a general lack of supply of detached houses leading to the increased prices.”
As an investment option, the improved annual price growth of 7.8 percent for all property (and 10.9 percent for detached houses) improved the competitiveness of property against other asset classes such as government Treasury bills, whose interest rates have now fallen to the 8.1 to 9.7 percent level from 16 percent a year ago.
In contrast to the sales market, rental prices contracted by a marginal 0.2 percent in the second quarter compared to an increase of 0.3 percent in quarter one, highlighting the price sensitive nature of letting in a tough economic climate characterized by job losses and stagnant pay.
“Landlords are therefore increasingly forced to forego an increase in rent prices in order to protect occupancy in a price sensitive market,” added Ms. Hassanali. Houses recorded a fall of 1.3 percent in asking prices, even as rents in apartments rose by 2.4 percent.
The higher weighted average rental price of KES.224,557 per unit for houses outstrips that of apartments KES.104,794, meaning that the negative growth for the standalone units pulled down the overall property sector growth.
Houses in Tigoni, Ruiru, Kiserian, Kiambu, Langata, Ongata Rongai, Gigiri and Ridgeways however continued to back the market with price gains of over three percent, while apartments in Upperhill, Kileleshwa and Westlands lagged with declines of between 2.0 and 4.6 percent.
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