(NAIROBI, KENYA) – Land price growth in Nairobi’s suburbs slowed to a three year low in the third quarter of 2026, according to the latest HassConsult Land Price Index.
The slowdown extends a broader easing in quarterly appreciation over the past two years. It was also seen in Nairobi’s satellite towns, where price growth fell by more than half compared with the previous quarter.
The easing follows stronger price growth in the second quarter, but the latest results show wide differences between individual locations.
In Nairobi’s suburbs, 13 of the 18 locations continued to record positive price movements.
Karen at KES 81.8 million ($12,584) stayed among the strongest performers, while Westlands at KES 521.7 million ($80,261), Kitisuru at KES 105.2 million ($16,184), Muthaiga at KES 234.8 million ($36,123) and Loresho at KES 120.2 million ($18,492) recorded faster growth than in the previous quarter.
Several suburbs that led growth in the second quarter saw a sharp slowdown. These included Langata at KES 94.9 million ($14,600), Runda at KES 106.5 million ($16,384) and Nyari at KES 128.6 million ($19,784).
Five suburbs recorded actual price falls during the quarter, as land prices in Nairobi’s suburbs averaged KES 233.5 million ($35,923) per acre.
“The sharp moderation in the third quarter suggests that the previous quarter’s rebound was a temporary acceleration rather than a sustained shift in land price momentum. Nairobi’s land market appears to be returning to a period of more measured appreciation, following the stronger gains recorded earlier in the year,” said Sakina Hassanali, HassConsult Co CEO and Creative Director, in a press statement.
The longer term performance of individual suburbs also remains varied. Over the past eight quarters, Karen recorded cumulative land price growth of about 19.6%, the highest among the 18 suburbs tracked by the index.
In Nairobi’s satellite towns, the overall slowdown came with a drop in the number of locations seeing falling prices.
Nine of the 14 satellite towns recorded positive price movements, compared with seven in the previous quarter.
Ruiru at KES 42.5 million ($6,538), Thika at KES 33 million ($5,076) and Ruaka at KES 117.9 million ($18,138) recorded slower growth after strong gains in the previous quarter.
Ngong at KES 33.5 million ($5,153) and Limuru at KES 27.5 million ($4,230) returned to positive price growth after recording falls in the second quarter. Land prices in Nairobi’s satellite towns averaged KES 33.7 million ($5,184) per acre.
The index’s longer term investment comparisons point to a changing link between land growth and returns from other assets.
Over the past two years, land price growth in 12 of the 14 satellite towns was lower than the modelled cumulative return from rolling 91 day Treasury bills. Only Ruiru and Juja beat the benchmark.
“Satellite towns have historically attracted buyers investing in land for future capital appreciation. However, as returns from passive landholding become less competitive with alternative investments, the economic justification for purchasing land may increasingly depend on its intended use. This could signal a gradual shift towards more use driven investment in some of Nairobi’s satellite towns, particularly as these markets mature,” added Hassanali.
The third quarter results reflect a period of slower overall land price growth across Nairobi and its satellite towns. Longer term investment comparisons point to possibly changing dynamics in the satellite land market.