House prices record 1.26 per cent rise in third quarter

Kenya Bankers Association (KBA) CEO Habil Olaka (left) and KBA Director of Research on Financial Markets and Policy Jared Osoro during the launch of the KBA Housing Price Index findings for Quarter 3 of 2015.

Nairobi, Kenya: Average house prices in Kenya increased by 1.26 per cent during the third quarter of 2015 representing a relatively faster increase compared to the previous quarter’s 0.2 per cent increase. According to the Kenya Bankers Association Housing Price Index (KBA-HPI), the observed modest price movement signals the softening of the overall house prices in line with the demand and supply conditions.

As observed during the first two quarters of 2015, apartment prices appear to be moving more than those of bungalows and maisonettes, reinforcing the rising middle class’s preference for the relatively more affordable apartments over bungalows and maisonettes. Similarly, the demand for units was influenced by the location and available social amenities, and a preference for gated communities was observed by the KBA-HPI, implying the importance of convenience and security.