Leafy suburbs property prices drop on Trump budget cuts effect

Nairobi Expressway captured from Westlands on April 23, 2025. [Benard Orwongo,Standard] Property prices in Westlands have dropped the most in the last year in the latest index by real estate firm HassConsult, as the effects of the radical trade policies by US President Donald Trump start showing in the sector. This is as satellite towns, such as Juja, gained at the expense of leafy suburbs associated with diplomatic tenants, United Nations Staff and workers in high-end non-governmental organisations like Gigiri, which recorded a drop in property asking prices. Property prices in Juja saw the highest increase in the last year at 13.8 per cent when considering all houses, followed by Loresho at 11.7 per cent and Kiserian at 11.4 per cent. However, apartment prices in Westlands dropped 13.3 per cent in the last year and 6.6 per cent in the first quarter of 2025. This is the highest drop in property prices as recorded by HassConsult, with prices in Muthangari cooling off by 11.6 per cent and 4.6 per cent in the first quarter of 2025, while Upperhill also went down 11.1 per cent in the year and 6.3 per cent in the quarter. The drop in property prices has been linked to the macroeconomic conditions, which are shrouded in uncertainty that has trickled down to the Kenyan market. Other areas that have recorded a drop in property prices are Riverside (10.4 per cent), Gigiri (7.8 per cent), Kitisuru (3.8 per cent), Lavington (3.1 per cent), Kileleshwa (0.8 per cent), and Langata (0.2 per cent). While the highest drop in property prices was recorded in Westlands (6.6 per cent) for the first quarter of the year, when all houses are considered, the drop eased to 0.2 per cent. Additionally, when all houses were considered in the area, property prices appreciated by 0.9 per cent in value over the last year. Apartment prices in Ruaka and Thika dropped by 2.6 and 1.6 per cent, respectively, in the last year. In the suburbs, it was only the Parklands and Kilimani areas where apartments gained value at 4.6 and 0.2 per cent, respectively. Similarly, the two areas were the only ones that recorded a positive growth in apartment prices in the quarter. This is at 0.8 per cent for Parklands and 0.3 per cent for Kilimani. The highest positive price shift when all houses were considered in the satellite area during the quarter was recorded in Juja at 4.2 per cent, followed by Limuru at 4.0 per cent and Tigoni at 3.7 per cent. Considering all houses in the suburban area, Runda recorded the highest positive shift in prices during the quarter at 5.2 per cent, followed by Muthaiga at 4.6 per cent and Ridgeways at 3.6 per cent. HassConsult notes in the index that the city's suburbs reported their first asking price contraction in two years at -0.8 per cent, which was weighed down by declines in asking prices in Muthaiga (-4.9 per cent), Nyari (-4.7 per cent), & Kilimani (-4.6 cent). "The global economic uncertainty is influencing property markets worldwide, and Kenya is no exception," the real estate firm explains. It cites the geopolitical tensions, interest rate shifts and policy changes which may have prompted more cautious investor behaviour. For instance, HassConsult explains, the US commercial real estate sentiment dropped by 30.5 per cent in Q1 2025, while in Australia, investment lending rose by 18 per cent amid expectations of rate cuts and market volatility. "Locally, in the pricier city suburbs, the fall in asking prices revealed concerns about a fall in demand after the US cut off funding for its USAID programme and its affiliated programmes in Kenya. This action has led to mass layoffs, which affect the target market for the higher-end rental segment," HassConsult explains in the report. The real estate firm notes that house prices in Nairobi's satellite towns grew at the fastest pace in two and a half years, on rising demand due to more affordable prices. This is while overall, property prices rose by 2.45 per cent in the quarter, compared to growth of 0.8 per cent in the fourth quarter of 2024, while annual price growth stood at 4.9 per cent, compared to 5.2 per cent in the previous quarter. It adds that in Nairobi's satellite towns, asking prices rose by 2.4 per cent, with Juja and Limuru standing out with gains of 4.2 and 4.0 per cent, respectively. "All 10 surveyed towns reported price appreciation across all properties," says the real estate firm. On the other hand, property prices in Nairobi's suburbs contracted for a fifth straight quarter, albeit by a slimmer margin of 0.4 per cent compared to 0.8 per cent in the fourth quarter of 2024. "The overall price rebound was mainly driven by higher asking prices on property in Nairobi's satellite towns, which led to growth of 2.4 per cent," said Sakina Hassanali, co-chief executive and creative director at HassConsult. She added: "The improvement of infrastructure and amenities has given satellite towns the convenience that was previously the preserve of suburbs but at a lower average price point of Sh14.46 million per unit compared to Sh32.46 million in the suburbs, putting them within reach of a larger buyer pool." The index adds that rental prices across all properties edged up by 0.3 per cent in the period, marginally higher than the growth of 0.2 per cent for the previous quarter. Similar to the trend is the sales segment; asking rents in Nairobi's satellite towns outperformed the suburbs in appreciation, led by Ruiru, Ngong, and Limuru, with rental price growth of 5.3 per cent, 5.1 per cent, and 4.9 per cent, respectively; the towns saw their quarterly rents go up by 1.9 per cent on average. "Improving economic conditions, including stable and low inflation, allowed landlords in satellite towns to raise average asking prices," says the real estate firm.

Leafy suburbs property prices drop on Trump budget cuts effect

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