Nairobi Estates With the Fastest Rising Rents in the Past Three Months

Nairobi’s housing market recorded strong rental growth in the final quarter of 2025, while land prices in several prime estates declined, according to new data from Hass Consult released on 27 January.

Rental prices rose across most Nairobi suburbs between October and December, with growth outpacing that of satellite towns. Runda posted the highest increase at 3.1 per cent, followed by Spring Valley at 2.8 percent. Ridgeways and Muthaiga recorded similar gains, while rents in Lavington and Lang’ata rose by 2.6 percent. Kilimani, Gigiri, Loresho and Kileleshwa registered increases of between 2.2 and 2.6 percent. Nyari, Karen and Westlands also saw modest but consistent growth.

The rise in rents reflects a combination of sustained demand and higher costs. Rapid urbanisation, inflation and increased construction expenses have pushed housing costs upward. At the same time, infrastructure improvements in suburban estates have made these areas more attractive to tenants. Demand for high-end apartments in satellite towns also supported rental growth.

Among satellite towns, Juja recorded the largest increase in rents at 2.9 percent. Ongata Rongai and Athi River also posted notable gains, driven by demand for modern apartments and improved transport links.

Hass Consult Chief Executive Officer Sakina Hassanali said rental yields in Nairobi have risen above 7 percent for the first time in several years, following a prolonged period at between 5 and 6 percent. She noted that the improvement has been broad-based, despite uneven performance across different property segments.

In contrast, land prices declined in several estates during the same quarter. Muthangari recorded the sharpest fall at 0.8 percent, while Westlands and Muthaiga saw smaller declines of 0.3 percent and 0.1 percent respectively. In satellite towns, Syokimau posted a 0.4 percent drop, indicating weaker demand for plots. Spring Valley, Loresho and Upper Hill experienced slower growth but remained in positive territory.

Despite the quarterly declines, long-term land price growth remains significant. Average land values in Nairobi suburbs reached Ksh226.8 million per acre by December 2025, up from Ksh30.3 million in 2007. Upper Hill remained the most expensive area at Ksh560.6 million per acre, followed by Westlands at Ksh502.7 million. Parklands, Muthangari and Kilimani also recorded prices above Ksh430 million per acre.

Mid-range upscale neighbourhoods such as Riverside, Kileleshwa, Spring Valley and Lavington were priced between Ksh275 million and Ksh369 million per acre. Ridgeways, Lang’ata and Karen remained more affordable by comparison, with average prices below Ksh100 million per acre.

On an annual basis, Ridgeways was the only Nairobi suburb to record a decline in land prices in 2025, slipping by 0.1 percent. Kiambu was the only satellite town to post a full-year drop, at 1.5 percent. Ridgeways, however, recorded a 0.6 percent increase in the final quarter, reversing earlier losses.

Hass Consult said the mixed performance reflects a period of adjustment in the property market. Areas that previously saw rapid price growth are slowing, while weaker locations are stabilising. The firm noted that demand for development land in prime locations continues to support overall land price growth, marking the strongest expansion since 2016.