Kenyan investors are increasingly steering their money towards liquid investment options such as government securities and unit trusts instead of purchasing land, signalling growing caution within the property market.
According to the latest HassConsult Property Price Index for the first quarter of 2026, many investors are adopting a wait-and-see approach amid shifting economic conditions and softer demand in the land sector.
The report noted a steady rise in capital flowing into passive investments, suggesting that prospective land buyers are holding back from committing to property purchases.
Even so, several areas along Nairobi’s key growth corridors continued to record gains. Ruiru led performance along the Thika Road corridor with a 2.8 percent increase in land prices, followed by Juja at 1.2 percent.
Elsewhere, Ongata Rongai posted a 0.9 percent rise, while Kitengela registered a 0.8 percent increase.
Why Land Prices in Satellite Towns Are Cooling
The report indicated that land prices in Nairobi’s satellite towns have begun to soften after years of rapid appreciation. Over the past five years, average land prices per acre climbed by about 50 percent from Ksh22 million, while values nearly doubled over a decade from Ksh16 million per acre.
Analysts attributed the slowdown to earlier infrastructure-driven gains already being fully priced into the market, coupled with tighter economic conditions that have reduced affordability for individual home builders.
Out of the 14 satellite towns surveyed, seven recorded quarterly declines in land prices. These included Athi River, which fell by 2.5 percent, Ngong at 1.7 percent, and Syokimau at 0.7 percent.
Karen Dominates Nairobi’s Land Market
Within Nairobi’s high-end property market, Karen accounted for the largest share at 19.8 percent, cementing its position as the city’s most dominant land market.
It was followed by Runda at 13.6 percent and Lavington at 12.5 percent.
Other notable areas included Kilimani with 7.1 percent and Kitisuru at 6.4 percent.
Mid-tier market shares were recorded in Lang’ata, Westlands, Parklands, and Muthaiga, while smaller shares were seen in suburbs such as Gigiri and Upperhill.
Nairobi Property Development Loses Momentum
The report further revealed a slowdown in Nairobi’s property development sector, with the value of new building approvals declining by 9.3 percent in the 12 months leading to December 2025.
Despite the broader cooling trend, suburban land prices still recorded modest growth, increasing by 0.8 percent during the quarter, translating to an average rise of Ksh1.92 million per acre.
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In satellite towns, average land prices edged up by 0.5 percent to Ksh33 million per acre, marking the slowest pace of growth witnessed in the last five years.
HassConsult noted that the market continues to cool after a prolonged rally that saw land values surge sharply over both the five-year and 10-year periods.
