Kenyan property prices continued their upward climb in 2025, even as rental costs eased, according to the fourth-quarter report for the year by HassConsult.
The real estate consultancy found that house prices rose by 7.7% in 2025, up from 5.2% growth recorded in 2024, marking the fastest annual increase since 2015. In contrast, asking rents fell by 2.5% over the year, offering some relief to tenants whose purchasing power has been under pressure in recent years.
HassConsult attributed the sharp rise in prices within the Nairobi Metropolitan area to stronger demand for standalone homes, alongside a slowdown in land price growth. The trend was also influenced by developers scaling back flat developments after an oversupply in parts of the market.
Overall, property values edged up by 0.3% in the final quarter and 7.7% for the full year, while rents declined by 0.9% in the fourth quarter and 2.5% in 2025. Rental softening was also recorded at the Coast and in other major towns.
By the end of December 2025, the average house price in Nairobi stood at KSh 39.6 million. Larger apartments with four to six bedrooms averaged KSh 45.1 million, while homes with one to three bedrooms were priced at about KSh 12.8 million.
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Price growth was evident across most satellite towns, led by Juja, where annual house prices rose by 12.2%. Although momentum slowed in the final quarter, gains remained solid in most areas, except for Kiambu, Ngong and Kiserian, which saw declines towards the end of the year.
Land prices also increased, though at a slower pace than in 2024. The average cost of an acre in satellite towns such as Ruaka, Syokimau and Juja rose by 6.21% to KSh 32.9 million, down from 10.62% growth the previous year. In established suburbs including Muthaiga, Langata and Lavington, land prices grew by 5.92% to an average of KSh 226.8 million per acre.
Driven by a growing middle class and rising economic activity, demand for new housing outstripped supply, with standalone homes emerging as the strongest segment. Prices for detached houses climbed by 9.5%, outpacing semi-detached units at 5.2% and apartments at 2%.
Separately, HassConsult noted that Kenya outperformed major global economies on property investment returns. In the year ending June 2025, Kenyan residential property delivered the highest returns worldwide, beating markets such as the United States, the United Kingdom, Canada and South Africa.
