House prices in Nairobi’s suburbs stagnated last year, owing to an overall drop in the property costs due to lower demand tied to the economic fallout of Covid-19.
HassConsult, which conducts property pricing index in the country, said on Wednesday that overall housing prices in the city increased by a mere 0.17 per cent largely due to a 1.2 per cent price decline in the three months to December.
It attributed the stagnant growth to a decline in prices for apartments by an average 1.8 per cent in the last quarter and 4.6 per cent over the year.
The cost of homes in upmarket Kileleshwa and Kilimani suburbs, which accounted for 45 per cent of all properties on sale, registered the biggest decline in the year by 9.9 per cent and 8.6 per cent respectively.
The firm linked the price fall to high land prices amid a pandemic economic fallout – which has led to job losses and pay cuts – as well as cuts on bank loans and mortgages.