Benefits of Owning Land
More Nairobi city dwellers are preferring not to buy or rent flats in the metropolitan outskirts, instead concentrating on growing satellite towns, which is causing a radical shift in buyers’ objectives and purchasing power in the real estate industry.
In the 2021 Q4 reports released on Monday, January 31, realtor Hass Consult stated that satellite town land prices continued to rise, with a 6.65 percent increase compared to a 1.1 percent reduction in 2020.
Ruaka, Kamakis, kangundo road, Ruiru, Juja, Athi River, Kiambu, Kitengela, Kiserian, Mlolongo, Ongata Rongai, Ngong, Ruaka, Ruiru, Syokimau, Thika, and Tigoni have all experienced a significant increase over seven years.
“House sale rising prices in Nairobi’s surrounding cities have been relatively modest, mainly to the fact that most people settling in such areas prefer to build their own homes.” Higher demand for detached units, whose availability has decreased in the market during the last two decades, fueled the house sale market.
“A few years ago, having an elevator in a residential building was the unusual, but now it is the rule.” The new developments are high-density units, including studio apartments, which is a departure from the ample apartments and detached houses that characterized the suburb a decade ago, and it is unclear whether the current infrastructure will be able to accommodate all of the stock coming through,” Hassanali noted.
This finding is in line with a research published by realtor Knight Frank in early 2021, which stated that homeowners were leaving the suburbs in search of greater solitude, outdoor space, and regions where they could buy for less money.
Suburbs such as Kilimani and Kileleshwa have seen an increase in apartment buildings, prompting citizens to file lawsuits against real estate companies, alleging that they are violating community by-laws.
In January 2022, the Nairobi Metropolitan Services (NMS) halted the construction of 870 bedsitter units in Kilimani by a Chinese business. Stephen Mwangi, NMS Director of Lands, Housing, and Urban Planning, declared that the 15-story structure surpassed the statutory ground coverage for leafy areas.
In its 2021 Q4 report, Hass Consult agrees that the suburbs’ lawsuits and conflicts encourage tenants and homeowners to prioritize buying land in satellite areas.
The mortgage impact is another factor driving Nairobi residents to relocate to satellite cities. A mortgage is a loan from a bank, or other financial organization that can be used to purchase a home. They are, however, offered with collateral, and the individual does not become the owner of the home until all payments are made.
“Mortgages demoralize Kenyans who want to feel like they have control over their initiatives.” Nairobi residents wish to avoid extra costs by purchasing land and building their own homes using other sources of money.
Purchasing land and constructing one’s own home provides homeowners with a sense of security.
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