The H ass Property

INDEX

QUARTER TWO REPORT

2012

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected]
 The H ass Property

INDEX
QUARTER TWO REPORT
2012

Rents now rising at ten times

the rate of last two years
• House prices remained resilient, despite the high mortgage rates, with asking prices up 1.3 per cent on previous quarter
• Closing prices across all houses rose by 0.5 per cent
• The strongest house price gains came from stand alone houses, where asking prices rose by a significant 2.9 per cent,
reversing the price falls of last year
• Town houses continued to track upwards steadily on asking prices, up 1.1 per cent on March prices, and 6.8 per cent on
a year earlier
• Asking rents are now climbing rapidly, at ten times the rate during 2010 and 2011
• Asking rents across all properties were almost flat from September 2009 to September 2011, rising just 1.5 per cent
over the two years
• In the nine months since September last year, asking rents across all properties have risen by 7.9 per cent, with 6.6 per
cent of that increase in the first half of 2012
• The rental rises have been sharpest for apartments, up 10.33 per cent in the nine months since September last year

Index Highlights:

SALES AND LETTINGS COMPOSITE INDEX YEAR TO Q2 The Hass Sales Composite Index The Hass Lettings Composite Index

320.0 270.0

260.0
Index Index
2001 = 2001 =
100
310.0 100
250.0

240.0

300.0 230.0
2012 Q1

2012 Q2

2012 Q1

2012 Q2
2011 Q2

2011 Q3

2011 Q4

2011 Q2

2011 Q3

2011 Q4

HEADLINES - HASS COMPOSITE SALES INDEX % Change in Quarter % Change in Year

All Properties 1.3% 0.9%

Stand Alone Houses 2.7% 1.9%
Townhouses 1.1% 6.8%
Apartments 0.5% 3.0%
* The Hass Composite Sales Index is a measure of asking sales prices, based on Mix Adjusted Methodology

HEADLINES - HASS COMPOSITE LETTINGS INDEX % Change in Quarter % Change in Year

All Properties 2.2 % 7.7 %
Stand Alone Houses 2.3 % 8.3%
Townhouses 2.9 % 4.1 %
Apartments 2.4 % 11.7%
* The Hass Composite Lettings Index is a measure of asking sales prices, based on Mix Adjusted Methodology

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected]
 The H ass Property

INDEX
QUARTER TWO REPORT
2012

HassConsult today announces the results for the second quarter 2012 of its house price and rentals indices, revealing
ongoing hikes in rentals against a backdrop of stable house prices.
The rise in asking rentals is now running at 10 times the rate during 2010 and 2011, when rents were close to static. From
September 2009 to September 2011, the asking prices for rents rose by just 1.5 per cent in total.
However, rising property costs, inflation and - seemingly instrumentally - interest rates, have led to a sharp take-off in
rents, now sustained for three successive quarters.
Since the end of September last year asking rents across all property types have risen by 7.9 per cent, with 6.6 per cent of
that increase falling in the first half of 2012.
The sharpest rises are happening in apartment rents, which have risen 10.33 per cent since the climb in rents began at the
end of September last year, and 8.1 per cent since the beginning of 2012.
“This surge in rental prices comes as landlords cover higher finance and other costs, and at a time when there is an
increased volume of people seeking the same pool of rental properties, as potential homeowners hold off from
purchasing,” said Ms Farhana Hassanali-Hashmani, Property Development Manager at HassConsult.
“It is a rise that starkly brings home the immediate impact on all Kenyans of the bottleneck caused in building and buying
by pushing finance out of reach for many developers and mortgaged homeowners,” she said.
Against this backdrop, Hass welcomed wholeheartedly the first move by the CBK to bring down interest rates, with the
cut in the base rate last week from 18 per cent to 16.5 per cent. “The prevailing monetary policy has represented a
'closedown' for home developers in a country where we are severely short of good homes,” said Ms Hassanali-Hashmani.
However, following the decision to cut the frequency of meetings for the Monetary Policy Committee that sets interest
rates, to once every two months, HassConsult urged the committee to work as rapidly as possible to bring interest rates
down to a more normal and viable level by global standards.
“The hope of attracting foreign funds through top-end rates cannot be ignored, but the impact on ordinary Kenyans of
hobbling the real estate industry and creating new rent surges must be considered too in the CBK's efforts to maintain
exchange rates at their current levels.”
Also reporting on house prices, HassConsult revealed ongoing stability and even some small gains, with overall closure
prices across all types of property rising by 0.5 per cent in the last three months, while asking prices rose by 1.3 per cent.
Within this overall figure came some first signs of substantial price growth in standalone houses, where asking prices
have risen by 2.7 per cent in the 12 weeks since the end of March, reversing earlier price falls.
Town houses also continued to record gains in asking prices, by another 1.1 per cent in the last three months, to make for
an annual increase of 6.8 per cent – the strongest in any segment in the last year.
“With interest rates now down and expected to fall further, and much building shelved, we now forecast greater trends
towards house price growth, which are likely to set in for some time before we see any relief in the current rate of rent
rises,” said Ms Hassanali-Hashmani.

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected]
 The H ass Property

INDEX
QUARTER TWO REPORT
2012

SNAP SHOTS:
The Hass Composite Sales Index
All Property Types • The Hass Composite sales Index is representative of
all property for sale in Kenya
400
• Property values have increased by 3.14 times since
350
2000
Index 2000 =100

300
250 • The index shows a property price rise of 1.3% in the
200 last quarter and a 0.9% rise in the last year
150
100
50
0
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

SNAP SHOTS:
Annual Average
• The annual average is representative of the average
All Property Types
price of all properties offered for sale in Kenya
35,000
• The average value for a property has gone from 7.1
ASking Price KSH.s 1000s

30,000
25,000 million in December 2000 to 22.5 million in June
20,000 2012
15,000
10,000 • The average value for a 4-6 bedroom property is
5,000 currently 31.4 million
0
• The average value for a 1-3 bedroom property is
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

currently 11.1 million

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
Mix by Year • The Mix by Year is a measure of the percentage that
All Property Types each type of property represents in the market.
100% • In 2001, apartments took up 23.5% of the market,
90%
Apartments (4-6 Bed)
Town Houses took up 24.5% of the market and
80%
70% Stand alone houses took up 52% of the market.
Apartments (1-3 Bed)
60%
• In 2012 however, apartments took up 43.6% of the
50% Town Houses (4-6 Bed)

40% market, Town Houses took up 26.9% of the market

Town Houses (1-3 Bed)
30% and Stand alone houses took up 29.5% of the
20% Stand Alone Houses (4-6 Bed)
market
10%
Stand Alone Houses (1-3 Bed)
0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

Breakdown of 10 years data by Year

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected]
 The H ass Property

INDEX
QUARTER TWO REPORT
2012

The Hass Composite Sales Index Annual Average Annual % Change

Stand Alone Houses Stand Alone Houses Stand Alone Houses
50%
400 45,000 40%

ASking Price KSH.s 1000s

350 40,000
35,000 30%
Index 2000 =100

300 30,000
250 25,000 20%
20,000
200 15,000 10%
150 10,000 0%
5,000
100 0 -10%
50

2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
0 -20%

2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.
• Property values for stand alone houses have increased by 3.7 times since 2001, a 2.7% rise in the last quarter and a 1.9 rise in
the last year. The average price for a stand alone house is currently 32.6 million up from 8.8 million in December 2000

The Hass Composite Sales Index Annual Average Annual % Change

Town Houses Town Houses Town Houses
50%
400
25,000 40%
350
300 20,000 30%
250 15,000 20%
200 10,000 10%
150 5,000 0%
100
0 -10%
50
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

0 -20%
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

SNAP SHOTS:
• Town houses include townhouses and maisonettes that are semi-detached or terraced.
• Property values for town houses have increased by 2.9 times since 2001, a 1.1% rise in the last quarter and a 6.8% rise in the
last year. The average price for a town house is currently 19.1 million up from 6.5 million in December 2000.

Annual Average
The Hass Composite Sales Index Annual % Change
Apartments
Apartments Apartments
50%
400 18,000
ASking Price KSH.s 1000s

16,000 40%
350
14,000 30%
300 12,000
Index 2000 =100

250 10,000 20%

8,000
200 6,000 10%
150 4,000
2,000 0%
100 0
-10%
50
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

0 -20%
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Apartments include apartments, duplexes and triplexes.
• Property values for apartments have increased by 2.2 times since 2001, a 0.5% rise in the last quarter and a 3.0% rise in the
last year. The average price for an apartment is currently 11.7 million up from 5.2 million in December 2000.

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected]
 The H ass Property

INDEX
QUARTER TWO REPORT
2012

SNAP SHOTS:
The Hass Composite Lettings Index
All Property Types • The Hass Composite Letting Index is representative
of all property for rental in Kenya
400
350
• Rents have increased by 2.6 times since 2001
Index 2000 =100

300 • The index shows rents have risen by 2.2% in the last
250 quarter but have risen by 7.7% in the last year
200
150
100
50
0
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

SNAP SHOTS:
Annual Average
• The annual average is representative of the average
All Property Types
rent of all properties offered to let in Kenya.
160 • The average rental for a property has gone from
ASking Price KSH.s 1000s

140
120 Kshs. 38,516 in December 2000 to Kshs. 102,044 in
100 June 2012.
80
60 • The average rent for a 4-6 bedroom property is
40
20 currently Kshs. 148,998
0
• The average rent for a 1-3 bedroom property is
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

currently Kshs. 60,122

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
Mix by Year
! The Mix by Year is a measure of the percentage that
All Property Types
each type of property represents in the market.
100% ! In 2001, apartments took up 45.3% of the market,
90% Town Houses took up 20.5% of the market and
Apartments (4-6 Bed)
80%
70% Stand alone houses took up 34.1% of the market.
Apartments (1-3 Bed)
60% ! In 2012 however, apartments took up 56.3% of the
50% Town Houses (4-6 Bed)

40% market, Town Houses took up 19.6% of the market

Town Houses (1-3 Bed)
30% and Stand alone houses took up 24.1% of the
20% Stand Alone Houses (4-6 Bed)
market
10%
Stand Alone Houses (1-3 Bed)
0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected]
 The H ass Property

INDEX
QUARTER TWO REPORT
2012

The Hass Composite Lettings Index Annual Average Annual % Change

Stand Alone Houses Stand Alone Houses Stand Alone Houses
50%
400 250 40%

ASking Price KSH.s 1000s

350 200 30%
Index 2000 =100

300
150 20%
250
200 100 10%
150 50 0%
100 0 -10%
50

2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
-20%
0

2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.
• Rental values for stand alone houses have increased by 2.7 times since 2001, a 2.3% rise in the last quarter and a 8.3% rise in
the last year. The average rental for a stand alone house is currently Kshs. 156,396 up from Kshs. 56,959 in December 2000.

The Hass Composite Lettings Index Annual Average Annual % Change

Town Houses Town Houses Town Houses
50%
400 140 40%
ASking Price KSH.s 1000s

350 120
100 30%
Index 2000 =100

300
250 80 20%
60
200 10%
40
150 0%
20
100 0 -10%
50
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

-20%
0
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Town houses include townhouses and maisonettes that are semi-detached or terraced.
• Rental values for town houses have increased by 2.3 times since 2001, a 2.9% rise in the last quarter and a 4.1% rise in the last
year. The average rental for a town house is currently Kshs. 99,288 up from Kshs. 42,688 in December 2000.

The Hass Composite Lettings Index Annual Average Annual % Change

Apartments Apartments Apartments
50%
400 120 40%
ASking Price KSH.s 1000s

350 100
30%
Index 2000 =100

300 80
250 20%
60
200 40 10%
150 20 0%
100 0 -10%
50
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

-20%
0
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2001 Q4
2002 Q2
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Apartments include apartments, duplexes and triplexes.
• Rental values for apartments have increased by 2.8 times since 2001, 2.4% rise in the last quarter and an 11.7% rise in the last
year. The average rent for an apartment is currently Kshs. 64,295 up from Kshs. 21,638 in December 2000.

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: [email protected]