HOUSE PRICE INDEX

QUARTER THREE REPORT

2017

Political uncertainty stalls property market

• Overall property prices drop by 1.8 per cent while asking rents drop by 0.3 per cent with apartments accounting for the
biggest drop for both asking property prices and rents.
• Property prices fall as uncertainty following the Supreme Court ruling subdues buying activity.
• The lack of clarity on the electoral process freezes activity across all property segments as investors put on hold
decisions pending conclusion of the process.
• The property market showed a pickup in activity following the announcement of the winner in mid-August but the
decision for a repeat of the Presidential election reverses the earlier trend.
• Suburbs along the diplomatic zone buck the trend recording increases over the quarter.
• Gigiri was best performing suburb over the quarter with property prices increasing by 4.8 while Muthaiga was the top
performer on an annual basis with prices increasing by 12.5 per cent.
• Property prices in satellite towns increase marginally by 0.1 per cent over the quarter.

Property Index Highlights:

The Hass Composite Sales Index Quarter % Change Annual % Change Change From 2007

All Properties -1.8% -5.1% 2.3 Fold

Suburb with Highest Quarterly Increase in Sales Price Gigiri ( +4.8% over last quarter)

Suburb with Highest Annual Increase in Sales Price Muthaiga ( +12.5% over last year)

Suburb with Lowest Quarterly Increase in Sales Price Kileleshwa ( -4.7% over last quarter)

Suburb with Lowest Annual Increase in Sales Price Kilimani (-9.2% over last year)

The Hass Composite Rental Index Quarter % Change Annual % Change Change From 2007

All Properties -0.3% -1.8% 1.7 Fold

Suburb with Highest Quarterly Increase in Rental Price Kitisuru (+3.4% over last quarter)

Suburb with Highest Annual Increase in Rental Price Eastleigh (+8.9% over last year)

Suburb with Lowest Quarterly Increase in Rental Price Langata (-3.2% over last quarter)

Suburb with Lowest Annual Increase in Rental Price Langata (-10.0% over last year)
* The Hass Composite Indices is a measure of advertised prices, based on a 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]
 HOUSE PRICE INDEX
QUARTER THREE REPORT
2017

HassConsult today unveiled the Hass Property price indices for the third quarter of 2017, showing subdued activity as a
direct result of uncertainty in the market following the announcement of a fresh election. The aftermath of the
September 1 Supreme Court ruling is a slowdown in buying activity as there is a lack of clarity on when there will be a
conclusion to the electioneering period.

HassConsult notes that there was a spike in activity up 400 per cent in the three weeks following the announcement of
election results in mid-August as the assumption then that the electioneering period was over. However, the Supreme
Court's directive for a new election has resulted in buyers adopting a wait-and-see approach that had been taken towards
the run up to the August 8 polls.
“We saw activity pick up from mid-August as buyers who had held off on purchasing decisions came back to the market
but the current uncertainty moved sales momentum back to the pre-election period. Buyers are sensitive to risks
associated with the political process and are therefore unlikely to make decisions until there is an end to this period,” said
Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.

Overall there property prices recorded a 1.8 per cent drop over the quarter and 5.1 per cent drop on an annual
basis.Amidst the subdued market there were pockets of growth particularly in suburbs in or close to the diplomatic zone.
Investors turned to properties in the diplomatic zone or suburbs along Limuru Road where sustained demand offers a
return in a market that is slow due to the aforementioned uncertainty due to the political environment. Gigiri is the best
performing suburb up 4.8% over the quarter while Muthaiga is the top performer on an annual basis up 12.5% manly
driven by investors who see value in buying houses in the areas that serve the diplomatic corps and expatriate
community.

On the rental front asking rents dropped by 0.3 per cent. As the country's political uncertainty creates a knock on effect on
economic growth, rental hikes across the country have been minimal while falls were witnessed in many of Nairobi's main
suburbs. “A slowdown in economic activity has a direct impact on wages as firms become more aggressive on cost
management. We expect the sluggish growth in incomes has resulted in a stagnation of market rents” added Ms. Sakina
Hassanali.

For more information, please contact:

Sakina Hassanali ,Head of Development Consulting & Research

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]
 HOUSE PRICE INDEX
QUARTER THREE REPORT
2017

Sales Prices Rental Prices

Nairobi Suburbs Quarter Annual Change Quarter Annual Change

Property Index % Change % Change From 2007 % Change % Change From 2007

Donholm 1.4 % -1.2 % 3.1 FOLD -1.8 % -1.4 % 1.7 FOLD

Eastleigh 1.0 % 1.5 % 2.9 FOLD 2.7 % 8.9 % 2.9 FOLD
Gigiri 4.8 % 4.6 % 2.7 FOLD 1.7 % 0.0 % 1.9 FOLD
Karen 1.1 % 2.1 % 3.1 FOLD -0.7 % -1.2 % 1.9 FOLD
Kileleshwa -4.7 % -8.3 % 2.3 FOLD -0.9 % -3.1 % 2.0 FOLD
Kilimani -3.7 % -9.2 % 2.2 FOLD -1.8 % -0.4 % 1.7 FOLD
Kitisuru 0.4 % 4.6 % 2.8 FOLD 3.4 % -3.1 % 2.6 FOLD
Langata 4.2 % 7.6 % 3.7 FOLD -3.2 % -10.0 % 1.7 FOLD
Lavington -1.8 % -1.9 % 2.4 FOLD 1.3 % -0.1 % 2.3 FOLD
Loresho 3.2% 8.9 % 2.3 FOLD -0.2 % -1.3 % 2.4 FOLD
Muthaiga 0.1 % 12.5 % 2.1 FOLD 0.6 % -4.4 % 2.5 FOLD
Nyari -0.1 % 6.5 % 2.4 FOLD -0.2 % 0.2 % 1.7 FOLD
Parklands 0.8 % -1.6 % 2.9 FOLD 1.1 % 1.7 % 2.1 FOLD
Ridgeways -1.7 % 1.4 % 2.4 FOLD -1.6 % 2.0 % 2.1 FOLD
Runda 0.4 % 1.0 % 3.1 FOLD -0.1 % 0.2 % 1.8 FOLD
Spring Valley 0.5 % 2.6 % 2.2 FOLD -2.6 % -5.5% 1.8 FOLD
Upperhill -1.6 % -9.0 % 2.9 FOLD -1.8 % 0.4 % 3.2 FOLD
Westlands -0.2 % -1.1 % 2.5 FOLD -1.6 % -6.8 % 2.2 FOLD

Sales Prices Rental Prices

Nairobi Satellite Town Quarter Annual Change Quarter Annual Change

Property Index % Change % Change From 2007 % Change % Change From 2007

Athi River -0.7 % -1.3 % 2.4 FOLD -0.3 % -5.0 % 1.5 FOLD
Juja -0.4 % -5.7 % 2.7 FOLD 1.4 % 13.7 % 2.9 FOLD
Kiambu -0.9 % 7.4 % 2.7 FOLD 0.2 % -2.9 % 2.4 FOLD
Kiserian -0.5 % 2.9 % 2.5 FOLD 0.6 % 6.2 % 2.4 FOLD
Kitengela 1.6 % 8.1 % 2.5 FOLD 0.2 % -0.5 % 2.0 FOLD
Limuru 3.6 % 9.8 % 2.6 FOLD 2.6 % 9.9 % 2.2 FOLD
Mlolongo -0.7 % -3.3 % 1.6 FOLD -2.5 % -4.8 % 2.0 FOLD
Ngong 2.4 % 7.9 % 2.6 FOLD -0.2 % 4.8 % 2.2 FOLD
Ongata Rongai 1.8 % 5.9 % 2.6 FOLD -1.0 % -0.8 % 2.2 FOLD
Ruaka 0.4 % -2.0 % 1.9 FOLD 2.6 % 11.4 % 2.2 FOLD
Ruiru 1.7 % 4.5 % 3.1 FOLD 2.8 % 5.1 % 2.2 FOLD
Syokimau -3.3 % -4.7 % 1.8 FOLD 1.0 % -1.7 % 2.0 FOLD
Thika -1.5 % -2.4 % 1.8 FOLD -2.3 % -3.9 % 1.9 FOLD
Tigoni 2.4 % 6.7 % 2.1 FOLD 0.7 % 2.9 % 1.8 FOLD

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]
 HOUSE PRICE INDEX
QUARTER THREE REPORT
2017

SNAP SHOTS:
The Hass Sales Index • The Hass Composite Sales Index is representative of
All Property Types all properties for sale in Kenya
500
450 • Property values have increased by 4.16 times since
400 2000.
Index 2000 =100

350
300 • The index shows a property price fall of -1.8% in the
250 last quarter and a -5.1% fall in the last year.
200
150
100
50
0
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3

SNAP SHOTS:
Annual Average • The annual average is representative of the average
All Property Types price of all properties offered for sale in Kenya.
55,000
50,000 • The average value for a property has gone from 7.1
ASking Price KSH.s 1000s

45,000
40,000 million in December 2000 to 29.8 million in
35,000
30,000 September 2017.
25,000
20,000 • The average value for a 4-6 bedroom property is
15,000
10,000 currently 43.1 million.
5,000
0 • The average value for a 1-3 bedroom property is
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3

currently 13.6 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%
80% semi-detached took up 24.5% of the market and
Apartments (1-3)
70% detached houses took up 52% of the market.
60% Semi-detached (1-3)
• In September 2017 however, Apartments took up
50% Detached (1-3) 40.7% of the market, Semi-detached Houses took
40%
Apartments (4-6) up 18.7% of the market and Detached Houses took
30%
20% Semi-detached (4-6) up 40.6% of the market.
10% Detached (4-6)
0%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

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]
 HOUSE PRICE INDEX
QUARTER THREE REPORT
2017

400.00 SNAP SHOTS:

The Hass Rental Index
350.00 • The Hass Composite Letting Index is representative
All Property Types
of all properties for rental in Kenya
300.00
• Rents have increased by 3.69 fold since 2001
Index 2000 =100

250.00
• The index shows rents have increased by -0.3% in
200.00
the last quarter and have risen by -1.8% in the last
150.00
year.
100.00

50.00

0.00
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3

SNAP SHOTS:
Annual Average
• The annual average is representative of the average
All Property Types
rent of all properties offered to let in Kenya.
300
• The average rental for a property has gone from
ASking Price KSH.s 1000s

250
Kshs. 38,516 in December 2000 to Kshs. 142,043 in
200
September 2017.
150
100 • The average rent for a 4-6 bedroom property is
50 currently Kshs. 235,230
0 • The average rent for a 1-3 bedroom property is
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3

currently Kshs. 66,450

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
Mix by Year
All Property Types • The Mix by Year is a measure of the percentage that
each type of property represents in the market.
100%
• In 2001, Apartments took up 45.3% of the market,
90%
80% Semi-detached Houses took up 20.5% of the market
Apartments (1-3)
70% and Detached Houses took up 34.1% of the market.
60% Semi-detached (1-3)
• In September 2017 however, Apartments took up
50% Detached (1-3) 59.5% of the market, Semi-detached Houses took
40%
Apartments (4-6) up 12.8% of the market and Detached Houses took
30%
20% Semi-detached (4-6) up 27.7% of the market.
10% Detached (4-6)
0%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

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]