The H ass Property

INDEX
HOUSE PRICE INDEX
QUARTER FOUR REPORT
2015

Apartment rents fall as market

reacts to increased supply
• Overall, asking sales prices for residential property rose 3.6 per cent in the final quarter of 2015, maintaining the
market's upward cycle after the fall in Q4 of 2013. The sharpest rise was in asking prices for semi-detached houses, up
4.3 per cent on the previous quarter, and 18.4 per cent over the year in 2015
• Rents for all properties fell by 0.1 per cent in the final quarter of 2015, with apartments recording the highest fall of
2.3 per cent
• The fall in rents for apartments has led to the decline in rental yields in the category to 6.29 per cent by end
December 2015 compared to rental yields of 7.14 per cent recorded in the same period in 2014
• Annual house prices over 2015 rose by 11.9 per cent in Nairobi's satellite towns while rents rose by an average of 9 per
cent. Price growth was more subdued within Nairobi’s suburbs with sale prices up 8.7 per cent and rents up 5.8 per cent
on a year earlier. The sluggish upward rent movement in Nairobi’s suburbs over the year was attributed to an apartment
oversupply leading to a rent price correction in the segment

Property Index Highlights:

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

All Properties 3.6% 9.6% 2.17 Fold

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

Suburb with Highest Annual Increase in Sales Price Athi River ( +18.8% over last year)

Suburb with Lowest Quarterly Increase in Sales Price Parklands ( -2.4% over last quarter)

Suburb with Lowest Annual Increase in Sales Price Tigoni (+0.9% over last year)

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

All Properties -0.1% 5.4% 1.71 Fold

Suburb with Highest Quarterly Increase in Rental Price Ngong (+4.6% over last quarter)

Suburb with Highest Annual Increase in Rental Price Mlolongo (+17.7% over last year)

Suburb with Lowest Quarterly Increase in Rental Price Ridgeways (-2.8% over last quarter)

Suburb with Lowest Annual Increase in Rental Price Parklands (-0.3% 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]
 The H ass Property

INDEX
HOUSE PRICE INDEX
QUARTER FOUR REPORT
2015

HassConsult today unveiled property price trends for the fourth quarter of 2015, showing an upward growth in
property prices and a drop in asking rents in the last three months of the year
The fall in rents was driven by a 2.3 per cent drop in asking rental prices for apartments.
“Developers are under pressure from the increased scarcity and surge in land prices to maximize land usage
hence a majority prefer to construct high density apartments. This has led to an increased supply of apartments
over the last five years,” said Ms. Sakina Hassanali, Head of Research and Marketing at HassConsult.
There are almost five times more apartments in the market than town houses and maisonettes combined. “In
December 2015 alone, apartments took up 59.6 per cent of the rental market,” explained Ms. Hassanali.
The drop in rent prices for apartments has also led to the decline in rental yields to 6.29 per cent as at December
2015 compared to rental yields of 7.14 per cent recorded in the same period in 2014.
“Total returns (rental yields + price growth) were highest on let semi-detached houses, at 26.11 per cent for the
year to December 2015. Total returns in let apartments dropped from 23.99 per cent in August 2015 to 20.34
per cent for the year ending December 2015,” said Ms. Hassanali.
Upper Hill however, appears to have bucked the trend with sale and rental prices tripling in the last 8 years and
rental yields highest at 7.8 per cent. The increased demand for office space and the subsequent growth of
Upper Hill as a business hub has led to high demand for apartments in the suburb.
At the same time, house prices in Nairobi's satellite towns rose by 11.9 per cent in 2015 while rents rose by an
average of 9 per cent as landlords adjusted prices to cater for increased demand. “Asking rent prices have rose
more than two-fold since 2007 in Kiserian, Juja, Kiambu and Mlolongo as rental prices in Nairobi's suburbs get
out of reach for a majority of tenants,” said Ms. Hassanali.

For more information, please contact:

Sakina Hassanali

Head of Research & Marketing

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
HOUSE PRICE INDEX
QUARTER FOUR REPORT
2015

Sales Prices Rental Prices

Nairobi Suburbs Quarter Annual Change Quarter Annual Change

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

Donholm 1.0 % 3.7 % 3.23 FOLD 1.2 % 8.8 % 1.76 FOLD

Eastleigh 0.7 % 13.0 % 2.91 FOLD 1.7 % 7.7 % 2.54 FOLD
Gigiri 4.2 % 11.3 % 2.36 FOLD -0.7 % 0.4 % 1.84 FOLD
Karen 3.7 % 17.3 % 2.72 FOLD 2.2 % 6.0 % 1.73 FOLD
Kileleshwa 1.2 % 9.9 % 2.36 FOLD 2.7 % 7.5 % 2.11 FOLD
Kilimani 1.4 % 3.3 % 2.53 FOLD 0.6 % 2.4 % 1.69 FOLD
Kitisuru -0.2 % 4.2 % 2.38 FOLD 1.3 % 5.5 % 2.59 FOLD
Langata 4.8 % 12.8 % 3.11 FOLD -1.8 % 0.0 % 1.71 FOLD
Lavington 1.7 % 10.2 % 2.27 FOLD 1.8 % 10.4 % 2.22 FOLD
Loresho 1.8% 12.8 % 1.97 FOLD 2.3 % 5.3 % 2.34 FOLD
Muthaiga 0.7 % 8.0 % 1.70 FOLD 0.7 % 5.6 % 2.53 FOLD
Nyari 2.5 % 6.6 % 2.04 FOLD -0.4 % 2.7 % 1.69 FOLD
Parklands -2.4 % 5.9 % 2.69 FOLD -0.6 % -0.3 % 2.02 FOLD
Ridgeways 1.2 % 9.5 % 2.32 FOLD -2.8 % 3.0 % 1.97 FOLD
Runda 1.0 % 1.5 % 2.79 FOLD -1.6 % 1.2 % 1.70 FOLD
Spring Valley 1.5 % 9.7 % 2.00 FOLD 0.9 % 2.7 % 1.76 FOLD
Upperhill 1.2 % 9.7 % 3.06 FOLD 0.2 % 5.9 % 3.12 FOLD
Westlands 0.8 % 7.5 % 2.47 FOLD -0.8 % 3.0 % 2.35 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 4.0 % 18.8 % 2.18 FOLD 0.2 % 10.0 % 1.52 FOLD
Juja 1.0 % 8.7 % 2.60 FOLD 1.2 % 9.5 % 2.32 FOLD
Kiambu 2.7 % 13.7 % 2.47 FOLD 1.2 % 14.4% 2.22 FOLD
Kiserian 1.8 % 12.3 % 2.36 FOLD -0.6 % 8.8 % 2.34 FOLD
Kitengela 2.6 % 8.3 % 2.17 FOLD -1.2 % 9.9 % 1.91 FOLD
Limuru 0.7 % 11.1 % 2.20 FOLD 2.8 % 8.5 % 1.85 FOLD
Mlolongo 2.2 % 6.3 % 1.63 FOLD -0.1 % 17.7 % 2.10 FOLD
Ngong 1.7 % 8.5 % 2.09 FOLD 4.6 % 15.5 % 2.02 FOLD
Ongata Rongai 2.5 % 8.3 % 2.26 FOLD 2.1 % 10.0 % 2.06 FOLD
Ruaka 0.5 % 2.0 % 1.81 FOLD -0.4 % 6.3 % 1.87 FOLD
Ruiru 2.1 % 9.3 % 2.66 FOLD 3.3 % 11.2 % 1.77 FOLD
Syokimau 0.5 % 5.7 % 1.91 FOLD -0.9 % 11.7 % 2.04 FOLD
Thika 1.2 % 6.4 % 1.91 FOLD -1.3 % 1.4 % 1.93 FOLD
Tigoni 1.0 % 0.9 % 1.87 FOLD 1.0 % 6.3 % 1.80 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]
 The H ass Property

INDEX
HOUSE PRICE INDEX
QUARTER FOUR REPORT
2015

SNAP SHOTS:
The Hass Sales Index • The Hass Composite Sales Index is representative of
All Property Types all properties for sale in Kenya
450
400 • Property values have increased by 4.00 times since
350 2000.
Index 2000 =100

300
• The index shows a property price rise 3.6% in the
250
200 last quarter and a 9.6% rise in the last year.
150
100
50
0
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
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4

SNAP SHOTS:
Annual Average • The annual average is representative of the average
All Property Types price of all properties offered for sale in Kenya.
50,000
45,000 • The average value for a property has gone from 7.1
ASking Price KSH.s 1000s

40,000 million in December 2000 to 28.7 million in

35,000
30,000 December 2015.
25,000
20,000 • The average value for a 4-6 bedroom property is
15,000
10,000 currently 43.7 million.
5,000
0 • The average value for a 1-3 bedroom property is
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
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4

currently 13.4 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 2000, apartments took up 23.5% of the market,
90%
semi-detached took up 24.5% of the market and
80% Apartments (1-3 Bed)

70% detached houses took up 52% of the market.

Semi-detached (1-3 Bed)

60% • In December 2015 however, Apartments took up

Detached (1-3 Bed)
50%
41.1% of the market, Semi-detached Houses took
40% Apartments (4-6 Bed)
up 17.2% of the market and Detached Houses took
30% Semi-detached (4-6 Bed)
20% up 41.7% of the market.
Detached (4-6 Bed)
10%
0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

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
HOUSE PRICE INDEX
QUARTER FOUR REPORT
2015

SNAP SHOTS:
The Hass Rental Index • The Hass Composite Letting Index is representative
All Property Types of all properties for rental in Kenya
400.00
350.00
• Rents have increased by 3.62 times since 2000
300.00 • The index shows rents have fallen 0.1% in the last
Index 2000 =100

250.00 quarter but have risen by 5.4% in the last year.

200.00
150.00
100.00
50.00
0.00
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
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4

SNAP SHOTS:
Annual Average • The annual average is representative of the average
All Property Types rent of all properties offered to let in Kenya.
250
• The average rental for a property has gone from
ASking Price KSH.s 1000s

200
Kshs. 38,516 in December 2000 to Kshs. 139,354 in
150 December 2015.
100 • The average rent for a 4-6 bedroom property is
50 currently Kshs. 235,668
0 • The average rent for a 1-3 bedroom property is
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
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4

currently Kshs. 71,748

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 2000, Apartments took up 45.3% of the market,
90%
80% Apartments (1-3 Bed)
Semi-detached Houses took up 20.5% of the market
70% and Detached Houses took up 34.1% of the market.
Semi-detached (1-3 Bed)
60% • In December 2015 however, Apartments took up
Detached (1-3 Bed)
50%
59.6% of the market, Semi-detached Houses took
40% Apartments (4-6 Bed)

30%
up 13.1% of the market and Detached Houses took
Semi-detached (4-6 Bed)
20% up 27.3% of the market.
Detached (4-6 Bed)
10%
0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

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]