The harsh economic times in the country have seen landlords in 10 estates in Nairobi slash their rental rates in the last three months according to a report by real estate firm Hass consult.

In the third quarter report released on November 9, it was noted that the most affected estates were upmarket city suburbs.

Upperhill and Westlands were among the estates that recorded the highest rent reduction with 2.4 and  2.1 per cent respectively.

Parklands – close to Westlands- recorded a drop of 1.7 per cent.

This was closely followed by Riverside where rent was averagely reduced by 1.4 per cent. Kilimani and Kitusuru saw rent rates drop by 1.3 per cent.

Estates that recorded the least dip in rental rate include Kileleshwa, Runda at  0.9 per cent, Gigiri at 0.7 per cent and Lang’ata at 0.2 per cent.

According to the report, landlords in these areas were forced to reduce rent to keep their investments running.

“Apartment prices remained relatively unchanged with a -0.3 per cent fall, signalling that sellers in the apartment market are showing more flexibility in asking prices,” read the report in part.

However, despite the drop in rent, it was noted that there was an increasing demand for detached houses and villas that are mostly found in the leafy suburbs.

“We are in a price sensitive market and owners are taking the hit to sustain sales. Despite this, projects that have excessive demand are increasing prices in line with inflation.

“These projects include townhouses and villas in higher end areas,” Head of Development Consulting and Research at HassConsult, Sakina Hassanali stated.

With respect to Nairobi satellite towns, rent in Kiambu registered a reduction rate of 4.5 per cent followed by Mlolongo at 2.1 per cent. 

Other Statelite towns that recorded a drop were Juja and Limuru.

Sourced from Kenyans

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