The Nairobi real estate market is witnessing renewed momentum in 2026, according to HassConsult’s Q4 2025 report. The consultancy reveals that house prices in Nairobi Metropolitan surged 7.7% in 2025, up from 5.2% in 2024, while average rental costs declined by 2.5%, easing the financial burden on tenants.
This report highlights a growing demand for standalone homes, particularly in Nairobi satellite towns such as Ruiru, Juja, and Syokimau, where land and property prices continue to trend upward.
Rising House Prices Across Nairobi and Surrounding Areas
The Nairobi real estate market recorded its fastest annual growth in house prices since 2015, driven by high demand for detached homes and a slowdown in land price appreciation.
By December 2025:
- Average house price in Nairobi: KSh 39.6 million
- Apartments with 4–6 bedrooms: KSh 45.1 million
- Properties with 1–3 bedrooms: KSh 12.8 million
In satellite towns, growth remained strong, with Juja leading at 12.2% annual increase, although Kiambu, Ngong, and Kiserian saw modest declines in the final quarter. Developers have cut back on plots for flats following oversupply, pushing standalone home prices higher.
Property type growth rates (2025):
- Detached homes: 9.5%
- Semi-detached homes: 5.2%
- Apartments: 2%
Land Prices in Satellite and Prime Areas
Land prices continue to rise across the Nairobi Metropolitan region:
- Satellite towns (Ruaka, Syokimau, Juja): 6.21% increase per acre, averaging KSh 32.9 million, lower than the 10.62% growth in 2024.
- Prime suburbs (Muthaiga, Langata, Lavington): 5.92% increase per acre, averaging KSh 226.8 million, slightly below the 6.8% growth recorded in 2024.
The increase in land values is fueled by a growing middle class, rising economic activity, and continued demand exceeding supply.
Rental Market Trends
While house prices surged, rental costs eased by 2.5% in 2025, the first notable decline after years of stability. Quarterly figures show a 0.9% fall in Q4, with rentals softening at the coast and in other major cities. This trend provides relief for tenants facing pressure from stagnant disposable incomes.
Kenya Tops Global Property Returns
The Hass Index Special Report highlights that Kenyan real estate outperformed major economies in investment returns in FY 2025, surpassing the US, UK, Canada, and South Africa. This positions Kenya as one of the most profitable markets globally, making Nairobi and its satellite towns attractive for local and foreign investors.
The Nairobi real estate market continues to demonstrate resilience and strong growth, supported by rising house prices, moderate rental declines, and sustained demand in both central Nairobi and satellite towns. With a growing middle class, steady economic activity, and attractive investment returns, Nairobi remains the top destination for property investors in Kenya in 2026.
