Editor's Review

Land prices in Nairobi suburbs and satellite towns continued to gather momentum in the second quarter of 2026, following increased demand for areas with economic activity and infrastructural development.

Land prices in Nairobi suburbs and satellite towns continued to gather momentum in the second quarter of 2026, following increased demand for areas with economic activity and infrastructural development.

According to the 2026 Q2 HassConsult Land Price Index report released on Tuesday, August 4, land prices per acre in Nairobi suburbs grew by 1.4 per cent.

This was largely driven by renewed developer optimism following the publication of the Nairobi City County Development Control Policy 2026, which provided greater clarity on planning approvals.

On the other hand, land prices in the 14 satellite towns recorded a growth of 1.4 per cent owing to buyers’ preference for locations with major infrastructure projects, employment centres, and expanding commercial activity.

Nairobi suburbs

Among the suburbs, Lang'ata recorded the highest growth, with land prices rising 4.1 per cent to an average of Ksh94.7 million per acre.

Karen came in second after land prices increased by 3.2 per cent, bringing the average price per acre to Ksh79.5 million.

Runda posted a 2.9 per cent increase during the quarter, with an acre now averaging Ksh105.6 million. Meanwhile, Nyari recorded a 2.5 per cent quarterly increase, with land prices averaging Ksh128.2 million per acre.

Lastly, Riverside posted a 2.1 per cent increase in land prices, with an acre averaging Ksh382.3 million at the end of Q2.

"The rebound also indicates that demand remains strongest within the price points that support detached and semi-detached residential development, lifting values in comparatively lower-priced suburbs," read the report in part.

"Karen and Langata recorded their strongest quarterly price growth in a decade as demand increasingly shifted towards suburbs offering relatively lower land acquisition costs for both residential developers and individuals building their own homes," Sakina Hassanali, the HassConsult Co-CEO, expounded.

File image of a raw land in Lang'ata

On the flip side, Muthangari recorded the biggest decline among Nairobi's suburbs during the quarter, with land prices dropping by 2.1 per cent to an average of Ksh378.4 million per acre.

In Muthaiga, the price of an acre dropped by 0.9 per cent to Ksh230.1 million.

Gigiri was the last suburb to record a decline during the period, with land prices falling by 0.7 per cent to an average of Ksh261.1 million per acre.

Satellite towns

Among the satellite towns, Ruiru emerged as the best-performing satellite town during the quarter after land prices rose by 4.1 per cent, bringing the average price per acre to Ksh42.2 million.

Thika ranked second, with land prices increasing by 3.8 per cent to an average of Ksh32.4 million per acre.

"Ruiru sits at the centre of large mixed-use developments such as Tatu City and Northlands, which have pulled in workers for industrial and commercial installations, thus providing demand for housing that is boosting the land market.

"Thika's imminent elevation to city status is also contributing to the higher price of land in the area as it prepares for the increased investment that comes with the status. For Ruaka, the completion of the Nairobi Western Bypass and its position on the edge of the UN Blue Zone has created demand for new residential houses, attracting developers to the area," read the report in part.

Ruaka came in third, posting a 2.8 per cent quarterly increase in land prices. An acre now costs an average of Ksh115.7 million.

Meanwhile, land prices in Ongata Rongai grew by 1.7 per cent, with the average price per acre reported at Ksh29.9 million.

Lastly, Mlolongo’s land prices per acre recorded a 1.2 per cent increase, with the average price per acre now standing at Ksh47.6 million.

Conversely, Ngong recorded the biggest drop in land prices during the second quarter of 2026, with prices falling 2.5 per cent to an average of Ksh34.8 million per acre.

Limuru followed with a 0.8 per cent decline, leaving the average price of an acre at Ksh27.2 million.

Kiambu ranked third after land prices slipped 0.6 per cent, bringing the average price per acre to Ksh48.6 million.

Syokimau was fourth, recording a 0.3 per cent decline in land prices during the quarter, with an acre averaging Ksh39.4 million.

Tigoni also posted a 0.3 per cent decline, with the average price per acre dropping to Ksh34.8 million.