|Upmarket house prices falling-survey|
|Written by Timothy Munuku for The Star Friday 2nd October 2009|
The average property price in Nairobi’s upmarket suburbs shot up by 29 % from an average of Sh15.7 million in 2006 to Sh20.2 million last year, a new property index shows.
However, home buyers can breath a sigh of relief as the index reveals prices are slowly falling after a two-year boom which began in 2007 and continued throughout 2008 and into the first quarter of this year with a further drop of 2.2 % in the third quarter bringing down property prices to an average of Sh19.9 million in the third quarter from Sh20.4 million in the second quarter.
The index gives the price trends across houses, villas, and apartments in the city’s upmarket suburb of Karen, Kileleshwa, Kilimani, Lavington, Nyari, Riverside and Westlands.
Majority of the house price information used for the index was derived from HassConsult sold data, which indicates houses sold at true prices. Other sources in the public domain and drawn from 13 other estate agencies in Nairobi and the property Leo database were used to support the HassConsult position.
The firm said the new index is expected to bring transparency in the real estate market by enabling investors to judge the price trends and make informed estimations of their returns of investment.
“The best decisions are made with the clearest possible information and it is by working to aflag what is rising and what is falling to ensure funds are directed towards the properties that will produce the best returns” said Jenny Luesby a consultant for HassConsult.