|Residential house prices falling|
|Written by Winfred Kagwe for The Daily Nation Friday 2nd October 2009|
|Thursday, 15 October 2009 11:20|
Prices of upper and middle income houses in Nairobi are falling after consistently rising in the last two years, this according to a property index issued by real estate agents, HassConsult.
The trend has been attribute to a high supply of houses in the market.
The prices of residential property reduced by 1.4 % and 2.2 % in the second and third quarter of 2009 respectively, compared to 2007 and 2008 when every quarter saw a 4 % or more increase.
Between 2007 and 2008 the overall prices went p by 30%.
In the recent months, despite the demand for housing, the financial strains on middle and upper income buyers have shown, bringing a slow down in the market where so many new residential developments have come up.
This, however, gives a small picture of the overall trends in the property market as it only included actual residential places that could not be developed further in up-market suburbs.
“This particular index is targeted purely at price changes in urban houses, villas and apartments where the only element driving the price is competition for that property”, said Hamida Hassanali, director HassConsult.
This is Nairobi’s first property price index, which the company will release every three months.