A significant shortage of standalone houses drove property sales prices in Nairobi to their fastest growth in 18 months during the second quarter of 2025, even as the rental market contracted under economic pressure.
According to the HassConsult House Price Index for Q2 2025, overall property prices rose by 3.75 percent, a sharp increase from the 2.45 percent growth seen in the previous quarter. The surge was overwhelmingly led by detached houses (villas and townhouses), which saw prices climb by an impressive 5.0 percent due to high demand and limited supply. In contrast, apartments and semi-detached homes recorded modest price gains of just 1.1 percent and 1.3 percent, respectively.
“Detached house prices grew at their fastest quarterly pace in nine years, which also reflected in suburbs such as Muthaiga, Karen, and Runda—that are largely exclusive of apartments—reporting faster property price growth,” said Sakina Hassanali, Co-CEO at HassConsult. “There is a general lack of supply of detached houses, leading to the increased prices.”
The top-performing suburbs for house sales were Muthaiga (+3.5 percent), Karen (+2.5 percent), and Runda (+2.2 percent).
In sharp contrast to the booming sales market, rental prices across Nairobi fell by a marginal 0.2 percent. The report attributes this to a price-sensitive market where landlords are choosing to keep rents stable to retain tenants amid a tough economic climate.
“Landlords are increasingly forced to forego an increase in rent prices in order to protect occupancy,” Ms. Hassanali noted.
This has created a two-track market where the sales segment, particularly for high-end homes, is thriving, while the rental sector remains cautious. The improved annual property price growth of 7.8 percent is also making real estate a more competitive investment compared to other asset classes like government Treasury bills, whose interest rates have recently fallen.