Investors and Nairobi residents are choosing Loresho as their next investment area, moving away from Spring Valley.
According to the Hass Consult land index report dated Wednesday, February 1, Loresho was the best-performing suburb between September and December 2022. Due to increased demand, land increase by 3.2%.
The average value of land per acre in Loresho is Ksh95 million. Despite the area being priced higher than the satellite towns such as Syokimau, HassConsult indicated that prospective buyers were picking Loresho.The demand for land in Loresho peaked among buyers due to its proximity to Westlands.
According to HassConsult, Loresho is surrounded by neighbourhoods with quiet and serene environments and has quick access to Westlands due to well tarmacked and maintained road networks.
Other factors included services for shopping, recreation facilities, and social amenities such as hospitals and water facilities.
Security in Loresho and its surrounding neighbourhoods also contributed to the sharp increase in land.
“Investors with insufficient funds to afford Spring Valley at Ksh220 million per acre are absorbed by Loresho’s lower
priced price of Ksh95.5 million per acre,” HassConsult report read in part.
Controlled development policies also drove Kenyans to purchase property in Loresho.
Sakina Hassanali, Head of Development Consulting and Research at HassConsult, noted that the trend presented a window of opportunity for prospective buyers who want to live close to a high-end commercial hub.
Besides infrastructure, experts argued that a Ksh1 million investment in a piece of land in Loresho would yield close to Ksh6.39 million.
“Land values have increased by 10.47 fold since December 2007,” Sakina indicated.
The report indicated that Loresho’s increase in land prices and demand between September and December beat other suburbs such as Donholm, Gigiri, Karen, Kileleshwa, Kilimani, and Kitisuru.
Other suburb areas which recorded a slight increase in land prices include Lavington, Muthaiga, Nyari, Parklands, Riverside, Runda, and UpperHill.
However, land prices in Nairobi satellite towns remained static due to economic downtime.
“Limuru is currently less developed than other towns in Kiambu county and as a result is being seen as the next development frontier, offering uniquely green experiences that characterise the area,” Sakina observed.
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