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HOUSE PRICE INDEX

QUARTER TWO REPORT


2017

Discerning investors still gain despite


tough economic conditions
• Interest in rental properties continues to grow despite the dip in property prices
• Apartments now account for more than half of all properties in the rental market and 40.1 per cent of all properties that
are for sale on the market
• One to three-bedroom apartments account for 55.9 per cent of properties in the rental market
• Interest on one to three-bedroom apartments due to a higher potential to unlock value
• Investors look for rental yields as capital gains slow down
• Overall property market cools as it feels the effect of the tough macroeconomic environment influenced by the
upcoming general elections

Property Index Highlights:

The Hass Composite Sales Index Quarter % Change Annual % Change Change From 2007

All Properties -3.1% -2.2% 2.30 Fold

Suburb with Highest Quarterly Increase in Sales Price Eastleigh ( +2.0% over last quarter)

Suburb with Highest Annual Increase in Sales Price Muthaiga ( +16.4% over last year)

Suburb with Lowest Quarterly Increase in Sales Price Upperhill and Kileleshwa ( -2.8% over last quarter)

Suburb with Lowest Annual Increase in Sales Price Upperhill (-5.9% over last year)

The Hass Composite Rental Index Quarter % Change Annual % Change Change From 2007

All Properties -2.0% -0.7% 1.75 Fold

Suburb with Highest Quarterly Increase in Rental Price Eastleighs (+4.1% over last quarter)

Suburb with Highest Annual Increase in Rental Price Eastleigh (+8.1% over last year)

Suburb with Lowest Quarterly Increase in Rental Price Langata (-5.9% over last quarter)

Suburb with Lowest Annual Increase in Rental Price Kitisuru (-7.3% over last year)
* The Hass Composite Indices is a measure of advertised prices, based on a Mix Adjusted Methodology

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
HOUSE PRICE INDEX
QUARTER TWO REPORT
2017

HassConsult today unveiled the Hass Property price indices for the second quarter of 2017, showing increased interest in
rental yields by investors as capital gains become harder to achieve. Investors are giving rental yields a greater
consideration as the marginal house price increases over the last few years, have reduced the opportunities to flip
properties and reap large capital gains.

The supply of one to three-bedroom apartments in the letting market is indicative that investors are looking for passive
and regular income as opposed to capital gains that are made when exiting an investment.

“The opportunities to buy properties and then sell them at a handsome return are becoming thinner as prices have
become static over the last few years. This realisation is making buyers opt for properties that can provide constant and
assured income even as rents stabalise,” said said Ms Sakina Hassanali, Development Consulting and Research at
HassConsult.

Apartments that are between one and three-bedroom account for 55.9 per cent of properties that are on the rental
market and 36.3 per cent of the sales market as more units come to the market despite the prevailing market conditions
that have affected the rental market, shrewd investment now requires an in-depth understanding of market gaps and
potential. The Hass Composite Letting Index recorded a 2.0 per cent drop in the second quarter, primarily driven by a 4.1
per cent fall in asking prices in apartments even as focus shifts to rents over capital gains.

“The tough economic environment that is having an effect on incomes is making it difficult to raise rents but even in this
situation, interest in these properties has not waned as investors prefer certain and stabilised returns. Additionally other
asset classes are performing poorly,” said Ms. Hassanali.

On the sales front there was a 3.1 per cent drop over the quarter with detached houses recording the biggest quarterly
drop at 4 per cent. Apartments on the other hand recorded a 0.5 per cent increase in asking prices over the year despite
the 1.4 per cent quarterly drop.

For more information, please contact:

Sakina Hassanali, Head of Development Consulting & Research, HassConsult.

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
HOUSE PRICE INDEX
QUARTER TWO REPORT
2017

Sales Prices Rental Prices

Nairobi Suburbs Quarter Annual Change Quarter Annual Change


Property Index % Change % Change From 2007 % Change % Change From 2007

Donholm 0.0 % -3.1 % 3.1 FOLD 2.3 % 0.4 % 1.8 FOLD


Eastleigh 2.0 % -0.9 % 2.9 FOLD 4.1 % 8.1 % 2.8 FOLD
Gigiri -2.2 % 3.5 % 2.6 FOLD -2.5 % -2.1 % 1.9 FOLD
Karen -0.2 % 2.9 % 3.1 FOLD -0.1 % 0.6 % 1.9 FOLD
Kileleshwa -2.8 % -2.3 % 2.5 FOLD -1.9 % -3.1 % 2.0 FOLD
Kilimani -1.7 % -4.0 % 2.3 FOLD -0.2 % 2.7 % 1.8 FOLD
Kitisuru 1.0 % 6.6 % 2.8 FOLD -2.7 % -7.3 % 2.5 FOLD
Langata 1.1 % 3.7 % 3.6 FOLD -5.9 % -6.0 % 1.8 FOLD
Lavington -1.6 % 0.3 % 2.4 FOLD -1.2 % -1.4 % 2.3 FOLD
Loresho 0.7 % 5.8 % 2.2 FOLD -1.9 % -2.1 % 2.4 FOLD
Muthaiga 1.5 % 16.4 % 2.1 FOLD -2.0 % -4.9 % 2.5 FOLD
Nyari 0.1 % 8.0 % 2.4 FOLD 0.4 % -0.4 % 1.7 FOLD
Parklands -0.3 % 1.2 % 2.9 FOLD -1.5 % 0.4 % 2.1 FOLD
Ridgeways 1.5 % 5.0 % 2.4 FOLD 0.7 % 5.0 % 2.2 FOLD
Runda -0.4 % 1.0 % 3.1 FOLD -0.7 % -0.1 % 1.8 FOLD
Spring Valley 0.3 % 3.4 % 2.2 FOLD -2.5 % -2.3 % 1.8 FOLD
Upperhill -2.8 % -5.9 % 2.9 FOLD -0.3 % 1.9 % 3.2 FOLD
Westlands -2.0 % -2.2 % 2.5 FOLD -1.9 % -3.2 % 2.2 FOLD

Sales Prices Rental Prices

Nairobi Satellite Town Quarter Annual Change Quarter Annual Change


Property Index % Change % Change From 2007 % Change % Change From 2007

Athi River 1.5 % -0.2 % 2.4 FOLD -1.2 % -6.3 % 1.5 FOLD
Juja -0.7 % -3.0 % 2.7 FOLD -0.4 % 15.0 % 2.8 FOLD
Kiambu 2.5 % 9.4 % 2.7 FOLD -3.2 % -2.9 % 2.4 FOLD
Kiserian 2.8 % 3.7 % 2.5 FOLD 3.3 % 3.4 % 2.4 FOLD
Kitengela 2.6 % 8.3 % 2.5 FOLD -2.3 % -2.3 % 2.0 FOLD
Limuru 3.2 % 7.8 % 2.5 FOLD 2.5 % 11.6 % 2.1 FOLD
Mlolongo -0.1 % -2.8 % 1.6 FOLD -1.0 % -2.2 % 2.0 FOLD
Ngong 1.4 % 8.3 % 2.5 FOLD 5.3 % 7.1 % 2.2 FOLD
Ongata Rongai 1.4 % 5.7 % 2.6 FOLD -0.4 % 0.4 % 2.2 FOLD
Ruaka -3.1 % -2.3 % 1.9 FOLD 3.4 % 12.0 % 2.1 FOLD
Ruiru 0.6 % 5.5 % 3.1 FOLD -0.7 % 7.4 % 2.2 FOLD
Syokimau -1.0 % -2.1 % 1.9 FOLD -1.3 % -4.1 % 2.0 FOLD
Thika 1.5 % -3.0 % 1.9 FOLD -0.6 % 0.6 % 2.0 FOLD
Tigoni -1.3 % 5.4 % 2.0 FOLD 2.2 % 2.0 % 1.8 FOLD

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
HOUSE PRICE INDEX
QUARTER TWO REPORT
2017

SNAP SHOTS:
The Hass Sales Index
• The Hass Composite Sales Index is representative of
All Property Types
all properties for sale in Kenya
500
450 • Property values have increased by 4.24 times since
400 2000.
Index 2000 =100

350
300 • The index shows a property price fall of -3.1% in the
250 last quarter and a -2.2% fall in the last year.
200
150
100
50
0
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4
2016 Q2
2016 Q4
2017 Q2

SNAP SHOTS:
Annual Average • The annual average is representative of the average
All Property Types price of all properties offered for sale in Kenya.
55,000
50,000 • The average value for a property has gone from 7.1
ASking Price KSH.s 1000s

45,000
40,000 million in December 2000 to 30.4 million in
35,000 June 2017.
30,000
25,000
20,000 • The average value for a 4-6 bedroom property is
15,000
10,000 currently 45.4 million.
5,000
0 • The average value for a 1-3 bedroom property is
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4
2016 Q2
2016 Q4
2017 Q2

currently 13.8 million.

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
Mix by Year
All Property Types • The Mix by Year is a measure of the percentage that
each type of property represents in the market.
100%
• In 2001, Apartments took up 23.5% of the market,
90%
80%
semi-detached took up 24.5% of the market and
Apartments (1-3)
70% detached houses took up 52% of the market.
60% Semi-detached (1-3)
• In December 2016 however, Apartments took up
50% Detached (1-3) 40.7% of the market, Semi-detached Houses took
40%
Apartments (4-6) up 18.7% of the market and Detached Houses took
30%
20% Semi-detached (4-6) up 40.6% of the market.
10% Detached (4-6)
0%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
HOUSE PRICE INDEX
QUARTER TWO REPORT
2017

400.00 SNAP SHOTS:


The Hass Rental Index
350.00 All Property Types • The Hass Composite Letting Index is representative
of all properties for rental in Kenya
300.00
Index 2000 =100

• Rents have increased by 3.70 fold since 2001


250.00
• The index shows rents have increased by -2.0% in
200.00
the last quarter but have risen by -0.7% in the last
150.00

100.00

50.00

0.00
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4
2016 Q2
2016 Q4
2017 Q2

SNAP SHOTS:
Annual Average
All Property Types • The annual average is representative of the average
rent of all properties offered to let in Kenya.
300
• The average rental for a property has gone from
ASking Price KSH.s 1000s

250
Kshs. 38,516 in December 2000 to Kshs. 142,531 in
200
June 2017.
150
100 • The average rent for a 4-6 bedroom property is
50 currently Kshs. 240,805
0 • The average rent for a 1-3 bedroom property is
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4
2016 Q2
2016 Q4
2017 Q2

currently Kshs. 67,635

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
Mix by Year
• The Mix by Year is a measure of the percentage that
All Property Types
each type of property represents in the market.
100%
• In 2001, Apartments took up 45.3% of the market,
90%
80% Semi-detached Houses took up 20.5% of the market
Apartments (1-3)
70% and Detached Houses took up 34.1% of the market.
60% Semi-detached (1 -3)
• In December 2016 however, Apartments took up
50% Detached (1-3)
40% 59.5% of the market, Semi-detached Houses took
Apartments (4-6)
30% up 12.8% of the market and Detached Houses took
20% Semi-detached (4 -6) up 27.7% of the market.
10% Detached (4-6)
0%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke

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