Fastest growing towns in Kenya to buy land (for real estate investment)

Hey great people…

Now, a very interesting report has just been released – by renowned realtor HassConsult..and it confirms what we have always told you….buying land in Nairobi Satellite towns is paying big returns for investors.

To be specific, to us, the report is a good pointer to the fastest growing towns in Kenya near Nairobi that any serious real estate investor should prioritize when buying land..

Before we take you to comparative numbers- and the returns are actually better than even the much hyped government bonds and bills- here is a summary of the towns with the highest profits for investors, from the research report:

Summary of fastest growing towns in Kenya to buy land (for real estate investment) in terms of profitability (land prices appreciation)

Satellite town	Annual % Appreciation price
Ngong	21.4
Thika	17.8
Syokimau	15.8
Athi River	10.6
Kitengela	10.5
Ruiru	8.7
Kiambu	8.1

Below is how the BusinessDaily captured the report findings:

Note that land in Mlolongo appreciated by between 10.5 – 10.9% too..

Land prices in the satellite towns around Nairobi paid investors between 8.1 – 21.4% in profit per acre in the last 1 year

Comparison of the return on land investment with government securities

It is clear from the report data- and remember numbers do not lie- that government securities are not the best paying investment option in Kenya as everyone has been telling you..

Take a look:

Government bonds paid 12.9 – 18% in interest in 2023
1 year treasury bills paid 10.4 – 15.9% in interest in 2023

In short, if you bought land in towns such as Syokimau, Thika, and Ngong, you would either pocket the same return as a friend who had invested in government securities (including infrastructure bonds) or more!

And that is within 1 year…

Why I’m saying that this is remarkable is because land in these locations is expected to continue appreciating by a significant percentage in the next few years, as Nairobians look for safer and less congested places to build homes and or invest..

In other words, you could net 100% return if you are able to buy now and hold for a few years..

Comparison of the return on land investment with return on shares (equities) at the Nairobi securities exchange (NSE)

Many shares at NSE recorded a depreciation in prices (negative prices) in 2023 as foreign investors (who by the way dominate the NSE) sold off due to a weakened shilling (to reduce exposure to potential foreign exchange losses- they buy in Dollars)

So again land in these fast growing satellite towns in Nairobi trumped investment in stocks…