The latest Hass Index report on neighbourhood rents and property prices at the end of 2011 revealed Eastlands as an upcoming investment area as land and property prices appreciated in value. This is in sharp contrast to upmarket areas that are experiencing a decline in both rental prices and property prices.
According to the fourth quarter 2011 report, rent prices in high end areas in and around Westlands, including Lower Kabete, Parklands, Spring Valley, Rosslyn, Gigiri and Muthaiga, fell by up to 8% last year, as tenants negotiated rental price downwards. The trend was exactly opposite in Eastlands, where rents in Buruburu, Donholm, Nyayo Estate, Komarock, Tena and Imara Daima all appreciated by up to 9% over the same period, as tenants who have been living in high end areas shifted homes to Eastlands as a way of cutting household expenses.
The selling price for houses in Brookside and Westlands declined by 5%, while Eastlands prices rose by 9%, this coming despite reduction in traffic congestion in Westlands following expansion of University Way and opening of the Northern Bypass.
The appreciation in property value in Eastlands is attributed to effective railway commuter system running from Nairobi Railway station to Embakasi Village, cutting down travel time for residents by up to 75%, while easing road pressure and allowing motorists to get to the CBD more quickly. It now takes Donholm residents approximately 15 minutes to commute from Donholm to the CBD via the railway commuter system.
Affordable housing in Eastlands has increased demand for housing in the area, contributing to the appreciation in property value. Average house prices in the inner Westlands areas is KES 20 million, compared with KES 5 million in Eastlands.
Appeal for more space in self-standing houses and villas in Eastlands has also pushed for appreciation in property value in the area, fuelled by reduced travel time.
Looking for a place to invest? Eastlands is the place, HassConsult marking out the area as one of Nairobi’s best residential investment, for current returns and yields.