NAIROBI, Kenya, Nov 6 – House prices in Nairobi’s suburbs rose by 2.3 percent in the third quarter of 2026, while rental prices increased by 2.7 percent as demand for homes in established neighbourhoods remained strong.
The HassConsult House Price Index shows that Spring Valley recorded the highest quarterly house price growth at 6.8 percent, followed by Westlands at 5.9 percent, Muthaiga at 5.5 percent, and Karen and Loresho at 5.2 percent each.
Rental prices in the suburbs rose from 1.4 percent in the previous quarter to 2.7 percent, with Loresho recording the highest increase at 6.2 percent. Average monthly rent in the area stood at Sh338,100.
Kitisuru recorded rental growth of 5.1 percent, with average monthly rent at Sh350,100, while Muthaiga rose by 4.5 percent to Sh370,900. Gigiri recorded a 3.9 percent increase, with average rent reaching Sh402,100.
The report attributed the rise in prices to lower borrowing costs, increased private-sector lending and limited housing supply in established suburbs.
The trend was different in satellite towns, where house asking prices fell by 0.6 percent for the second consecutive quarter to an average of Sh14.43 million. Rental growth also slowed to 0.4 percent.
Ngong recorded the largest decline in house prices at 1.2 percent to Sh19.1 million, followed by Ongata Rongai, where prices fell by 1 percent to Sh15.4 million.
House prices in Juja dropped by 0.6 percent to Sh12.8 million, while Kitengela recorded a 0.5 percent decline to Sh13.2 million.
HassConsult attributed the weaker performance in satellite towns to affordability pressures and competition from other housing options.
