Ruiru is one of the 14 satellite towns in Nairobi which recorded a slight rise in land prices within the first quarter and second quarter of the 2023 Financial year.
According to HassConsult, a real estate company, quarter-two report, land prices within satellite towns were subdued with minimal increases of 1.2 per cent and 5.1 per cent in the year.
Following the slight increase, an acre of land in Ruiru jumped from Ksh28.6 million to Ksh28.8 million. However, other landowners decided to sell small plots ranging from Ksh2.2 million up from Ksh 1.9 million at the start of the year.
The slight jump was attributed to minimal activities in infrastructural development and slowed down in construction activities caused by the recent inflation and economic downtime in the country.
In the first quarter, the HassConsult report noted that Nairobi’s satellite towns increased by 1.28 per cent continuing their trend of higher appreciation rates compared to similar parcels in the city. In the fourth quarter of the 2022 financial year, Land in Ruiru was slightly above Ksh28 million.
The sharp rise between January to March 2023 was attributed to the towns’ affordability and improved infrastructure, which made Ruiru increasingly attractive to potential investors.
“Year on year growth shows land prices in the satellite towns increased by 8.08 per cent compared to a 1.42 per cent annual increase in land prices in the city,” HassConsult noted.
The report further noted that land was worth investment in Ruiru and other satellite towns as the value had increased 10 times since December 2007.
“Ksh1 million invested at the end of 2007 would have been worth Ksh10.71 if invested in land in Nairobi satellite towns,” the report noted.
The satellite towns include Athi River, Juja, Kiambu, Kiserian, Kitengela, and Limuru.
Others included Mlolongo, Ngong, Ongata Rongai, Ruaka, Ruiru, Syokimau, Thika and Tigoni.
Appreciation of land in Ruiru is basically due to increasing demand for residential properties, driven by factors such as population growth, urban migration, and improved employment opportunities in Nairobi and its environs.
Ruiru was touted to become a city due to the massive development that hit the area and its proximity to Nairobi.
