Expressway spike cost of apartments
Investors are eyeing apartments along Mombasa Road in anticipation of a surge in property prices once the Sh63 billion Nairobi Expressway is complete.
The 2021 Hass Property Index for the third quarter states that demand for apartments along the 27 kilometre stretch saw prices at touch points including Mlolongo, Athi River and Syokimau soar by 1.9 per cent, 1.8 per cent, and 0.03 per cent respectively.
Hass Consult head of development and research, Sakina Hassanali said enhanced accessibility along Mombasa Road will make apartments nearby more attractive on completion of the Sh63 billion mega project, compared to other areas and towns.
Confidence in sub-sector
“We are seeing buyer confidence in the apartment market along the Nairobi Expressway because there are expectations that completion of the project is expected to bring these areas closer to the city by cutting travel time,” said Hassanali.
She said Athi River has the most affordable apartments in satellite towns with current asking prices at Sh5.5 million.
Transport Cabinet Secretary James Macharia hinted early this month that motorists will start using the Expressway by April next year, though it will be opened in March for a test run.
“It will take 20 minutes from one end of the highway to the other and save us time and agony of traffic snarl ups that are often witnessed on the stretch of the roads being constructed,” said Macharia.
The index shows that the period in review saw a modest 1 per cent growth in overall property market as the market slowly recovered.
Detached houses recorded the highest gain at 1.7 per cent over, while semi-detached ones increased by 0.3 per cent and apartments reduced by 0.7 per cent over the same time.
Suburban areas like Upperhill showed mild recovery at 3.1 per cent over the quarter while those in Runda recorded a 1.3 per cent drop.
Langata was top on an annual basis with prices rising by 11.9 per cent but dropped by 3.7 per cent in Riverside over a similar period.