Nairobi City’s property prices rose by up to 0.8% in the last quarter of the year 2025. According to the latest property Index by Hass Consult, rents for City dwellers rose by 1.5% pushing rental yields to 7.4%, the highest level recorded since the year 2007.
According to the report, across the fourteen monitored satellite towns, property prices generally rose by 4.5% and rents 8.7% raising yields to 5.2% the highest since 2019.
Wealthy suburbs like Lavington, Ridgeways and Runda faced up to 9.6% of rental price increase. Runda posted the highest quarterly rent growth with house rents rising by 3.1 per cent, followed by Spring Valley with an increase of 2.8 per cent. At the same time, rents also rose in Kilimani, Gigiri, Loresho and Kileleshwa, where house rents hiked by 2.6 per cent, 2.5 per cent, 2.3 per cent and 2.2 per cent, respectively.
“Nairobi’s rental yields have been on an upward path for the last two years, climbing steadily above 7 per cent after many years of running at between 5 and 6 per cent,” said Hass Consult’s C.E.O, Sakina Hassanali.
The sudden increase in rental prices within Nairobi has been mainly attributed to rapid urbanization, coupled with rising costs of construction materials and high inflation.
While the last quarter showed yield growth for rental properties, Apartment sales however recorded varying trends despite apartment rent prices rising in all satellite towns monitored. The largest annual decline in apartment sale prices was recorded in Westlands, which fell by 11.5 percent over 2025, although prices dipped by just 0.5 percent in Q4 as demand began to absorb new supply.
“In the apartments market, demand has never stopped expanding, but each area is now finely tuned in the volume of new development it can absorb at a time, and very large developments often create a dip in rates as entrants discount to achieve full occupancy,” Hassanali added
The report also recorded Land price growth in the city’s 18 monitored suburbs edged down marginally to 5.92 per cent for the year, and 1.32 per cent for the quarter. Meanwhile, the three-year surge in satellite town land prices, which peaked in Q3 of 2024 at 12.58 per cent, slowed far more rapidly, returning to normal levels for the decade at 6.21 per cent at the end of 2025.
Read the Q4 Hass Index here: https://e43d3ea4-13bb-43f1-8518-b326c16bbfb1.filesusr.com/ugd/4a7193_6cc644990388450ab82bab21309b7f46.pdf