NAIROBI: Land prices in the suburbs of Nairobi City experienced a 1.6 percent increase during the third quarter of 2024, reflecting a recovering real estate sector, as reported by the HassConsult Land price indices. The indices show that this growth is driven by heightened land demand for new developments, marking a departure from a period of prolonged stagnation in the market. According to Kenya News Agency, the city's suburbs have witnessed more than one percent growth in land prices for four consecutive quarters, following 26 periods of sub-one percent growth. Parklands led the way with a 3.4 percent increase, reaching an average of Sh434.2 million per acre, fueled by both commercial and residential development activities. Langata and Kileleshwa also saw notable gains of 2.9 percent and 2.8 percent, respectively, as demand shifts towards areas capable of supporting multi-dweller units in a price-sensitive economy. In the satellite towns surrounding Nairobi, significant price growth was recorded in Mlolon go (6.6 percent), Thika (6.3 percent), and Kiserian (4.7 percent) in the second quarter. These increases were attributed to attractive pricing and upcoming infrastructure developments. In Mlolongo, the Nairobi Expressway has enhanced accessibility, sustaining land demand through a mix of residential and industrial developments. Thika's growth is bolstered by Kiambu County's masterplan to transform it into an industrial smart-city, spurring land acquisition in anticipation of increased housing and commercial demand. Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult, noted that satellite towns exhibit more dynamic price changes due to evolving development plans and infrastructure impacts on buyer behavior. The rise in land prices in these areas rivals returns from other asset classes like bonds and shares at the Nairobi Securities Exchange, especially as bond returns are expected to decline with the Central Bank of Kenya's rate cuts. This trend enhances the appeal of land as an i nvestment asset.