THE cost of apartments grew by a faster rate than bungalows and maisonettes across the country in the third quarter, a quarterly survey by the Kenya Bankers Association shows.
The KBA Housing Price Index attributes this to high demand by the middle-income home buyers.
“Apartment prices seem to be changing faster across all the regions compared to maisonettes and bungalows,” the report says. “With apartments targeting the middle class, their popularity is a function of their relative affordability.”
In some regions, however, the price movements for both bungalows and apartment were more or less similar over the review period.
“This [the rise in prices of bungalows] is an implication of the number of old bungalows offered in the market declining,” the report says.
Researchers at KBA concluded slowing supply of bungalows means the prospects of redeveloping older ones into new apartments are becoming dismal.
The KBA-HPI was launched by KBA on Monday in Nairobi.
It shows an apartment cost between Sh10 million to Sh19 million in Kiambu, South B, Kabete, Komarock, Imara Daima, Membley, Buruburu, Rongai, Waiyaki Way, Mbagathi road, Ngong Road and Langata.
In Kileleshwa, Kilimani, Lavington, Westlands, Spring Valley, Runda, Karen, Garden Estate, Parklands, Ridge Ways, Muthaiga, Loresho, Kitsuru and Riverside, a house is priced in the upwards of Sh25 million.
Apartments in Milimani in Kisumu, Milimani in Nakuru, Nyali [Mombasa] and, Adam Arcade and Mountainview in Nairobi also fall in this price band.
According to the index, the overall demand for houses on offer continued to be influenced by the size, location and social amenities. Amenities such as proximity to good roads, shopping malls and centres, schools and health centres are critical in dictating the price of the house.
There was also a preference for gated-community housing, underlining the importance potential homeowners attach to convenience and security that come with these developments.