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September 19, 2018

Price hikes in Nairobi above global average

INSIGHT: Knight Frank Kenya MD Ben Woodhams, CfC Stanbic Bank's head of wealth and investments Anjali Harkoo and Knight Frank Africa chairman Peter Welborn. Photo/COURTESY
INSIGHT: Knight Frank Kenya MD Ben Woodhams, CfC Stanbic Bank's head of wealth and investments Anjali Harkoo and Knight Frank Africa chairman Peter Welborn. Photo/COURTESY

PRICES for high-end residences in Nairobi increased by 3.5 per cent in the 12-month period to September, latest survey shows, pointing to renewed resilience.

According to the Knight Frank Prime Global Cities Index for the third quarter, released on Monday, the growth in sale price of houses in the capital outperformed the global average of 1.9 per cent for the first time.

The quarterly index tracks luxury house prices in local currencies in 34 cities worldwide.

The growth was higher than a comparable period to September 2014, which posted a 0.7 per cent rise.

On a six-month basis, asking prices went up 1.1 per cent, while a 0.2 per cent increase was recorded in the three months to September.

Nairobi is now placed 14th in the rankings, having moved up the ladder for the third consecutive time from 26th in the first quarter and 20th in the second quarter.

“While it’s taking a little longer to close deals, we are beginning to sense a slight increase in interest in the prime properties on offer,” managing director for Knight Frank Kenya Ben Woodhams said in a statement.

A prime residential property in the country is usually located within an affluent area, and has exemplary quality and finishing. It is usually priced in the upwards of Sh80 million.

The index shows 73 per cent of the global cities surveyed recorded positive price growth in the year to September compared to 91 per cent two years ago.

Canada’s Vancouver topped the index for the second consecutive quarter, with a 20.4 per cent price rise.

Australia’s Sydney (13.7 per cent) and China’s Shanghai (10.7 per cent) were the only other cities that posted double-digit annual price growth.

“Looking beyond the top rankings, the overall performance of the index is less robust,” said Kate Everett-Allen, a partner for residential research at Knight Frank.

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