Property prices in Nairobi rose in the third quarter of 2025 despite the traditional August lull, buoyed by growing demand for detached houses, even as rental prices declined following the exit of expatriates linked to US aid cuts.

According to the HassConsult House Price Index for the July–September period, overall property prices increased by 1.1 percent, driven largely by strong demand in high-end suburbs such as Runda, Ridgeways, Loresho, Lavington, Karen, and Muthaiga, as well as satellite towns including Athi River, Ruiru, Tigoni, Juja, and Kiserian.

“The main drivers were spots of high demand for detached houses. For example, in Runda, house prices rose by 4 percent in just 12 weeks, up 15.3 percent on the year, and in Athi River, where the rise accelerated to 4.3 percent in the third quarter, achieving 4.9 percent for the year,” HassConsult noted.

However, rental prices dipped by 1.6 percent in the quarter and 1.3 percent year-on-year, weighed down by a sharp decline in Muthaiga rents as expatriates exited the market following the closure of several aid programmes.

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“Unlike previous expatriate exits in 2012 and during Covid, where rising vacancies led to falling sales and rental prices, this time the scale of local demand for detached houses has sustained sales growth even as rentals fall,” the report added.

For apartments, prices remained stable amid mixed trends — with Parklands and Riverside posting notable rent increases, while Upper Hill saw declines due to an oversupply of older units. Parklands rents rose 12.5 percent over the past year, driven by newer, higher-end apartment stock entering the market.