Nairobi’s steep rent increases are ridiculous
According to the latest Hass Consult statistics, most Nairobi estates experienced a rental increase in the last year, with the price of rental houses increasing up to five times in some areas on the outskirts of Nairobi.
This is despite most of the infrastructure within them being over stretched or non-functional.
From the report, South C, South B, Kileleshwa, Upper Hill, Muthaiga North and Kitengela were some of the estates that had a steep rise in the rental asking prices, irrespective of the type of houses.
In Kitengela for example, the average rental asking price was Sh53,000, up from Sh47,000 last year. This is ridiculous given that this has been a property hotspot where the average Nairobian can own property.
Landlords are cashing in on the huge demand and some explain that the high mortgage rates are forcing them to adjust the rents upwards to cushion themselves.
But this should not be at the expense of the mwananchi, who also has to grapple with the high cost of living.
A town like Kitengela, for example has no sewage line, dependable water system leave alone a road network outside the Athi River-Namanga highway.
Estates like South C and Kileleshwa have seen a complete shift from dilapidated apartments to high rise luxurious apartments that have been able to attract the higher idle class market who have contributed to maintain the continuous price shift upwards.
For most city resident, this calls for a change in their thinking.
You can now acquire land and build your own house instead of paying Sh53,000 to live in someone’s house.
For most people, the viable option to home ownership would be the Sacco, where with a good savings, one can be able to borrow up to three times, buy land and maybe settle for construction financing, which is a cheaper option as compared to the full mortgage.
But as it is, Hass Consult still predicts that the rental prices for houses within Nairobi are bound to increase because of high interest rates, the great demand of houses by the ever increasing population and the improvement of infrastructure by the central government.