Housing Prices Drop in Nairobi

The “stubborn” virus has forced landlords to reduce rental charges. COVID-19 has induced a “new normal” to both the ‘lords’ and the servants. In Kenyan Capital Eastlands, Landlords have eventually defrauded to pressure, agreeing to adjust the initial rental agreement in favor of the clients.

The latest Hass Consult Rental Price Index shared to Hello News reveals that property owners from various estates in Nairobi have turned ears to tenants to reduce or possibly waive rents in the previous month. Nearly 50% of the tenants severed in New Denholm Estate in the Hass Consult Rental Price Index revealed that tenants had been issued about 30% discount on their monthly housing bills. However, rents reduction takes an uneven pattern from one estate to the other. 

Residents from Kitusuri must be the happiest tenants in the capital after their landlords slash monthly house bills by almost 7.7%. Another impressive drop has been registered in Denholm Estate at 4.8%.

Economists state that the decision to drop the house prices is strategic as it aimed not only to retain the existing clients but also to attract new consumers. They have been evicted from other lavish estates like Kilimani Estate. Nonetheless, Hello News has been informed that the drop in rental prices during this period is standard in detached rentals and apartments at almost 0.7%. 

Among other regions that have proved to have cool landlords include Gigiri, Langata, RidgeWays, Nyari, Kilimani, Athi River, and Westlands. However, such areas as Parklands, Kiserian, and Thika have surprisingly statistics after landlords in those Areas defy the rule of the itching COVID-19 economic outlook. Most landlords in those areas have retained their standard monthly charges while a few other increasing their house prices. 

COVID-19 has impacted the country’s economy significantly. Employment research disclosed to Hello News reveals that over 1,000,000 Kenyans have already lost their jobs due to COVID-19, with the most affected group of employees being the media personnel. Most industries across the country’s economy have also been closed; hence, reducing the income of both employees and business owners who, in turn, seek the intervention of the property owners.

The drop in housing prices in most estates in Nairobi is expected to last for the remaining part of the year since most of the closed sectors will take longer than expected to bounce back. On the overall, however, landlords also have bills to settle. Hence, the survey hints on a fluctuation trend within the next three months.