House prices increase across the country ,says report

House prices increase across the country ,says report

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Kenya Bankers Association (KBA) CEO Habil Olaka (left) and KBA Director of Research on Financial Markets and Policy Jared Osoro during the launch of the KBA Housing Price Index findings for Quarter 3 of 2015. FILE/PHOTO.

Nairobi, KENYA: The Kenya Bankers Association housing price index has indicated that there has been an increase in house prices by a modest of 1.4% during the first quarter of 2016.

Speaking at a press briefing on Thursday in Nairobi,KBA Director of Research and Policy,Jared Osoro said the increase of housing prices was as a result of market demand factors.

“Size of houses , number of rooms ,houses in gated areas which are associated with security, privacy and proximity to social amenities are some of the factors that led to price movements in the first quarter of 2016,” Osoro said.

On the other hand he indicated that new house units are being put up in the market mainly targeting the middle end of the market making developers to incline more towards renting than selling.

He insisted that there is a new demand for middle income population.

The housing prices were clusterd whereby Mtwapa in Mombasa is in the same price category with mlolongo,Kasarani Likoni, Nakuru, Kisii, Athi River , Eldoret and Kiembeni.

While Nyali is in the same category with Mountain View Lavingtone,Milimani in Kisumu and Westlands.

He added that land prices are relatively high in Nairobi as compared to Mombasa.