The H ass Property

INDEX
QUARTER THREE REPORT
2013

Detached house prices drop

in slow market
• Asking prices for properties fell in the third quarter of 2013, by 1.5 per cent
• The most significant drop came in asking prices for detached houses, down 2.3 per cent on three months earlier
• Asking prices for apartments also fell, by 0.8 per cent. Semi-detached houses, however, saw some recovery in asking
prices for falls earlier in the year, up 0.8 per cent on the previous quarter.
• The volume of interest in property buying held up better in the quarter, than rental interest, which fell markedly even as
asking rents rose by 1.3 per cent
• The sharpest rise in rents came for semi-detached houses, up a significant 4.7 per cent on the previous three months.
• Asking rents for detached houses also rose, by 1.7 per cent, but at a sharply lower rate of growth than earlier in the year
while apartment rents fell by 1.3 per cent on the previous quarter

Index Highlights:

SALES AND RENTAL INDEX YEAR TO Q3 The Hass Sales Index The Hass Rental Index

350.0 310.0
300.0
Index 340.0 Index
2001 = 2001 =
290.0
100 100 280.0
330.0
270.0
320.0 260.0
2012 Q3

2012 Q4

2013 Q1

2013 Q2

2013 Q3
2012 Q3

2012 Q4

2013 Q1

2013 Q2

2013 Q3

HEADLINES - HASS SALES INDEX % Change in Quarter % Change in Year

All Properties -1.5% 3.0%

Detached Houses -2.3% 4.2%

Semi-detached Houses 0.8% -0.3%
Apartments -0.8% 2.2%
* The Hass Composite Sales Index is a measure of asking sales prices, based on Mix Adjusted Methodology

HEADLINES - HASS RENTAL INDEX % Change in Quarter % Change in Year

All Properties 1.3% 9.6%
Detached Houses 1.7% 12.1%
Semi-detached Houses 4.7% 18.9%
Apartments -1.5% 0.1%
* The Hass Composite Lettings Index is a measure of asking sales prices, based on Mix Adjusted Methodology

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
 The H ass Property

INDEX
QUARTER THREE REPORT
2013

HassConsult today announced results for the Hass property price indices for the third quarter of 2013, reflecting a degree
of slowdown in the property market within a generally sluggish economic environment.
“Hopes that renewed investor confidence would spark an upturn in economic activity from the second quarter have been
dampened by several factors, including the aggressive collection of public sector revenues. But subdued economic
growth has not yet dented property prices, which continue to record some increases,” said Ms Sakina Hassanali, Head of
Marketing and Research at HassConsult.
The most significant drop in asking prices was for detached properties, where asking prices fell by 2.3 per cent from July to
September, compared with three months earlier. This top end of the market was the most effected, as buyers continued
to experience financial pressures, and with new cash for unmortgaged purchasing also showing signs of slowdown.
Semi-detached houses, however, fared somewhat better, with asking prices up by 0.8 per cent. Sales in this segment
were supported by a resumed, albeit marginal, flow of mortgages, and purchasing by cash buyers unable to reach
standalone prices. The supply of semi-detached houses was also tighter than in other segments, with this section of the
market the most effected by the slowdown in building last year, following the jumps in interest rates.
Closing prices for semi-deatched houses also saw some rises up by close to 2 per cent in the quarter on the three months
earlier.
The general tightening in finances also brought some clustering into semi-detached house rentals, with asking rents
jumping a notable 4.7 per cent in the quarter, as the urban middle classes and those enjoying greater affluence continued
to find mortgages out of reach, as well as detached house rents, leading to a concentration into semi-detached house
rentals.
In the apartment market, the signs of financial pressure came in both apartment buying and renting, with apartment
prices dropping by 0.8 per cent, and asking rents by 1.3 per cent.
“Buying enquiries were up on the levels seen earlier in the year, but were lower than had been anticipated,” said Sakina
Hassanali. “Generally, the economy has not picked up since the election, and there is still some hesitancy by investors
around the nation's political future and stability. At the same time, pressures such as the broader imposition of VAT have
impacted the middle and lower market, and business generally.”
“The market remains resilient, but current economic pressures could now see some easing of property prices, most
particularly at the top of the market, but also across apartment prices and rents.”

For more information, please contact:

Sakina Hassanali - Head of Marketing & Research
HassConsult Ltd
ABC Place, Westlands
Tel: +254 020 4446914

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
 The H ass Property

INDEX
QUARTER THREE REPORT
2013

SNAP SHOTS:
The Hass Sales Index • The Hass Composite sales Index is representative of
All Property Types all property for sale in Kenya
450
400 • Property values have increased by 3.41 times since
350 2000.
Index 2000 =100

300
250
• The index shows a property price fall of 1.5% in the
200 last quarter and a 3.0% rise in the last year.
150
100
50
0
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

SNAP SHOTS:
Annual Average
• The annual average is representative of the average
All Property Types
price of all properties offered for sale in Kenya.
35,000
• The average value for a property has gone from 7.1
ASking Price KSH.s 1000s

30,000
25,000
million in December 2000 to 24.4 million in
20,000 September 2013.
15,000
• The average value for a 4-6 bedroom property is
10,000
5,000
currently 34.0 million.
0 • The average value for a 1-3 bedroom property is
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

currently 11.7 million.

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
Mix by Year • The Mix by Year is a measure of the percentage that
All Property Types each type of property represents in the market.

100% • In 2001, apartments took up 23.5% of the market,

90% semi-detached took up 24.5% of the market and
Apartments (1-3 Bed)
80%
detached houses took up 52% of the market.
70% Semi-detached (1-3 Bed)

60%
Detached (1-3 Bed)
• In 2013 however, apartments took up 40.1% of the
50%
market, semi-detached houses took up 26.5% of the
40% Apartments (4-6 Bed)

30% market and detached houses took up 33.4% of the

Semi-detached (4-6 Bed)
20% market.
10% Detached (4-6 Bed)

0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

Breakdown of 10 years data by Year

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
 The H ass Property

INDEX
QUARTER THREE REPORT
2013

The Hass Sales Index Annual Average Annual % Change

Detached Houses Detached Houses Detached Houses
50,000 50%
45,000

ASking Price KSH.s 1000s

450 40%
40,000
400 35,000 30%
350 30,000
Index 2000 =100

25,000 20%
300
250 20,000 10%
200
15,000
10,000 0%
150 5,000 -10%
100 0
50 -20%

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
0
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Detached houses include stand alone houses, bungalows, cottages and villas either on their own plot or in a gated community.
• Property values for detached houses have increased by 3.99 times since 2001, a 2.3% fall in the last quarter and a 4.2% rise in
the last year. The average price for a detached house is currently 35.1 million up from 8.8 million in December 2000.

The Hass Sales Index Annual Average Annual % Change

Semi-detached Houses Semi-detached Houses Semi-detached Houses
50%
450 40%
25,000
400
ASking Price KSH.s 1000s

350 20,000 30%

Index 2000 =100

300 20%
250
15,000
10%
200 10,000
150 0%
100 5,000
-10%
50 0
0 -20%
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

SNAP SHOTS:
• Semi-detached houses include townhouses and maisonettes that are semi-detached or terraced.
• Property values for semi-detached houses have increased by 2.94 times since 2001, a 0.8% rise in the last quarter and a 0.3%
fall in the last year. The average price for a semi-detached house is currently 19.2 million up from 6.5 million in December 2000.

The Hass Sales Index Annual Average Annual % Change

Apartments Apartments Apartments
400 50%
18,000
350
ASking Price KSH.s 1000s

16,000 40%
300 14,000
Index 2000 =100

30%
250
12,000
10,000 20%
200 8,000 10%
150 6,000
4,000 0%
100
2,000 -10%
50 0
0 -20%
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2002 Q4
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Apartments include apartments, duplexes and triplexes.
• Property values for apartments have increased by 2.38 times since 2001, a 0.8% fall in the last quarter and a 2.2% rise in the
last year. The average price for an apartment is currently 12.4 million up from 5.2 million in December 2000.

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
 The H ass Property

INDEX
QUARTER THREE REPORT
2013

SNAP SHOTS:
The Hass Rental Index • The Hass Composite Letting Index is representative
All Property Types of all property for rental in Kenya
400
• Rents have increased by 3.04 times since 2001
350
300 • The index shows rents have risen by 1.3% in the last
Index 2000 =100

250 quarter but have risen by 9.6% in the last year.

200
150
100
50
0
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

SNAP SHOTS:
Annual Average
• The annual average is representative of the average
All Property Types
rent of all properties offered to let in Kenya.
200 • The average rental for a property has gone from
ASking Price KSH.s 1000s

Kshs. 38,516 in December 2000 to Kshs. 116,899 in

150
September 2013.
100
• The average rent for a 4-6 bedroom property is
50 currently Kshs. 177,511
0 • The average rent for a 1-3 bedroom property is
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

currently Kshs. 65,051

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
Mix by Year
• The Mix by Year is a measure of the percentage that
All Property Types
each type of property represents in the market.
100% • In 2001, apartments took up 45.3% of the market,
90% semi-detached took up 20.5% of the market and
Apartments (1-3 Bed)
80%
70%
detached houses took up 34.1% of the market.
Semi-detached (1-3 Bed)
60% • In 2013 however, apartments took up 54.5% of the
Detached (1-3 Bed)
50%
40%
market, semi-detached took up 19.7% of the market
Apartments (4-6 Bed)
30% and detached houses took up 25.8% of the market.
Semi-detached (4-6 Bed)
20%
10% Detached (4-6 Bed)
0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke
 The H ass Property

INDEX
QUARTER THREE REPORT
2013

The Hass Rental Index Annual Average Annual % Change

Detached Houses Detached Houses Detached Houses
50%

400 250 40%

ASking Price KSH.s 1000s

350 200 30%
300
Index 2000 =100

150 20%
250
200 100 10%
150 50 0%
100 -10%
50
0

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
-20%
0

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Detached houses include stand alone houses, bungalows, cottages and villas either on their own plot or in a gated community.
• Rental values for detached houses have increased by 3.19 times since 2001, a 1.7% rise in the last quarter and a 12.1%% rise in
the last year. The average rental for a detached house is currently Kshs. 181,631 up from Kshs. 56,959 in December 2000.

The Hass Rental Index Annual Average Annual % Change

Semi-detached Houses Semi-detached Houses 50% Semi-detached Houses
160 40%
ASking Price KSH.s 1000s

400 140
30%
350 120
300 100 20%
Index 2000 =100

250 80 10%
200 60
40 0%
150
100
20 -10%
0
50 -20%
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
0
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Semi-Detached houses include townhouses and maisonettes that are semi-detached or terraced.
• Rentals for semi-detached houses have increased by 2.84 times since 2001, a 4.7% rise in the last quarter and a 18.9% rise in
the last year. The average rental for a semi-detached house is currently Kshs. 121,314 up from Kshs. 42,688 in December 2000.

The Hass Rental Index Annual Average Annual % Change

Apartments Apartments Apartments
50%
400 120 40%
ASking Price KSH.s 1000s

350 100 30%

300 80
Index 2000 =100

20%
250 60 10%
200 40
150 0%
20
100 -10%
0
50 -20%
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

0
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Apartments include apartments, duplexes and triplexes.
• Rental values for apartments have increased by 2.88 times since 2001, 1.5% fall in the last quarter and a 0.1% rise in the last
year. The average rent for an apartment is currently Kshs. 67,038 up from Kshs. 21,638 in December 2000.

HassConsult Limited | ABC Place, Waiyaki Way | P.O. Box 14090 - 00800 Nairobi, Kenya www.hassconsult.co.ke
T: +254 20 4446914 | F: +254 20 4447200 | M: 0722 204 764/5; 0733 629 786 | E: info@hassconsult.co.ke