The H ass Property

INDEX
QUARTER FOUR REPORT
2013

Overpriced mortgages push up

semi-detached rents
• Overall, asking prices for residential property sales fell in the fourth quarter of last year
• Asking prices fell by an average 1.3 per cent for detached houses and apartments
• But asking prices for semi-detached houses continued to rise, albeit by a marginal 0.6 per cent
• However, the rate of rent increases accelerated from October to December
• Asking rents for apartments, which had fallen during 2013, rose by 4.2 per cent in the final quarter
• Semi-detached rents also continued their sharp rise, up a further 4.5 per cent on the previous quarter, and 19.4 per cent
on a year earlier
• Asking rents for detached houses continued to rise at a more subdued rate of 1.9 per cent in the fourth quarter
• The now prolonged period of property sales prices, with the mortgage market stalled, is also now having a negative
impact on property investment returns

Index Highlights:

SALES AND RENTAL INDEX YEAR TO Q4 The Hass Sales Index The Hass Rental Index

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

Q4

Q1

Q2

Q3
2012 Q4

2013 Q1

2013 Q2

2013 Q3

2013 Q4

Q4

Q1

Q2

Q3

Q4
2012

2012

2013

2013

2013
2012

2013

2013

2013

2013

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

All Properties -1.0% 0.3%

Detached Houses -1.3% 0.5%

Semi-detached Houses 0.6% 0.1%
Apartments -1.3% -0.2%
* 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 3.0% 8.5%
Detached Houses 1.9% 8.5%
Semi-detached Houses 4.5% 19.4%
Apartments 4.2% 2.2%
* 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 FOUR REPORT
2013

HassConsult today announced the results of the Hass Residential Price Index for the fourth quarter of 2013,
revealing accelerating rent rises in the final months of last year, driven by significant over-demand for rentals.
“For the country's expanding middle classes, the path of progressing from renting to purchasing is being
blocked, now for a third year running, by the nation's exceptionally high mortgage rates,” said Ms Sakina
Hassanali, Head of Research and Marketing at HassConsult.
“Typical first-time buyers of apartments and low-end town houses are continuing to find mortgages
unaffordable, creating a demand bulge in rentals.”
This clustering saw semi-detached rents moving sharply upwards all year, rising by 4.5 per cent in the fourth
quarter on third quarter levels, and by 19.4 per cent on a year earlier.
The final quarter also saw a renewed take-off in asking rentals for apartments, up by 4.2 per cent on the
previous quarter, taking the rise for the year to 2.2 per cent, as the sudden rises more than offset earlier falls in
asking rents.
In property sales, however, only the asking prices of town houses rose from October to December, up by 0.6 per
cent on the previous three months, while the asking prices for detached houses and apartments fell by 1.3 per
cent.
'At a profound level, the failure of the mortgage market to provide a new route to home ownership is now
shaping the Kenyan property market in a way that cannot be sustainable,” said Ms Hassanali.
“Demand is bulging in rental properties, even as developers are being deterred from new construction by flat
sales prices and rising costs. The sum is ever higher rents, in a population made up of landlords and tenants.”

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 FOUR 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 3.37 times since
350 2000.
Index 2000 =100

300
• The index shows a property price fall of 1.0% in the
250
200 last quarter and a 0.3% rise in the last year.
150
100
50
0
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
2013 Q4

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 24.2 million in
20,000 December 2013.
15,000
• The average value for a 4-6 bedroom property is
10,000
5,000 currently 33.8 million.
0 • The average value for a 1-3 bedroom property is
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
2013 Q4

currently 11.4 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%
80% Apartments (1-3 Bed)
semi-detached took up 24.5% of the market and
70% detached houses took up 52% of the market.
Semi-detached (1-3 Bed)
60% • In 2013 however, apartments took up 41.7% of the
Detached (1-3 Bed)
50%
market, semi-detached houses took up 24% of the
40% Apartments (4-6 Bed)

30% market and detached houses took up 34.3% of the

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

0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

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 FOUR REPORT
2013

The Hass Sales Index Annual Average Annual % Change

Detached Houses Detached Houses Detached Houses
50%
450 50,000 40%
45,000

ASking Price KSH.s 1000s

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

30,000 20%
300 25,000
250 20,000 10%
200 15,000
10,000 0%
150 5,000 -10%
100 0

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
2013 Q4
50 -20%

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
2013 Q4
0
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
2013 Q4

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 3.94 times since 2001, a 1.3% fall in the last quarter and a 0.5% rise in
the last year. The average price for a detached house is currently 34.7 million up from 8.8 million in December 2000.

The Hass Sales Index Annual Average Annual % Change

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

20,000 30%
350
Index 2000 =100

300 15,000 20%

250 10%
10,000
200
0%
150 5,000
100 -10%
0
50 -20%
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
2013 Q4

0
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
2013 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
2013 Q4

SNAP SHOTS:
• Semi-detached houses include townhouses and maisonettes that are semi-detached or terraced.
• Property values for semi-detached houses have increased by 2.96 times since 2001, a 0.6% rise in the last quarter and a 0.1%
rise in the last year. Average price for a semi-detached house is currently 19.4 million up from 6.5 million in December 2000.

The Hass Sales Index Annual Average Annual % Change

Apartments Apartments 50% Apartments
450 18,000 40%
ASking Price KSH.s 1000s

16,000
400 30%
14,000
350 12,000
Index 2000 =100

20%
300 10,000
8,000 10%
250
6,000 0%
200 4,000
150 2,000 -10%
100 0
-20%
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
2013 Q4

50
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
2013 Q4

0
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
2013 Q4

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 2.35 times since 2001, a 1.3% fall in the last quarter and a 0.2% fall in the last
year. The average price for an apartment is currently 12.2 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 FOUR 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
350
• Rents have increased by 3.13 times since 2001
300 • The index shows rents have risen by 3.0% in the last
Index 2000 =100

250 quarter but have risen by 8.5% in the last year.

200
150
100
50
0
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
2013 Q4

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

150 Kshs. 38,516 in December 2000 to Kshs. 120,372 in

December 2013.
100
• The average rent for a 4-6 bedroom property is
50
currently Kshs. 183,899
0 • The average rent for a 1-3 bedroom property is
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
2013 Q4

currently Kshs. 67,651

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%
80% Apartments (1-3 Bed)
semi-detached took up 20.5% of the market and
70% detached houses took up 34.1% of the market.
Semi-detached (1-3 Bed)
60%
Detached (1-3 Bed)
• In 2013 however, apartments took up 54.3% of the
50%
market, semi-detached took up 20% of the market
40% Apartments (4-6 Bed)

30% and detached houses took up 25.7% of the market.

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

0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

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 FOUR REPORT
2013

The Hass Rental Index Annual Average Annual % Change

Detached Houses Detached Houses 50% Detached Houses
400 250 40%

ASking Price KSH.s 1000s

350 200 30%
300
Index 2000 =100

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

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
2013 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
2013 Q4
0
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
2013 Q4

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 3.25 times since 2001, a 1.9% rise in the last quarter and a 8.5% rise in the
last year. The average rental for a detached house is currently Kshs. 185,029 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
400 160 40%
ASking Price KSH.s 1000s

350 140
30%
120
300
Index 2000 =100

100 20%
250 80 10%
200 60
40 0%
150
20 -10%
100 0
50 -20%
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
2013 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
2013 Q4
0
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
2013 Q4

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 2.97 times since 2001, a 4.7% rise in the last quarter and a 19.4% rise in
the last year. The average rental for a semi-detached house is currently Kshs. 126,724 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
Index 2000 =100

80
20%
250 60
200 10%
40
150 0%
20
100 -10%
0
50 -20%
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
2013 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
2013 Q4

0
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
2013 Q4

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 3.01 times since 2001, 4.2% rise in the last quarter and a 2.2% rise in the last
year. The average rent for an apartment is currently Kshs. 69,858 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