The H ass Property

INDEX
QUARTER ONE REPORT
2014

Property prices bounce back,

as rents keep rising
• House sale prices bounced back in Q1 after the dip of the second half of 2013
• Asking prices for detached and semi detached houses rose 1.8 per cent compared with the previous quarter
• The price bounce was most pronounced for apartments, up 2.3 per cent on Q4 2013
• Rent rises also accelerated marginally in the first quarter
• Rents for detached houses rose more sharply, up 2.3 per cent, as did apartment rents, up 2.2 per cent
• The strongest rent growth continued in semi-detached houses, but at a slower rate of 2.7 per cent higher than the
previous quarter, making rents for semi-detached houses 18.1 per cent higher than a year earlier
• Sales volumes rose, but most markedly for cash-financed high-end properties

Index Highlights:

SALES AND RENTAL INDEX YEAR TO Q1 The Hass Sales Index The Hass Rental Index

350.0 330.0
320.0
Index Index
2001 = 2001 =310.0
100
340.0 100 300.0

290.0
330.0 280.0
2013 Q1

2013 Q2

2013 Q3

2013 Q4

2014 Q1
2013 Q1

2013 Q2

2013 Q3

2013 Q4

2014 Q1

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

All Properties 1.9% 1.7%

Detached Houses 1.8% 1.1%

Semi-detached Houses 1.8% 3.5%
Apartments 2.3% 1.9%
* 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 2.3% 9.0%
Detached Houses 2.3% 8.7%
Semi-detached Houses 2.7% 18.1%
Apartments 2.2% 4.1%
* 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 ONE REPORT
2014

Hass consult today announced property price data for the first quarter of 2014 revealing a pronounced bounce back in
house and apartment sales prices, and continuing rent rises.
The consultancy reported that property sales volumes also picked up from January and February and were markedly
strong in March. However, the most intense activity was at the top of the market, with the cheapest properties still taking
the longest to sell.
“The market continues to be handicapped by the lack of access to mortgages for mid-level and lower level buyers,” said
Ms Sakina Hassanali, head of marketing for Hass Consult.
“Nationwide, the demand for housing is strongest at the lowest end of the market, but the financing options are almost
non-existent, rendering the private sector property market a high-end affair for so long as property remains a cash
purchase only,” she said.
The bottleneck in housing finance also continued to push rents up, as professional Kenyans stayed in rented
accommodation, with the rental of choice being semi-detached town houses.
Asking rents for semi-detached houses rose a further 2.3 per cent in the first quarter of 2014 compared with prices from
October to December last year, and were 18.1 per cent higher on a year earlier.
The rent rises for detached houses were much more subdued, at 8.7 per cent on a year earlier, while apartment rents
rose by 4.4 per cent across the year.
“With the finance blockage also impacting landlords in acquiring new properties, and the rental yields on properties still
at less than mortgage interest rates, the race is now on to get rents up to a level where landlords can cover finance costs
and not end up making losses,” said Ms Hassanali.
Until then, and with cash buyers continuing to drive the market, some further asking price rises are likely in 2014, based
on the reduced flow of new building - caused by the high levels of finance costs for developers.
However, many developers have now found alternative means of financing, either by raising money outside Kenya, or
through taking equity stakes in projects.
“The outlook is for some marginal improvement in the rate of new building from this year, but a market that will continue
to be substantially oriented to cash buyers, meaning substantially the very wealthy: until housing finance becomes a
policy priority,” said Ms Hassanali.

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 ONE REPORT
2014

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 3.44 times since
350 2000.
Index 2000 =100

300
250
• The index shows a property price rise of 1.9% in the
200 last quarter and a 1.7% rise in the last year.
150
100
50
0
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
2014 Q1

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 24.6 million in March
20,000 2014.
15,000
• The average value for a 4-6 bedroom property is
10,000
5,000 currently 34.5 million.
0 • The average value for a 1-3 bedroom property is
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
2014 Q1

currently 11.5 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 December 2013 however, Apartments took up
50% Detached (1-3 Bed)

41.7% of the market, Semi-detached Houses took

40% Apartments (4-6 Bed)

30% up 24.0% of the market and Detached Houses took

Semi-detached (4-6 Bed)
20% up 34.3% of the 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 ONE REPORT
2014

The Hass Sales Index Annual Average Annual % Change

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

ASking Price KSH.s 1000s

400 45,000
40,000 30%
350
Index 2000 =100

35,000
300 30,000 20%
250 25,000 10%
20,000
200 15,000 0%
150 10,000
5,000 -10%
100 0
50 -20%

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
2014 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
2014 Q1
0
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
2014 Q1

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 4.01 times since 2001, a 1.8% rise in the last quarter and a 1.1% rise in
the last year. The average price for a Detached House is currently 35.3 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 25,000 40%
ASking Price KSH.s 1000s

400 20,000 30%

350
Index 2000 =100

300 15,000 20%

250 10,000 10%
200 0%
5,000
150
-10%
100 0
-20%
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
2014 Q1

50
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
2014 Q1
0
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
2014 Q1

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.
• Property values for Semi-detached Houses have increased by 3.01 times since 2001, a 1.8% rise in the last quarter and a 3.5%
rise in the last year. The average price is currently 19.7 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

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

12,000 20%
300 10,000
250 8,000 10%
200 6,000
4,000 0%
150 2,000 -10%
100 0
-20%
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
2014 Q1

50
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
2014 Q1

0
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
2014 Q1

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 2.40 times since 2001, a 2.3% rise in the last quarter and a 1.9% rise in the
last year. The average price for an Apartment is currently 12.5 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 ONE REPORT
2014

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 3.20 times since 2001
Index 2000 =100

300 • The index shows rents have risen by 2.3% in the last
250 quarter but have risen by 9.0% in the last year.
200
150
100
50
0
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
2014 Q1

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. 123,197 in

March 2014.
100
• The average rent for a 4-6 bedroom property is
50
currently Kshs. 189,843
0 • The average rent for a 1-3 bedroom property is
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
2014 Q1

currently Kshs. 69,397

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

30% up 20.0% of the market and Detached Houses took

Semi-detached (4-6 Bed)
20% up 25.7% of the market.
10% Detached (4-6 Bed)

0%
2004
2005
2006
2007
2008
2009
2010
2011

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 ONE REPORT
2014

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%
Index 2000 =100

300
150 20%
250
100 10%
200
150 50 0%
100 -10%
0
50 -20%

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
2014 Q1

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 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
2014 Q1

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 3.32 times since 2001, a 2.3% rise in the last quarter and an 8.7% rise in
the last year. The average rental for a Detached House is currently Kshs. 189,332 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
400 200 40%
ASking Price KSH.s 1000s

350 30%
150
Index 2000 =100

300
20%
250 100 10%
200
150 50 0%
100 -10%
0
50 -20%
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
2014 Q1

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 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
2014 Q1

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.
• Rental values Semi-detached Houses have increased by 3.05 times since 2001, a 2.7% rise in the last quarter and an 18.1% rise
in the last year. The average rental is currently Kshs. 130,142 up from Kshs. 42,688 in December 2000.

The Hass Rental Index Annual Average Annual % Change

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

350 100 30%

Index 2000 =100

300 80 20%
250 60 10%
200 40
150 0%
20
100 -10%
0
50 -20%
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
2014 Q1

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 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
2014 Q1

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 3.07 times since 2001, 2.2% rise in the last quarter and a 4.1% rise in the last
year. The average rent for an Apartment is currently Kshs. 71,370 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