The H ass Property

INDEX
QUARTER ONE REPORT
2015

New landlords earning 19 per cent

total return on let apartments
• Asking prices showed some slowdown in the rate of property price rises in the first quarter, with only rises for semi-
detached houses continuing at the same pace
• Asking prices for detached houses fell by 1.6 per cent on the previous quarter. This reflected low buying activity in the
final quarter of 2014, and some small build up of stock for sale
• Asking prices for semi-detached houses and apartments both rose in the quarter, by 2.3 per cent and 1.5 per cent
• Rents rose in Q1 across all segments, but most strongly for semi-detached houses, at 2.2 per cent however, overall rent
rises slowed down, subdued by stable asking prices for apartment rents, up just 0.4 per cent on Q4 2015
• Rental yields remained strongest for semi-detached houses, at 7.76 per cent. Total returns (rental yield + price growth)
were highest on let apartments, at 19 per cent for the year to March 2015.

Index Highlights:

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

370.0 360.0
350.0
360.0
Index Index 340.0
2001 = 2001 =
350.0 330.0
100 100
320.0
340.0
310.0
330.0 300.0
2014 Q1

2014 Q2

2014 Q3

2014 Q4

2015 Q1

2014 Q1

2014 Q2

2014 Q3

2014 Q4

2015 Q1

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

All Properties -0.4% 5.9%

Detached Houses -1.6% 3.1%

Semi-detached Houses 2.3% 10.1%
Apartments 1.5% 12.3%
* 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 1.4% 8.8%
Detached Houses 1.7% 8.6%
Semi-detached Houses 2.2% 10.0%
Apartments 0.4% 8.4%
* 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
2015

HassConsult today unveiled the Hass residential property price indices for the first quarter of 2015, showing sustained
gains for semi-detached housing, against generally subdued property price and rent rises in the first three months of the
year.

The index, based on more than 6,000 records per quarter of asking prices, gathers a sufficient volume of data to allow
analysis of price movements by types of property and area.

“In understanding growth trends, asking prices typically run three to six months ahead of closing prices, so the growth in
asking prices in the third and fourth quarters of 2014 is now reflecting in the higher closing prices in the first quarter of
2015,” said Ms Sakina Hassanali Head of Research at HassConsult.

The current trend in asking prices will likewise impact closing prices in the second and third quarter of this year, she said.

Overall, property inflation slowed down in the first quarter, as asking prices for detached houses and apartments
stabilized, following some slowdown in enquiries and sales closures in the fourth quarter of last year. Asking prices for
detached houses fell by 1.6 per cent in the first quarter.

“This was a result of slow activity in the fourth quarter of last year, which has since picked up, and we do expect further
price growth from here,” said Ms Hassanali.

Asking prices for apartments showed some growth, however, up 1.5 per cent from January to March compared with rates
at the end of 2014, but the rise represented a slowdown from price growth in the fourth quarter of 3.6 per cent on the
earlier three months.

Only semi-detached houses continued at the same pace of price rises, recording a further 2.3 per cent rise in the first
quarter of 2015, following from a 2.4 per cent rise in the final quarter of 2014.

“Semi-detached houses and apartments are now generating substantial returns on investment, with rental yields above
7 per cent, and total returns including price gains, running at 19 per cent in the year to end-March for apartments, and 18
per cent for semi-detached houses,” said Ms Hassanali.

Asking rents for semi-detached houses climbed 2.2 per cent in the first quarter, an acceleration that reflected the
tightening of supply in this segment. But asking rents for apartments rose just 0.4 per cent, having fallen by 0.3 per cent in
the final three months of 2014.

By the end of the first quarter, the rental yield on semi-detached houses was 7.76 per cent, compared with 7.06 per cent
for apartments, and 6.71 per cent for detached houses.

For more information, please contact:

Sakina Hassanali

Head of Research & Marketing

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
2015

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 3.64 times since
350 2000.
Index 2000 =100

300
• The index shows a property price fall of 0.4% in the
250
200 last quarter and a 5.9% rise in the last year.
150
100
50
0
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
2014 Q3
2015 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.
45,000
40,000 • The average value for a property has gone from 7.1
ASking Price KSH.s 1000s

35,000 million in December 2000 to 26.1 million in March

30,000
25,000 2015.
20,000
15,000 • The average value for a 4-6 bedroom property is
10,000 currently 38.9 million.
5,000
0 • The average value for a 1-3 bedroom property is
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
2014 Q3
2015 Q1

currently 12.6 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 March 2015 however, Apartments took up 45.4%
Detached (1-3 Bed)
50%
of the market, Semi-detached Houses took up
40% Apartments (4-6 Bed)

30%
21.9% of the market and Detached Houses took up
Semi-detached (4-6 Bed)
20% 32.7% of the market.
Detached (4-6 Bed)
10%
0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

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
2015

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

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

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
2014 Q3
2015 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
2014 Q3
2015 Q1
0
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
2014 Q3
2015 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 4.14 times since 2001, a 1.6% fall in the last quarter and a 4.1% rise in
the last year. The average price for a Detached House is currently 36.4 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 30,000 40%
ASking Price KSH.s 1000s

400 25,000 30%

350
Index 2000 =100

20,000 20%
300
15,000 10%
250
200 10,000
0%
150 5,000
-10%
100 0
-20%
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
2014 Q3
2015 Q1

50
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
2014 Q3
2015 Q1
0
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
2014 Q3
2015 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 3.32 times since 2001, a 2.3% rise in the last quarter and a 10.1%
rise in the last year. The average price for a Semi-detached House is currently 21.7 million up from 6.5 million in Dec 2000.

The Hass Sales Index Annual Average Annual % Change

Apartments Apartments Apartments
50%
450 22,000
20,000 40%
ASking Price KSH.s 1000s

400
18,000
350 16,000 30%
Index 2000 =100

300 14,000 20%

12,000
250 10,000
8,000 10%
200
6,000 0%
150 4,000
100 2,000 -10%
0
50 -20%
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
2014 Q3
2015 Q1

0
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
2014 Q3
2015 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
2014 Q3
2015 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 2.69 times since 2001, a 1.5% rise in the last quarter and an 12.3% rise in the
last year. The average price for an Apartment is currently 14.0 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
2015

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 3.48 times since 2001
350
300 • The index shows rents have risen by 1.4% in the last
Index 2000 =100

250 quarter but have risen by 8.8% in the last year.

200
150
100
50
0
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
2014 Q3
2015 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.
250
• The average rental for a property has gone from
ASking Price KSH.s 1000s

200 Kshs. 38,516 in December 2000 to Kshs. 134,038 in

150 March 2015
100 • The average rent for a 4-6 bedroom property is
50 currently Kshs. 219,206
0 • The average rent for a 1-3 bedroom property is
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
2014 Q3
2015 Q1

currently Kshs. 74,401

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 March 2015 however, Apartments took up 60.2%
Detached (1-3 Bed)
50%
of the market, Semi-detached Houses took up
40% Apartments (4-6 Bed)

30% 12.1% of the market and Detached Houses took up

Semi-detached (4-6 Bed)
20% 27.7% of the market.
Detached (4-6 Bed)
10%
0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

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
2015

The Hass Rental Index Annual Average Annual % Change

Detached Houses Detached Houses 50% Detached Houses
400 300 40%

ASking Price KSH.s 1000s

350 250 30%
300 200
Index 2000 =100

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

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
2014 Q3
2015 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
2014 Q3
2015 Q1
0
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
2014 Q3
2015 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 3.61 times since 2001, a 1.7% rise in the last quarter and a 8.6% rise in
the last year. The average rental for a Detached House is currently Kshs. 205,686 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%
300 150
Index 2000 =100

20%
250
100 10%
200
50 0%
150
100 -10%
0
50 -20%
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
2014 Q3
2015 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
2014 Q3
2015 Q1
0
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
2014 Q3
2015 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 3.35 times since 2001, a 2.2% rise in the last quarter and a 10.0% rise in
the last year. The average rental for a Semi-detached House is currently Kshs. 143,176 up from Kshs. 42,688 in December 2000.

The Hass Rental Index Annual Average Annual % Change

Apartments Apartments Apartments
50%
400 160 40%
ASking Price KSH.s 1000s

350 140 30%

300 120
Index 2000 =100

100 20%
250 80 10%
200 60
40 0%
150
20 -10%
100
0
50 -20%
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
2014 Q3
2015 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
2014 Q3
2015 Q1

0
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
2014 Q3
2015 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 3.33 times since 2001, 0.4% rise in the last quarter and a 8.4% rise in the last
year. The average rent for an Apartment is currently Kshs. 77,388 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