Factors That Affect Property Values in Kenya

✅ Factors That Affect Property Values in Kenya

1. Location

• Proximity to CBDs, schools, hospitals, roads, and shopping centres increases value.
• Properties in high-demand zones like Westlands, Kilimani, Karen, and Runda command higher prices.
• In peri-urban areas, value rises when infrastructure projects (e.g., roads, bypasses) are introduced.

2. Infrastructure and Amenities

• Good road access, electricity, water, drainage, and internet connectivity increase value.
• Nearby developments like malls, schools, and hospitals can boost desirability.

3. Land Use and Zoning Regulations

• Property values depend on whether the land is zoned for residential, commercial, agricultural, or mixed-use.
• Rezoning from agricultural to commercial often increases value drastically.

4. Size and Shape of the Land/Property

• Larger plots typically have higher value but price per square meter may reduce with size.
• Regularly shaped plots (square or rectangular) are often preferred for development.

5. Topography and Soil Conditions

• Flat, well-drained land is more valuable and easier to develop than sloped or swampy land.
• Soil type affects construction costs and thus, property appeal.

6. Legal Status and Title Deed

• Properties with clean, undisputed title deeds are more valuable.
• Encumbrances (disputes, caveats, or unpaid land rates) reduce value.

7. Security and Neighborhood Quality

• Areas with good security, low crime rates, and a reputation for being safe (e.g., gated communities) are more valuable.

8. Economic Conditions

• National and local economic trends, interest rates, inflation, and availability of mortgage financing affect property demand and value.

9. Demand and Supply Dynamics

• Where demand exceeds supply (e.g., in major towns), prices rise.
• Overbuilt areas (e.g., some satellite towns) may see value stagnation or decline.

10. Future Prospects

• Anticipated infrastructure, zoning changes, or commercial developments can raise current property values due to expected appreciation.

🧰 What Valuers Look for During Property Valuation

Professional valuers in Kenya assess a variety of aspects, including:

1. Title and Legal Documents

• Verify ownership, land tenure system, encumbrances, and legal usability of land.

2. Property Inspection

• Physical inspection of land, buildings, layout, construction quality, and any improvements (walls, driveways, boreholes, etc.)

3. Property Use and Income Potential

• For commercial properties: rental income, occupancy rate, and lease agreements.
• For residential: whether it’s owner-occupied, rented, or vacant.

4. Comparable Sales Data

• Use recent sale prices of similar properties in the area (Comparative Sales Method).

5. Market Trends

• Real estate market condition in the locality: demand, new developments, population growth, etc.

6. Valuation Approach

• Comparative Method (most common in residential properties)
• Income Capitalization Approach (for rental or investment properties)
• Cost Approach (for unique or specialized properties)