Property prices in Kenya's capital Nairobi soared last year amid ongoing infrastructure developments, the growth of the middle-class, increased rural to urban migration and rising investor speculation, it has been reported.
According to an investigation by The Standard, Kenya's oldest newspaper, prices of the popular eighth-of-an acre residential land plots nearly doubled in Nairobi and its environs last year.
It was reported that at Nairobi's Ruaka, prices of the plots surged between 2009 and last year from Sh4 million (£30,000) to Sh6 million, in Kahawa West from Sh1.6 million to Sh2 million and in Mlolongo from Sh1 million to Sh1.6 million.
Aba Eban, managing partner at Tom & Company Agencies, a Kisumu-based registered land and estate agent, predicted that the huge demand for middle-class homes will push up demand by at least 35 per cent this year.
Speaking to the newspaper, he also pointed to rising investor speculation in the booming sector, stating: "There is a general increase in the number of speculators following an influx of institutional investors in residential real estate."