The Nakuru Property Price Explosion: The Driving Forces

The increasing population in Nakuru County has led to increased demand for housing, which has led to increase in property prices and rent.

The Nakuru Property Price Explosion: The Driving Forces
  • In 2021, Nakuru town got elevated to city status, making it the fourth city in Kenya.
  • Nakuru city has since started redefining its boundaries and incorporating plans to improve its housing, infrastructure, water, environmental, and economic areas.
  • The new city boundaries have seen the conversion of more agricultural land into residential and commercial areas, which tend to fetch a higher price.

As of 2023, the current population of Nakuru is 422,000, a 3.43% increase from 2022. The city also experienced a 3.29% increase in 2022 and a 3.13% increase in 2021.

This population explosion has led to an increased demand for accommodation and other amenities.

The Nakuru Property Price Explosion: The Driving Forces
Nakuru population has increase by 3% annually since 2021

Why Is Nakuru Gaining Popularity?

Multinational organizations such as private hospitals have also set up branches in the region to cater to the growing demands of the inhabitants ever since Nakuru was classified as a city. This has led to increased job opportunities, and a further increase in population.

Since 2020, an exodus of remote working individuals migrating from Nairobi in search of larger living spaces and better quality life at an affordable cost has seen the resettlement of these individuals in Nakuru.

READ ALSO: Understanding the National Housing Development Fund Kenya

The search for towns providing affordable living standards by retirees and families has also contributed to this population explosion. Despite acquiring city status, Nakuru is still relatively affordable compared to Nairobi and its environs.

Many people favor Nakuru as their forever home location. This has resulted to a demand for more luxurious homes compared to prior market demand.

Palatial mansions and semi-detached homes mushrooming in Nakuru warrant a higher selling price, and this has contributed to the skyrocketing property prices in the region.

The Nakuru Property Price Explosion: The Driving Forces

Nakuru’s Real Estate Market Is Booming

In 2022, Kings Developers broke ground on Nakuru’s largest real estate development. The project comprises 380 three-bedroom units, 180 two-bedroom units, and 45 one-bedroom units. The company also developed another project, which sold out in a few months. This shows an increased demand for properties to buy in Nakuru.

“Delineation of urban boundaries will guide service delivery while implementing integrated strategic urban development plan and preparation of sector-specific plans,” according to Nakuru county governor Susan Kihika.

Other major developments, such as Nakuru Meadows, also indicate the growing housing demand in the city. National Housing Corporation is also set to break ground on an affordable housing project in the city in conjunction with the county government.

READ ALSO: Ardhisasa: Kenya’s Newest Land Information Management Tech

Land-selling companies such as Optiven, Username Investments, and many more have also started buying and selling subdivided land to prospective buyers. This demand has sharply increased land prices, especially in prime areas such as Naka, Section 58, Milimani, London, and Kiamunyi.

Nakuru has been undergoing an expansion of its boundaries to cater to the growing demand for housing. This has led to an increase in land prices in the newly rezoned areas.

Nixon Aswani - Content Strategist
Notification Bell
Get expert advice and popular properties in your inbox weekly.
Check your inbox for your welcome email.
Notification Bell