The H ass Property

INDEX
QUARTER TWO REPORT
2015

Analysts caution higher lending rate may affect

renewed up-cycle of property prices
• House sales prices bounced back in Q2 after the dip of the first quarter of 2015. Asking prices rose 2.2 per cent in all
properties in the 2015 second quarter, with marginal rise in detached house segment
• Analysts caution that the recent decision to increase the Central Bank Rate (CBR), for the first time in almost four years
by 3 points, may negatively affect price growth trends in the first half of 2016. Historically high lending rates have led to
market stagnation and a rise in demand for rental property
• Rent accelerated by 2.4 per cent in the quarter across all segments. Rents for semi-detached houses rose more sharply,
up 7.8 per cent. Apartments and detached houses recorded a 1.1 and 1.2 per cent increase in rents respectively
• Owners of semi-detached houses continue to earn the highest rental yields, capped at 7.96 per cent by the end of June
2015.

Index Highlights:

SALES AND RENTAL INDEX YEAR TO Q2 The Hass Sales Index The Hass Rental Index

380.0 360.0
370.0 350.0
Index 2001 Index 2001
= 100 360.0 = 100 340.0
350.0 330.0
340.0 320.0
330.0 310.0
2014 Q2

2014 Q3

2014 Q4

2015 Q1

2015 Q2
2014 Q2

2014 Q3

2014 Q4

2015 Q1

2015 Q2

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

All Properties 2.2% 7.5%

Detached Houses 0.6% 4.1%

Semi-detached Houses 4.8% 11.7%
Apartments 5.1% 16.5%
* 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 2.4% 8.5%
Detached Houses 1.2% 7.4%
Semi-detached Houses 7.8% 14.9%
Apartments 1.1% 6.3%
* 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 TWO REPORT
2015

Nairobi, 9th July 2015: HassConsult today unveiled the results of its second quarter property price indices, revealing a
take-off in asking prices for properties, increased let prices, and a renewal of the high returns on investment in the
Kenyan housing market.

The rise in property sales prices had been slow, overall, in the previous quarter - depressed by a 1.6 per cent drop in asking
prices for detached houses - to generate an overall fall of 0.4 per cent across the property market.

“After a lull in the first quarter, the market has shown positive movements in the three months to June 2015. As a result of
increased buyer activity, the property market is moving into a new period of take-off in sales prices, rents and investment
returns,” said Ms Sakina Hassanali, Head of Research and Marketing at HassConsult.

Asking prices rose 2.2 percent in all properties in the 2015 second quarter. Semi-detached houses and apartments
recorded the highest sales increase, by 4.8 per cent and 5.1 per cent respectively. The Hass Property Index reveals that
the increase in buyer activity in the first quarter catapulted the surge in asking prices for all property, following increased
enquiries and sales closures in the quarter.

HassConsult has expressed caution in awaiting the overall effect of the recent decision to implement two increases in
recent weeks of the Central Bank Rate (CBR) amounting to 11.5 percent. This increase is the first one seen in nearly four
years. Historically, property development and investment in lower cost areas and in lower cost housing developments
has either stagnated or declined when lending rates have risen as the cost of lending is too high both for developers and
for buyers.

“Development Dollars were routed to high end property investments during the times of high lending rates,” said Ms.
Hassanali, “as interest costs were prohibitive for lower cost housing buyers and this in turn saw a rise in demand for rental
property and a subsequent increase in rental prices.”

“Rents in semi-detached houses rose by 7.8 per cent in the last three months, in what is a steep and continuous upward
trend. However, asking rents in apartments had a marginal growth of 1.1 per cent while detached houses recorded a
positive growth of 1.2 per cent in the second quarter,” said Ms Hassanali.

“Landlords are currently earning over 23 per cent returns annually on let apartments in the year ending June 2015 –
which is the highest in the category since August 2009. Likewise semi-detached and detached houses have recorded the
highest returns since 2011 of 19.7 per cent and 10.8 per cent respectively,” said Ms Hassanali.

The Hass composite house price index is based on 6500 property price records per quarter. Over the five years since its
launch has tracked more than 110,000 house price records from across Kenya.

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 TWO 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 3.72 times since
350 2000.
Index 2000 =100

300
• The index shows a property price rise of 2.2% in the
250
200 last quarter and a 7.5% rise in the last year.
150
100
50
0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 26.7 million in June

30,000
25,000 2015.
20,000
15,000 • The average value for a 4-6 bedroom property is
10,000 currently 40.2 million.
5,000
0 • The average value for a 1-3 bedroom property is
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

currently 12.9 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 June 2015 however, Apartments took up 45.4% of
Detached (1-3 Bed)
50%
the market, Semi-detached Houses took up 21.9%
40% Apartments (4-6 Bed)

30% of the market and Detached Houses took up 32.7%

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

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 TWO REPORT
2015

The Hass Sales Index Annual Average Annual % Change

Detached Houses Detached Houses 50% Detached Houses
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
250 25,000 10%
20,000
200 15,000 0%
150 10,000
5,000 -10%
100 0
50 -20%

2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 4.16 times since 2001, a 0.6% rise in the last quarter and a 4.1% rise in
the last year. The average price for a Detached House is currently 36.6 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 20,000
Index 2000 =100

300 20%
15,000
250 10%
200 10,000
0%
150 5,000
-10%
100 0
-20%
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

50
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 3.48 times since 2001, a 4.8% rise in the last quarter and 11.7%
rise in the last year. The average price for a semi-detached house is currently 22.8 million up from 6.5 million in Dec 2000.

The Hass Sales Index Annual Average Annual % Change

Apartments Apartments Apartments
50%
450 24,000 40%
22,000
ASking Price KSH.s 1000s

400 20,000 30%

350 18,000
Index 2000 =100

16,000 20%
300 14,000
12,000 10%
250 10,000
200 8,000
6,000 0%
150 4,000
2,000 -10%
100 0
50 -20%
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 2.83 times since 2001, a 5.1% rise in the last quarter and an 16.5% rise in the
last year. The average price for an Apartment is currently 14.75 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 TWO 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
350
• Rents have increased by 3.57 times since 2001
300 • The index shows rents have risen by 2.4% in the last
Index 2000 =100

250 quarter and have risen by 8.5% in the last year.

200
150
100
50
0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 137,311 in June
150 2015.
100 • The average rent for a 4-6 bedroom property is
50 currently Kshs. 222,685
0 • The average rent for a 1-3 bedroom property is
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

currently Kshs. 75,531

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 June 2015 however, Apartments took up 60.2% of
Detached (1-3 Bed)
50%
the market, Semi-detached Houses took up 12.1%
40% Apartments (4-6 Bed)

30% of the market and Detached Houses took up 27.7%

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

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 TWO 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
-10%
100 0
-20%

2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
50

2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 3.66 times since 2001, a 1.2% rise in the last quarter and a 7.4% rise in
the last year. The average rental for a Detached House is currently Kshs. 208,180 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
300
Index 2000 =100

20%
250 100 10%
200
50 0%
150
100 -10%
0
50 -20%
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 3.62 times since 2001, a 7.8% rise in the last quarter and a 14.9% rise in
the last year. The average rental for a Semi-detached House is currently Kshs. 154,313 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 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

0
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q2
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2

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 3.37 times since 2001, 1.1% rise in the last quarter and a 6.3% rise in the last
year. The average rent for an Apartment is currently Kshs. 78,271 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