In Q2 of 2020, rent prices in Nairobi have continued to drop, new data by Hass consult has revealed. This is as a result of the Coronavirus (Covid-19) which has affected the global economy massively.
According to Hass consult, rent prices dropped by 0.2pc in the period under review with 7pc of the tenants surveyed asking their landlords for rent discounts of between 25 and 30pc.
“COVID-19 has resulted in the closure of many industries across the economy and thereby reducing incomes of business owners and employees who are in turn exerting pressure on landlords to reduce rents,” said the Head of Development Consulting and Research at Hass Consult Sakina Hassanali.
The area that registered the biggest quarterly drop in the period under review is Donholm in rents for houses at 4.8pc while rent prices in Parklands went up by 2.4pc over the quarter and 7.1pc over the year.
House sales prices have remained relatively flat as developers and other sellers avoid generous discounts on properties or increasing prices as they wait to see how the economy will perform once it is fully reopened.
“This is the first full quarter under COVID-19 showcasing the property market under the government’s strictest social distancing measures which have since been eased. Property prices remain stable as most sellers, presumably those without any urgent cash flow requirements, are avoiding making rash decisions that will cost them in the long run,” Hassanali added.
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