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Ongata Ronga Tops Nairobi Real Estate Investment List, Beating Runda & Lavington

Posted by Loyd Mokaya on 8 February 2024

In the bustling city of Nairobi, a new real estate champion has emerged. Ongata Rongai, a satellite town on the outskirts of Nairobi, has been declared the most profitable estate in the city, according to a recent report by HassConsult.

The Profitability of Ongata Rongai

Released on Monday, February 5, the report revealed that Ongata Rongai offered the best rental returns on an annual basis, at a rate of 15.4 per cent. This implies that investors who put up a Ksh1 million investment in Ongata Rongai rentals reaped profits of Ksh154,000 in 2023.

Comparing Other Estates

Other estates that recorded impressive returns were Athi River at 15 per cent, Kitengela (11.6 percent), Loresho (11.5 per cent) and Nyari (9.9 per cent). In stark contrast, high-end estates including Runda and Lavington recorded minimal growth in house prices, with a change of 2.5 per cent and 1.0 per cent over the past year respectively.

The Investment Landscape

The returns from Ongata Rongai competed favourably with those of Treasury bills and bonds whose net returns ranged from 9.5 per cent to 17 per cent in 2023. However, concerns about the safety of bonds due to the government’s high debt exposure saw some investors seek alternative investments, which included property.

Infrastructure Development

The attractiveness of Ongata Rongai as an investment destination has been further enhanced by infrastructure development. 

President William Ruto launched the construction of the stretch linking Bomas of Kenya and Kona Baridi on April 20 last year. 

This has led to Ongata Rongai being a front runner in quarterly price growth at 8.2 per cent, displacing quarter two leader Thika as developers anticipate improved access due to the resumption of the dualling of the Bomas-Rongai-Kiserian road.

In Conclusion

Ongata Rongai is a promising investment destination for real estate investors, offering impressive returns and benefiting from significant infrastructure development. 

As Nairobi continues to grow and evolve, it will be interesting to see how the real estate landscape shifts and which areas will emerge as the new investment hotspots.

Is Ongata Rongai Right for You?

If you are considering investing in real estate in Nairobi, Ongata Rongai is definitely worth considering. However, it is important to do your research and carefully consider your investment goals before making any decisions.

Here are some things to keep in mind:

  • Location: Ongata Rongai is located on the outskirts of Nairobi, so it is important to factor in the commute time if you will be living or working in the city center.
  • Amenities: Ongata Rongai is still developing, so it may not have all the amenities that you are looking for.
  • Investment potential: While Ongata Rongai has seen strong rental returns in recent years, there is no guarantee that this will continue in the future.

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