QUARTER FOUR REPORT

2010

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 204 765/0733 629 786 | E: info@hassconsult.co.ke
 QUARTER FOUR REPORT
2010

Real estate prices rising,

as apartment sellers push for more
Rentals now recovered from falls in 2009/ 2010, pushing up across all market segments
!
But rental yields still under threat as house prices move faster. Rental yields falling in all categories. But still
!
strongest in townhouses and maisonettes
Real growth in closing sales prices, up 3.9 per cent in Q4 2010
!
However, asking prices growing much faster for apartments, at 6.4 per cent, rising even more sharply in
!
Nairobi while asking prices for houses and villas rose 2.9 per cent in Q4, and townhouses 3.4 per cent

Annual Index Highlights:

Closing prices on property sales rose by 5.8 per cent in 2010 up from a 0.8 per cent growth in 2009
!
Asking prices for apartments saw a downwards correction over the year, down 3.4 per cent, but year-end
!
marked a renewed push for higher pricing
Standalone houses rose the most sharply in asking prices over the year, up 9.4 per cent, but with the rate of
!
increase slowing towards year-end
Townhouses reported the most steady gains in asking prices, up 4.8 per cent over the year
!

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

The Hass Index +3.9 % +5.8 %

*The Hass Index is a measure of closing sales prices

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

Stand Alone Houses +2.9 % +9.7 %

Townhouses +3.4 % +4.8 %

Apartments +6.4 % -3.4 %
*The Hass Composite Sales Index is a measure of asking sales prices

HEADLINES - HASS COMPOSITE LETTINGS INDEX % Quarter in Year % Change in Year

Stand Alone Houses +2.2 % +9.4 %

Townhouses +1.8 % -0.5 %

Apartments +2.6 % -4.5 %
*The Hass Composite Lettings Index is a measure of asking rental prices

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 204 765/0733 629 786 | E: info@hassconsult.co.ke
 QUARTER FOUR REPORT
2010

The Kenyan property market moved into clear price rises in the final quarter of 2010. The prices of actual house
sales, primarily in Nairobi and covered by the Hass Sold index, rose by 3.9 per cent in the final three months of
last year, after being almost flat for the first three-quarters of the year.

For 2010 as a whole, closing prices on property sales rose by 5.8 per cent.

Asking prices delivered a more mixed picture, as they pushed forwards and then corrected across the year. The
strongest rise in asking prices came in standalone houses, up 9.4 per cent in 2010, followed by town houses up
4.8 per cent. However, the asking prices for apartments fell by 3.4 per cent across 2010.

The final quarter of the year saw relatively slower rises in asking prices for standalone houses, up 2.9 per cent
on the previous quarter, and for town houses and maisonettes, up by 3.4 per cent. This marked a degree of
correction in top-end asking prices, which grew by sharply more than closing prices earlier in the year.

However, the asking prices for apartments moved up 6.4 per cent in the quarter, and even more sharply within
Nairobi, continuing to reflect the hunger to achieve better returns in this segment.

“We believe this renewed push to achieve better sales prices for apartments reflects the pent-up demand by
owners who bought apartments as investments and have found them hard to sell for more. We do not yet see
anything like this level of price growth in actual apartment sales,” said Farhana Hassanali of HassConsult.

The rental market, which has been quite depressed until now, saw some small price rises, with rental prices
rising most strongly for apartments, up 2.6 per cent on the previous quarter, followed by high-end houses and
villas, where rents rose by 2.2 per cent.

The slowest rental growth was for town houses and maisonettes, up by 1.8 per cent in the quarter.

With house prices still rising faster than rents, yields continued to come under pressure, leading to lower levels
of returns on their investments for landlords.

Overall, the fourth quarter of last year saw the most robust price rises in real estate since the global recession.

‘'Although we may not expect to see the exponential growth we saw in 2007-08, it is a sign that the property
market is moving into a steady level of growth in an increasingly sophisticated market.’ said Farhana Hassanali.

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 204 765/0733 629 786 | E: info@hassconsult.co.ke
 QUARTER FOUR REPORT
2010

The Hass Composite Sales Index Annual Average Annual % Change

Stand Alone Houses Stand Alone Houses 70% Stand Alone Houses
60%
400 40,000
50%

ASking Price KSH.s 1000s

350 35,000
Index 2000 =100

40%
300 30,000 30%
250 25,000 20%
200 20,000 10%
150 15,000 0%
100 10,000 -10%
50 5,000 -20%
0

2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4
0

2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

1 to 3 Beds 4 to 6 Beds All

SNAP SHOTS:
Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.
!

Property values for stand alone houses have increased by 3.6 times since 2001, a 2.9% rise in the last quarter and an 9.7% rise in
!
the last year. The average price for a stand alone house is currently 29.01 million up from 8 million in December 2000.

The Hass Composite Sales Index Annual Average Annual % Change

Town Houses 25,000 Town Houses 70% Town Houses
ASking Price KSH.s 1000s

60%
400 20,000 50%
350
Index 2000 =100

40%
300 15,000 30%
250 20%
200 10,000 10%
150 0%
100 5,000 -10%
50 -20%
0 0
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

1 to 3 Beds 4 to 6 Beds All

SNAP SHOTS:
Town houses include townhouses and maisonettes that are semi-detached or terraced.
!

Property values for town houses have increased by 2.63 times since 2001, a 3.4% rise in the last quarter and an 4.8% rise in the
!
last year. The average price for a town house is currently 16.81 million up from 6.37 million in December 2000.

The Hass Composite Sales Index Annual Average Annual % Change

70%
Apartments 18,000 Apartments Apartments
ASking Price KSH.s 1000s

16,000 60%
400 50%
14,000
350
Index 2000 =100

12,000 40%
300
10,000 30%
250
200 8,000 20%
150 6,000 10%
100 4,000 0%
50 2,000 -10%
0 0 -20%
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

1 to 3 Beds 4 to 6 Beds All

SNAP SHOTS:
Apartments include apartments, duplexes and triplexes.
!

!Property values for apartments have increased by 2 times since 2001, a 6.4% rise in the last quarter and an 3.4 % fall in the last
year. The average price for an apartment is currently 10.65 million up from 5.1 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 204 765/0733 629 786 | E: info@hassconsult.co.ke
 QUARTER FOUR REPORT
2010

The Hass Composite Lettings Index Annual Average Annual % Change

70%
Stand Alone Houses 200 Stand Alone Houses Stand Alone Houses

ASking Price KSH.s 1000s

180 60%
400 160 50%
350
Index 2000 =100

140 40%
300 120 30%
250 100
200 20%
80
150 60 10%
100 40 0%
50 20 -10%
0 0 -20%

2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4
1 to 3 Beds 4 to 6 Beds All

SNAP SHOTS:
Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.
!

Rental values for stand alone houses have increased by 2.7 times since 2001, a 2.2% rise in the last quarter and an 9.4% rise in
!
the last year. The average rental for a stand alone house is currently Kshs. 148,787 up from Kshs.53,602 in December 2000.

The Hass Composite Lettings Index Annual Average Annual % Change

70%
Town Houses 140 Town Houses Town Houses
ASking Price KSH.s 1000s

60%
400 120
50%
350 100
Index 2000 =100

40%
300
80 30%
250
200 60 20%
150 10%
40
100 0%
20 -10%
50
0 0 -20%
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2010 Q4

1 to 3 Beds 4 to 6 Beds All

SNAP SHOTS:
Town houses include townhouses and maisonettes that are semi-detached or terraced.
!

Rental values for town houses have increased by 2.65 times since 2001, a 1.8% rise in the last quarter and an 0.5% fall in the last
!
year. The average rental for a town house is currently Kshs. 100,125 up from Kshs. 37,700 in December 2000.

The Hass Composite Letting Index Annual Average

400 (Apartments) 100 (Apartments)
ASking Price KSH.s 1000s

350 90
80
300 70
Index 2000 =100

60
250
50
200 40
30
150
20
100 10
0
50
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3

0
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3

1 to 3 Beds 4 to 6 Beds All

SNAP SHOTS:
Apartments include apartments, duplexes and triplexes.
!

!Rental values for apartments have increased by 2.66 times since 2001, a 2.6% rise in the last quarter and an 4.5% fall in the last
year. The average rent for an apartment is currently Kshs. 57,656 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 204 765/0733 629 786 | E: info@hassconsult.co.ke