The H ass Property

INDEX
QUARTER TWO REPORT
2014

Mid-market property surges

on rising rent yields
• House price rises were more subdued in Q2 , held down by a dip in asking prices for top-of-the-market detached houses
• Detached house prices fell by 0.3 per cent on Q1, and 2.1 per cent on a year earlier, in a price correction following from
the more than 10 per cent post-election surge in detached house prices
• Strongest price growth continued to be for semi-detached houses, up 3.3 per cent in Q2, and 6.7 per cent on year earlier
• Apartments also consolidated price gains of 2014, with a further 1.3 per cent rise in asking prices in the second quarter
• However, rental prices continued to rise far more rapidly than sales prices, up an overall 2.7 per cent on Q1.
• Rents rose more strongly for semi-detached houses, up 3.2 per cent, and apartments, also up 3.2 per cent
• Demand for both buying and renting was concentrated in the mid market, in semi-detached houses and apartments
• This reflected the stronger performance in rental yields in the mid market, with semi-detached houses historically, and
currently, recording the strongest rental yields, at 7.77 per cent in Q2

Index Highlights:

SALES AND RENTAL INDEX YEAR TO Q1 The Hass Sales Index The Hass Rental Index

350.0 340.0
330.0
Index Index 320.0
2001 = 2001 =
340.0 100
310.0
100
300.0
290.0
330.0 280.0
2013 Q2

2013 Q3

2013 Q4

2014 Q1

2014 Q2
2013 Q2

2013 Q3

2013 Q4

2014 Q1

2014 Q2

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

All Properties 0.6% 0.05%

Detached Houses -0.3% -2.1%

Semi-detached Houses 3.3% 6.7%
Apartments 1.3% 1.5%
* 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 2.7% 9.7%
Detached Houses 2.4% 8.5%
Semi-detached Houses 3.2% 16.0%
Apartments 3.2% 8.2%
* 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
2014

Hass Consult today unveiled the Hass property price indices for the second quarter, revealing rising price strength in the
mid-market, driven by the recovery in rental yields as a result of the two year trend of rent rises ahead of sales price
growth.
The rise in property sales prices slowed, overall, in the first quarter - depressed by a 0.3 per cent drop in asking prices for
detached houses - to rise by 0.6 per cent across the property market.
This brought house asking prices to the same level as a year earlier, but the plateau in overall pricing reflected a mixed
underlying performance - with a 2.2 per cent fall in detached house prices over the last 12 months offset by a 6.7 per cent
rise in semi-detached house prices and a 1.5 per cent increase in asking prices for apartments.
The ongoing and accelerating strength in the market for semi-detached houses comes at a time when interest rates are
expected to fall following the placement of the government's EuroBond - and the consequent easing of public demand
for domestic debt.
With domestic bond returns currently running at 9.18 per cent, and bond returns predicted to fall, improved rental yields
are now gaining their lustre as an investment, spurring forward the buy-to-rent market.
Historically, semi-detached houses have recorded the best rental yields in the Kenyan property market, peaking at 9.69
per cent in December 2007, before falling - on swift house price rises - to bottom at 5.95 per cent in August 2011.
However, the marked surge in rental prices in the last two years, up a further 2.7 per cent in the second quarter, has
delivered steady gains in rental yields.
Rents for semi-detached houses rose a further 3.2 per cent in the second quarter of 2014, taking rental yields to 7.77 per
cent.
The 3.2 per cent rise in apartment rents in Q2 saw rental yields for apartments recover to 7.47 per cent.
For detached houses, which have traditionally enjoyed yields at least one percentile point lower than semi-detached
houses, rent rises in the second quarter of 2.4 per cent delivered a rental yield by the end of the quarter of 6.55 per cent.
"The correction in the relationship between rents and house prices was a necessary one, following the run-up in property
prices from 2008 to 2011," said Ms Sakina Hassanali, Head of Research and Marketing at Hass Consult. "With the interest
rate environment now expected to shift, the restoration of property rental yields back into the 7 per cent to 8 per cent
range is once again attracting new investor interest as a long-term investment."

For more information, please contact:

Sakina Hassanali
Head of Marketing & Research
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
2014

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 3.46 times since
350 2000.
Index 2000 =100

300
250
• The index shows a property price rise of 0.6% in the
200 last quarter and a 0.05% rise in the last year.
150
100
50
0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

SNAP SHOTS:
Annual Average • The annual average is representative of the average
All Property Types price of all properties offered for sale in Kenya.
35,000
• The average value for a property has gone from 7.1
ASking Price KSH.s 1000s

30,000
25,000 million in December 2000 to 24.8 million in June
20,000 2014.
15,000
• The average value for a 4-6 bedroom property is
10,000
5,000 currently 34.9 million.
0 • The average value for a 1-3 bedroom property is
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

currently 11.6 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 2014 however, apartments took up
Detached (1-3 Bed)
50%
41.7% of the market, semi-detached houses took
40% Apartments (4-6 Bed)

30% up 24.0% of the market and detached houses took

Semi-detached (4-6 Bed)
20% up 34.3% of the market.
10% Detached (4-6 Bed)

0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

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
2014

The Hass Sales Index Annual Average Annual % Change

Detached Houses Detached Houses Detached Houses
50%
450 50,000 40%

ASking Price KSH.s 1000s

400 45,000
40,000 30%
350 35,000
Index 2000 =100

300 30,000 20%

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

2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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
0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

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 4.00 times since 2001, a 0.3% fall in the last quarter and a 2.1% fall in
the last year. The average price for a Detached House is currently 35.2 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 25,000 40%
ASking Price KSH.s 1000s

400
20,000 30%
350
Index 2000 =100

300 15,000 20%

250 10,000 10%
200 0%
150 5,000
-10%
100 0
-20%
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

50
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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
0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

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 3.11 times since 2001, a 3.3% rise in the last quarter and a 6.7%
rise in the last year. The average price is currently 20.4 million up from 6.5 million in December 2000.

The Hass Sales Index Annual Average Annual % Change

Apartments Apartments 50%
Apartments
450 18,000 40%
ASking Price KSH.s 1000s

400 16,000
14,000 30%
350
Index 2000 =100

12,000 20%
300 10,000
250 8,000 10%
200 6,000
4,000 0%
150 2,000
100 -10%
0
50 -20%
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

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 2.43 times since 2001, a 1.3% rise in the last quarter and a 1.5% rise in the
last year. The average price for an Apartment is currently 12.7 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
2014

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 3.29 times since 2001
Index 2000 =100

300 • The index shows rents have risen by 2.7% in the last
250 quarter but have risen by 9.7% in the last year.
200
150
100
50
0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

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 Kshs. 126,576 in
150 June 2014.
100 • The average rent for a 4-6 bedroom property is
50 currently Kshs. 196,041
0 • The average rent for a 1-3 bedroom property is
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

currently Kshs. 72,030

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%
90% • In 2001, Apartments took up 45.3% of the market,
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 2014 however, Apartments took up
50% Detached (1-3 Bed)

40% 54.3% of the market, Semi-detached Houses took

Apartments (4-6 Bed)
30% up 20.0% of the market and Detached Houses took
Semi-detached (4-6 Bed)
20% up 25.7% of the market.
10% Detached (4-6 Bed)

0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

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
2014

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%
Index 2000 =100

300 200 20%

250 150 10%
200 100
0%
150 50
100 -10%
0
50 -20%

2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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
0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

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 3.40 times since 2001, a 2.4% rise in the last quarter and an 8.5% rise in
the last year. The average rental for a Detached House is currently Kshs. 193,780 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
Index 2000 =100

300
20%
250 100 10%
200
150 50 0%
100 -10%
0
50 -20%
2003 Q4
2004 Q2
2004 Q4
2005 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

2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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
0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

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 3.15 times since 2001, a 3.2% rise in the last quarter and an 16% rise in
the last year. The average rental is currently Kshs. 134,350 up from Kshs. 42,688 in December 2000.

The Hass Rental Index Annual Average Annual % Change

Apartments Apartments Apartments
50%
400 140 40%
ASking Price KSH.s 1000s

350 120
30%
100
Index 2000 =100

300
80 20%
250
60 10%
200
40 0%
150 20
100 -10%
0
50
2003 Q4
2004 Q2
2004 Q4
2005 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

-20%
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

0
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 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

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 3.17 times since 2001, 3.2% rise in the last quarter and a 8.2% rise in the last
year. The average rent for an Apartment is currently Kshs. 73,652 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