Kenyan real estate prices drop

Residential property prices in Kenya slowed in real terms in the second quarter of 2011 when rising inflation hit buyers' hard, according to the latest HassConsult real estate index.

The company, which conducts the only property pricing index in east Africa's largest economy, said average house prices rose by 1.9% in the second quarter compared with 4.4% in the first quarter.

‘Where houses sellers pushed asking prices up by 4.4% in the first quarter of this year, the average rise across all types of properties was just 1.9% between April and June,’ said Farhana Hassanali, property development manager at HassConsult.

‘It is reflecting an increase that was below inflation and thus a fall in house prices in real terms,’ added Hassanali.

Source: NUWireInvestor.com