The H ass Property

INDEX

QUARTER ONE REPORT

2012

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
 The H ass Property

INDEX
QUARTER ONE REPORT
2012

Sellers push for higher prices in flat market,

as rents climb on spillover
• Closing prices in the middle and upper market remained subdued, down by 0.7 per cent on end-2011.
• There was a renewed push in higher asking prices, across all sectors of the market, up by 1.3 per cent overall.
• The strongest push for higher prices was for town houses and maisonettes, with asking prices rising 3.8 per cent on
the previous quarter
• There was also a renewed push for higher prices for standalone houses, 2.9 per cent higher than at end-2011
• Asking prices for apartments remained largely static, up just 0.4 per cent on end-2011.
• Asking rentals went up across the board, with a 5 per cent increase on end-2011 for standalone house rentals, which
had remained flat for all of last year
• A 3.5 per cent rise in town house and maisonette asking rentals reversed some of the rental falls of last year
• At the lower end of the market, with apartments, asking rentals continued to climb strongly, up 5.6 per cent on end
- 2011 and 10.5 per cent on a year earlier.

Index Highlights:

SALES AND LETTINGS COMPOSITE INDEX YEAR TO Q1

Hass Sales Composite Index Hass Lettings Composite Index
320.0 270.0
Index 2001 = 100

Index 2001 = 100

260.0

310.0 250.0

240.0

300.0 230.0
2012 Q1

2012 Q1
2011 Q1

2011 Q2

2011 Q3

2011 Q4

2011 Q1

2011 Q2

2011 Q3

2011 Q4

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

All Properties +1.3 % +1.4 %

Stand Alone Houses +2.9 % +0.7 %

Townhouses +3.8 % +8.6 %

Apartments +0.4 % +4.5 %
*The Hass Composite Sales Index is a measure of asking sales prices and is now based on a mix adjusted method

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

All Properties +4.4 % +5.5 %

Stand Alone Houses +5.0 % +6.1 %

Townhouses +3.5 % -1.2 %

Apartments +5.6 % +10.5 %
*The Hass Composite lettings Index is a measure of asking rental prices and is now based on a mix adjusted method

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
 The H ass Property

INDEX
QUARTER ONE REPORT
2012

HassConsult today announces the results for the first quarter 2012 of its house price and rentals indices, delivering
further evidence of a solid housing sales market - despite the surge in interest rates and business downturn -
accompanied by renewed pushes by sellers for higher pricing.
The build-up of demand, against the backdrop of slow growth in house sales, is now evident in the rentals market, where
higher rents are being sought by landlords across all segments of the market, recouping 2011 losses in the upper end, and
continuing a relatively steep climb in the pricing of apartment rentals.
“The first quarter results have borne out our predictions that the soaring interest rates of last year, and current extremely
high interest rate levels, would have little impact on house prices, in a market with such an early-stage mortgage
component,” said Mrs Farhana Hassanali-Hashmani.
“With most of our housing market still being bought by cash buyers, in a profound situation of under-supply, buying and
sales closures remain steady, through recession and any setbacks in mortgage pricing,” she said.
“But as buyers have stalled or hesitated, in the belief that prices may fall, or waiting for lower interest rates, so the pent-
up demand is now fueling renewed rent rises, after some years of almost flat rental pricing across the middle and upper-
end market.”
The big impact of the interest rate rises is being felt on the supply side, not in dramatically suppressed demand, she said.
“Almost all developers have slowed building, postponed phases, or reduced the number of homes they are currently
constructing.”
“In a situation where we were still only seeing enough coming to market to feed growing demand - except in spots of
excessive build such as mid-Nairobi apartments - this now seems certain to translate into renewed house price rises in
one to two years' time, as new and upgrading buyers compete for a much reduced supply of new-builds.”
However, with HassConsult now forecasting continuing flat prices across the next 6 to 12 months followed by a surge on
short supply, current sellers pushed for higher pricing across all types of homes in the first quarter as they sought to
recoup higher costs in land, construction materials and for finance.
“The gap between asking prices and closure prices remains wider than it was before the real estate stabilization,” said
Mrs Hassanali-Hashmani.
“Only when that gap begins to close will there be any real headway for enhanced house prices, at which point, we can
hope for new developers to step back into the frame, and real estate activity to resume on the construction side - after the
body blow that has been delivered by the Government's monetary policy.”
Until that time, rental rises now seemed likely to continue to gather pace, said HassConsult.

For more information contact:

Farhana Hassanali-Hashmani
HassConsult
020 4446914/0722 204 765/0733629 786

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
 The H ass Property

INDEX
QUARTER ONE REPORT
2012

SNAP SHOTS:
TheThe
Hass
HassComposite Sales
Composite Sales Index
Index
! The Hass Composite Sales Index is representative of
AllAllProperty Types
Property Types
all property for sale in Kenya
400
350 ! Property values have increased by 3.10 times since
300 2000
Index 2000 =100

250 ! The index shows a property price rise of 1.3% in the

200 last quarter and an 1.4% rise in the last year.
150
100
50
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
2011 Q1
2011 Q3
2012 Q1

SNAP SHOTS:
Annual
Annual Average
Average
! The annual average is representative of the average
AllAllProperty Types
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
million in December 2000 to 22.3 million in March
25,000
2012.
20,000
! The average value for a 4-6 bedroom property is
15,000
currently 30.5 million.
10,000
5,000
! The average value for a 1-3 bedroom property is
currently 10.9 million.
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
2011 Q1
2011 Q3
2012 Q1

SNAP SHOTS:
Mix
Mix by Year
by Year
! The Mix by Year is a measure of the percentage that
AllAllProperty Types
Property Types each type of property represents in the market.
100%
! In 2001, apartments took up 23.5% of the market,
90%
80% Town Houses took up 24.5% of the market and
APT (1-3)(4-6 Bed)
Apartments
70% Stand alone houses took up 52% of the market.
60% THApartments
& M (1-3 (1-3)
Bed)
! In 2012 however, apartments took up 43.6% of the
50% H,B,C & V(4-6(1-3)
Town Houses Bed)
market, Town Houses took up 26.9% of the market
40%
APT
Town (4-6)
Houses (1-3 Bed)
and Stand alone houses took up 29.5% of the
30%
20% TH &Alone
Stand M Houses
(4-6)(4-6 Bed) market.
10% H,B,C & Houses
Stand Alone V (4-6)
(1-3 Bed)

0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

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
 The H ass Property

INDEX
QUARTER ONE REPORT
2012

TheThe
Hass
HassComposite Sales
Composite Sales Index
Index Annual
Annual Average
Average Annual
Annual % Change
Change
Sales
StandAlone
Alone Houses
Houses Stand
StandAlone Houses
Alone Houses 50% Stand
StandAlone Houses
Alone Houses
400 45,000 40%

ASking Price KSH.s 1000s

350 40,000
35,000 30%
300
Index 2000 =100

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

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
2011 Q1
2011 Q3
2012 Q1

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
2011 Q1
2011 Q3
2012 Q1
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
2011 Q1
2011 Q3
2012 Q1

1 to 3 Beds 4 to 6 Beds Mix Adj

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 3.61 times since 2001, a 2.9% rise in the last quarter and a 0.7% rise
in the last year. The average price for a stand alone house is currently 31.7 million up from 8.8 million in December 2000.

TheThe
Hass
HassComposite Sales
Composite Sales Index
Index Annual Average
Annual Average Annual % Change
Annual % Change
Town
Town Houses
Houses Town Houses
Town Houses 50% Town
Town Houses
Houses
400 25,000 40%
ASking Price KSH.s 1000s

350 20,000 30%

300
Index 2000 =100

15,000 20%
250
10,000 10%
200
150 5,000 0%
100 0 -10%
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
2011 Q1
2011 Q3
2012 Q1

50 -20%
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
2011 Q1
2011 Q3
2012 Q1
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
2011 Q1
2011 Q3
2012 Q1

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Town houses include townhouses and maisonettes that are semi-detached or terraced.
• Property values for town houses have increased by 2.88 times since 2001, a 3.8% rise in the last quarter and an 8.6% rise in the
last year. The average price for a town house is currently 18.9 million up from 6.5 million in December 2000.

TheThe
Hass
HassComposite Sales
Composite Sales Index
Index Annual
Annual Average
Average Annual % Change
Annual % Change
Apartments
Apartments Apartments
Apartments 50% Apartments
Apartments
400 18,000 40%
ASking Price KSH.s 1000s

350 16,000
14,000 30%
300
Index 2000 =100

12,000 20%
250 10,000
8,000 10%
200 6,000
4,000 0%
150
2,000 -10%
100
0
50 -20%
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
2011 Q1
2011 Q3
2012 Q1

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
2011 Q1
2011 Q3
2012 Q1

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
2011 Q1
2011 Q3
2012 Q1

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 2.23 times since 2001, a 0.4% rise in the last quarter and an 4.5% rise in the
last year. The average price for an apartment is currently 11.6 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 204 765/0733 629 786 | E: info@hassconsult.co.ke
 The H ass Property

INDEX
QUARTER ONE REPORT
2012

SNAP SHOTS:
TheThe
Hass Composite
Hass Lettings
Composite Lettings Index
Index
! The Hass Composite Letting Index is representative
AllAllProperty Types
Property Types of all property for rental in Kenya
400
400
! Rents have increased by 2.59 times since 2001
350
300 ! The index shows rents have risen by 4.4% in the
Index 2000 =100

250 last quarter but have risen by 5.5% in the last year.
200
150
100
50
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
2011 Q1
2011 Q3
2012 Q1

SNAP SHOTS:
Annual
Annual Average
Average
! The annual average is representative of the average
AllAllProperty Types
Property Types rent of all properties offered to let in Kenya.
160
! The average rental for a property has gone from
ASking Price KSH.s 1000s

140
120 Kshs. 38,516 in December 2000 to Kshs. 99,885 in
100 March 2012.
80 ! The average rent for a 4-6 bedroom property is
60
currently Kshs. 143,227.
40
20 ! The average rent for a 1-3 bedroom property is
0 currently Kshs. 58,877.
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
2011 Q1
2011 Q3
2012 Q1

SNAP SHOTS:
MixMix by Year
by Year
! The Mix by Year is a measure of the percentage that
AllAllProperty Types
Property Types each type of property represents in the market.
100%
! In 2001, apartments took up 45.3% of the market,
90%
80% Town Houses took up 20.5% of the market and
APT (1-3)(4-6 Bed)
Apartments
70% Stand alone houses took up 34.1% of the market.
60% THApartments
& M (1-3 (1-3)
Bed)
! In 2012, apartments took up 56.3% of the market,
50% H,B,C & V(4-6(1-3)
Town Houses Bed)
Town Houses took up 19.6% of the market and
40%
APT
Town (4-6)
Houses (1-3 Bed)
Stand alone houses took up 24.1% of the market.
30%
20% THStand&Alone
M Houses
(4-6)(4-6 Bed)
10% H,B,C & Houses
Stand Alone V (4-6)
(1-3 Bed)
0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

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
 The H ass Property

INDEX
QUARTER ONE REPORT
2012

TheThe
Hass
HassComposite Lettings
Composite Lettings Index
Index Annual
Annual Average
Average Annual
Annual % Change
Change
Stand
StandAlone Houses
Alone Houses Stand
Stand Alone Houses
Alone Houses 50% Stand
StandAlone Houses
Alone Houses
400 250 40%

ASking Price KSH.s 1000s

350 200 30%
300
Index 2000 =100

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

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
2011 Q1
2011 Q3
2012 Q1

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
2011 Q1
2011 Q3
2012 Q1
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
2011 Q1
2011 Q3
2012 Q1

1 to 3 Beds 4 to 6 Beds Mix Adj

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 2.68 times since 2001, a 5% rise in the last quarter and an 6.1% rise in
the last year. The average rental for a stand alone house is currently Kshs. 152,816 up from Kshs. 56,959 in December 2000.

TheThe
Hass Annual Average
HassComposite Lettings
Composite Lettings Index
Index Annual Average Annual
Annual % Change
% Change
Town Houses Town Houses 50% Town Houses
Town Houses Town Houses Town Houses
400 140 40%
ASking Price KSH.s 1000s

350 120
30%
100
300
Index 2000 =100

80 20%
250
60 10%
200 40 0%
150 20
100 -10%
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
2011 Q1
2011 Q3
2012 Q1

50 -20%
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
2011 Q1
2011 Q3
2012 Q1
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
2011 Q1
2011 Q3
2012 Q1

1 to 3 Beds 4 to 6 Beds Mix Adj

SNAP SHOTS:
• Town houses include townhouses and maisonettes that are semi-detached or terraced.
• Rental values for town houses have increased by 2.26 times since 2001, a 3.5% rise in the last quarter and a 1.2% fall in the last
year. The average rental for a town house is currently Kshs. 96,516 up from Kshs. 42,688 in December 2000.

The Hass
The HassComposite Lettings
Composite Lettings Index
Index Annual Average
Annual Average Annual
Annual % Change
Change
Apartments
Apartments Apartments
Apartments 50% Apartments
Apartments
400 120 40%
ASking Price KSH.s 1000s

350 100 30%

300
Index 2000 =100

80 20%
250 60 10%
200 40
150 0%
20
100 -10%
0
50 -20%
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
2011 Q1
2011 Q3
2012 Q1

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
2011 Q1
2011 Q3
2012 Q1

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
2011 Q1
2011 Q3
2012 Q1

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 2.7 times since 2001, 5.6% rise in the last quarter and a 10.5% rise in the last
year. The average rent for an apartment is currently Kshs. 62,808 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