Coastal Towns See Land Price Declines, Including Bamburi and Mtwapa – HassConsult

Coastal towns witnessed a slight decline in land values during the final quarter of 2025, spanning October through December. Based on HassConsult’s most recent Hass Property Index report for the coastal region, certain zones maintained positive trends while key locations recorded negative shifts over the quarter. The most significant price decreases were observed in Bamburi, situated in the Mombasa outskirts, where land values fell by 1.1 percent during this three-month period. Despite this recent downturn, Bamburi demonstrated robust long-term growth with a 56.6 percent increase in land values over the preceding half-decade. Within Bamburi, standard land averages Ksh57.9 million per acre, whereas beachfront properties command approximately Ksh97.4 million per acre. Mtwapa similarly saw a decline, with values decreasing in adjacent areas near the Jumba La Mtwana beach locations. Mtwapa’s typical land parcels are valued at approximately Ksh37.9 million per acre, with beachfront properties averaging Ksh44.4 million. Mombasa City, encompassing English Point, Nyali and Shanzu Beaches, also experienced a 1.0 percent quarterly decrease in land values, notwithstanding 38.3 percent growth over the previous five years. The real estate firm reports that land within Mombasa averages Ksh91.3 million per acre, with beachfront properties reaching approximately Ksh120.3 million. Watamu, covering Garoda, Jacaranda, Papa Remo and Watamu Beaches, registered a 0.5 percent decrease in land values during the final quarter of last year. The report identifies multiple factors influencing these price variations, including the volume of diaspora investors, tourism-driven purchases, lifestyle-oriented acquisitions, and beach proximity. Additional determinants of price movements encompass ocean visibility, marine recreation opportunities, erosion and flood hazards, and water accessibility. In contrast, Diani stood out with a 2.3 percent rise in land values during this period. Diani’s typical land parcels are currently valued at Ksh36 million per acre, with certain estates reaching as high as Ksh65 million per acre. Concurrently, Lamu Island experienced a 1.8 percent increase in land prices, retaining its status as one of Kenya’s priciest coastal real estate markets. Additional towns witnessing growth in land values include Malindi, Kikambala, Shanzu and Nyali, where prices increased by 1.5 percent, 1.0 percent, 1.3 percent and 1.2 percent respectively. “Coastal property has decoupled from broader economic patterns in Kenya through emerging dynamics during the 2020s,” stated Sakina Hassanali, Co-CEO and Creative Director at HassConsult. “Encompassing remote work arrangements, retirement migrations, and the sustained interest from international and local visitors who initially experienced the region as tourists, coastal real estate has formed its unique market characteristics.” Despite these price variations, Hassanali cautioned that unresolved property ownership disputes, inadequate infrastructure, and water deficiencies continue to impede investment in certain areas of Kilifi and Kwale counties.