Hass Consult's land price index for the second quarter of 2023 revealed that land prices in Nairobi's suburbs experienced a slight drop of 0.1% in the quarter ending June 2023. The most expensive areas for land were Upper Hill, with prices at KSh 478.7 million, followed by Westlands (KSh 452.4 million) and Parklands (KSh 403.9 million) [43b75e67]. Land prices in satellite towns had minimal increases of just 1.2% in the quarter and 5.1% in the year. However, Spring Valley, Donholm, Loresho, and Langata saw double-digit land price increases. Areas with more flexibility in development densities tend to have higher land prices. The average cost of an acre in Upper Hill is KSh 478.7 million, while an acre in Westlands costs at least KSh 452.4 million. Kilimani's land prices declined by 1.7% compared to the previous year. Nyari estate has four-bedroom villas costing between KSh 200,000 and KSh 300,000, with average house prices at KSh 103.6 million. Runda requires at least KSh 92.1 million to own a house, with monthly rent ranging from KSh 200,000 to KSh 300,000 [43b75e67].
In India, land prices are also high relative to their fundamental value, impacting economic development in the country. The high price of land is attributed to two factors: the 'license-permit-quota' Raj in the real estate sector in urban India and the Land Acquisition Act, 2013 in rural India [9d123ed5]. The 'license-permit-quota' Raj refers to a system of strict rules, regulations, bureaucracy, and political discretionary decision-making that drives up the price of urban real estate. The Land Acquisition Act, 2013 also contributes to high land prices in rural India. The author of the article recommends phasing out the 'license-permit-quota' Raj and eventually abolishing the pricing provisions of the Land Acquisition Act to address the issue of expensive land in India [9d123ed5].