Westlands properties benefit from spillover of the suburb becoming a MICE Hotspot

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1 Westlands properties benefit from spillover of the suburb becoming a MICE Hotspot Property prices posted a 1.1 per cent over the quarter with detached housing leading the segment up 1.3 per cent in the while semi-detached houses posted the strongest total return at 11.8 per cent Westlands suburb showing the strongest performance over the year with prices in the area improving by 7.9 per cent as it undergoes the rediscovery phase of the urban regeneration cycle - a result of high income earners moving back to neighborhoods more central to the city Westlands receives the lion's share of major hotel brands that are setting up in Nairobi to tap into the growing Meetings, Incentives, Conferences, and Exhibitions (MICE) niche market. Rents across the market increased by 1.5 per cent over the quarter down from 3.3 per cent in the previous quarter on tightening market liquidity. Property Index Highlights: The Hass Composite Sales Index All Properties Detached Houses Semi Detached Houses All Apartments Properties Segment with Highest ly Increase in Sales Price Segment with Lowest ly Increase in Sales Price Segment with Highest Increase in Sales Price Segment with Lowest Increase in Sales Price 1.1% 8.1% 2.44 Fold 1.3% 8.8% 2.39 Fold 0.5% 11.8% 2.71 Fold 0.8% 1.3% 2.31 Fold Houses in Ngong ( +4.2% over last year) Apartments in Lavington ( -0.7% over last year) Houses in Ngong ( +17.8% over last year) Apartments in Kilimani ( -5.2% over last year) The Hass Composite Rental Index All Properties Detached Houses Semi Detached Houses All Apartments Properties Segment with Highest ly Increase in Rental Price Segment with Lowest ly Increase in Rental Price Segment with Highest Increase in Rental Price Segment with Lowest Increase in Rental Price 1.5% 4.7% 1.82 Fold 0.8% 1.1% 1.84 Fold 1.1% 11.5% 2.19 Fold 3.5% 7.0% 1.56 Fold Apartments in Ngong ( +6.1% over last year) Houses Kileleshwa in Gigiri (-12.0% ( -0.5% over last year) Houses in Tigoni ( +13.1% over last year) Apartments in Upperhill ( -9.6% over last year)

2 Hass Consult today unveiled the property price trends for the third quarter of, revealing that there was a 1.1 per cent increase over the quarter and 8.1 per cent over the year Kilimani and Muthaiga emerging as the top performers with a 3 per cent increase. On an annual basis the Westlands suburb showing the strongest performance over the year with prices in the area improving by 7.9 per cent. Westlands' performance is benefiting from the area becoming a melting pot for international hotel brands setting up in the area as they seek to tap into Nairobi's growing market for Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism. The increased growth of MICE tourism is trickling down to the apartment, detached and semi-detached housing market in the Westlands suburb as some visitors opt to stay in serviced apartments or houses that are in close vicinity to the hotels where major conferences are taking place. The flourishing niche market for MICE tourism has opened an opportunity for entrepreneurs who are turning houses and apartments for renting to attendees of major conferences, some of whom prefer serviced apartments and houses over hotels and this is resulting in an uptick in prices, said Hass Consult's Head of Development Consulting and Research Ms. Sakina Hassanali. Ms. Hassanali added that the Westlands area is additionally undergoing the rediscovery phase of the urban regeneration cycle which is the result of high income earners moving back to neighborhoods that had previously seen an exodus of these tier of residents. Classically, in urban markets, areas that are initially populated by high-income earners are often, over time, developed in ways that lead to a shift in the mix of the population, with middle income earners beginning to move into the area. This can cause flight by the elite, to the next upmarket beauty spot. As the high-end residents vacate, property becomes further developed, often at higher density, and the area will see an influx of lower income earners. This takes the cycle on a further stage, as middle-income earners also seek to relocate. Finally a younger generation of middle income earners comes to develop this area making it get 'rediscovered', added Ms. Hassanali. Overall the detached housing market posted the strongest performance at 1.3 per cent over the quarter while semidetached houses posted an 11.8 per cent over the year. On the rental front asking rents continued to marginally rise over the quarter at 1.5 per cent and 4.7 per cent on an annual basis. Apartments led the pack on over the quarter at 3.5 per cent while semi-detached houses topped on an annual basis at 11.5 per cent. For more information, please contact: Sakina Hassanali, Head of Development Consulting & Research

3 House Price Trends By Suburb in Nairobi Nairobi Suburbs Property Index - All Houses Donholm 5.1 % 3.30 FOLD 4.5 % 1.73 FOLD Eastleigh 1.1 % 3.4 % 3.04 FOLD 2.87 FOLD Gigiri 1.4 % 1.6 % 2.77 FOLD -0.5 % 2.6 % 1.96 FOLD Karen 1.7 % 5.7 % 3.32 FOLD 2.5 % 1.90 FOLD Kileleshwa 2.0 % 2.0 % 2.76 FOLD 0.0 % 2.29 FOLD Kilimani 3.0 % -0.5 % 2.56 FOLD 2.0 % 5.1 % 1.91 FOLD Kitisuru 0.5 % 1.2 % 2.82 FOLD 2.8 % 2.63 FOLD Langata 1.8 % 2.8 % 4.41 FOLD -1.4 % 1.66 FOLD Lavington 1.7 % 3.6 % 2.80 FOLD 0.1 % 0.5 % 2.66 FOLD Loresho 5.5 % 2.38 FOLD -3.1 % 2.33 FOLD Muthaiga 3.0 % 5.9 % 2.24 FOLD 0.3 % 4.5 % 2.62 FOLD Nyari 4.4 % 2.49 FOLD 4.3 % 1.74 FOLD Ridgeways 1.9 % 1.5 % 2.42 FOLD 2.2 % 3.8 % 2.22 FOLD Runda 2.2 % 0.9 % 3.10 FOLD 3.0 % 1.82 FOLD Spring Valley 0.3 % 4.0 % 2.32 FOLD 1.9 % 0.5 % 1.79 FOLD Westlands 2.0 % 7.9 % 2.96 FOLD 3.07 FOLD Apartment Price Trends By Suburb Nairobi Nairobi Suburbs Property Index - Apartments Kileleshwa 0.9 % FOLD -2.9 % 1.82 FOLD Kilimani 0.0 % -5.2 % 2.48 FOLD 0.9 % -6.5% 1.61 FOLD Langata 2.4 % 4.3 % 2.46 FOLD 8.1 % 1.83 FOLD Lavington -0.7 % -3.0 % 2.49 FOLD 1.6 % -7.3 % 1.64 FOLD Parklands 0.7 % 6.4 % 3.09 FOLD 2.3 % 8.4 % 2.25 FOLD Upperhill 1.6 % 2.93 FOLD 1.4 % -9.6 % 2.87 FOLD Westlands 0.7 % 5.1 % 2.74 FOLD 2.4 % 0.2 % 1.78 FOLD

4 House Price Trends By Town in Nairobi s Satellite Areas Nairobi Satellite Property Index - All houses Athi River 2.5 % 6.0 % 3.00 FOLD 2.9 % -3.6 % 1.54 FOLD Juja 2.5 % -0.1 % 2.67 FOLD 1.1 % -1.1 % 2.82 FOLD Kiambu 1.4 % 5.0 % 2.59 FOLD 2.5 % 6.3 % 1.98 FOLD Kiserian 2.5 % 1.7 % 2.54 FOLD 4.7 % -1.7 % 2.37 FOLD Kitengela 2.5 % 9.7 % 2.84 FOLD 1.5 % 1.86 FOLD Limuru 1.1 % 9.0 % 2.80 FOLD 2.1 % 12.8 % 2.47 FOLD Ngong 4.2 % 17.8 % 2.86 FOLD 3.7 % 11.7 % 2.62 FOLD Ongata Rongai 0.7 % 2.66 FOLD 1.2% 1.8 % 2.21 FOLD Ruiru 0.7 % 4.7 % 3.27 FOLD 0.9 % 5.8 % 2.38 FOLD Tigoni 3.5 % 12.8 % 2.36 FOLD 2.0 % 13.1 % 2.07 FOLD Apartment Price Trends By Town in Nairobi s Satellite Areas Nairobi Satellite Property Index - Apartments Athi River 1.0 % 5.9 % 1.94 FOLD 5.3 % -2.7 % 1.37 FOLD Kiambu 1.4 % 5.8 % 2.59 FOLD 1.4 % 0.8% 2.37 FOLD Kitengela 1.9 % 1.4 % 1.90 FOLD 0.9 % 4.0 % 2.08 FOLD Mlolongo 2.5 % 6.7 % 1.70 FOLD 8.8 % 2.17 FOLD Ngong 1.2 % 13.9 % 2.64 FOLD 6.1 % 0.5 % 1.88 FOLD Ongata Rongai 1.8 % -1.1 % 2.06 FOLD -0.9 % 1.97 FOLD Ruaka 0.0 % FOLD 10.1 % 2.37 FOLD Syokimau 3.3 % 1.91 FOLD 0.2 % -2.3 % 1.94 FOLD Thika 3.1 % -3.8 % 1.76 FOLD 3.0 % 2.0 % 1.94 FOLD

5 Index 2000 = The Hass Sales Index Q1 Q3 The Hass Composite Sales Index is representative of all properties for sale in Kenya Property values have increased by 4.50 times since The index shows a property price rise of 0.2% in the last month, rise of 1.1% in the last quarter and a 8.1% rise in the last year. ASking Price KSH.s 1000s 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Average Q1 Q3 The annual average is representative of the average price of all properties offered for sale in Kenya. The average value for a property has gone from 7.1 million in December 2000 to 32.3 million in September. The average value for a 4-6 bedroom property is currently 41.2 million. The average value for a 1-3 bedroom property is currently 14.5 million. 1 to 3 Beds 4 to 6 Beds Mix Adj 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mix by Year Apartments (1-3 Bed) Semi-detached (1-3 Bed) Detached (1-3 Bed) Apartments (4-6 Bed) Semi-detached (4-6 Bed) Detached (4-6 Bed) The Mix by Year is a measure of the percentage that each type of property represents in the market. In 2001, Apartments took up 23.5% of the market, semi-detached took up 24.5% of the market and detached houses took up 52% of the market. In December 2017 however, Apartments took up 48.7% of the market, Semi-detached Houses took up 24.9% of the market and Detached Houses took up 26.4% of the market

6 Index 2000 = The Hass Rental Index The Hass Composite Letting Index is representative of all properties for rental in Kenya Rents have increased by 3.86 fold since 2001 The index shows a property rise of 0.5% in the last month, rise of 1.5% in the last quarter and have risen by 4.7% in the last year. Q1 Q3 ASking Price KSH.s 1000s Average Q1 Q3 1 to 3 Beds 4 to 6 Beds Mix Adj The annual average is representative of the average rent of all properties offered to let in Kenya. The average rental for a property has gone from Kshs. 38,516 in December 2000 to Kshs. 148,741 in September. The average rent for a 4-6 bedroom property is currently Kshs. 230,527 The average rent for a 1-3 bedroom property is currently Kshs. 75, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mix by Year Apartments (1-3 Bed) Semi-detached (1-3 Bed) Detached (1-3 Bed) Apartments (4-6 Bed) Semi-detached (4-6 Bed) Detached (4-6 Bed) The Mix by Year is a measure of the percentage that each type of property represents in the market. In 2001, Apartments took up 45.3% of the market, Semi-detached Houses took up 20.5% of the market and Detached Houses took up 34.2% of the market. In December 2017 however, Apartments took up 63.4% of the market, Semi-detached Houses took up 18.1% of the market and Detached Houses took up 18.5% of the market