1 - Do you believe there is one?
2 - If yes when do you think it will explode rather than burst?

I do believe in one and 2......

I have never heard of Land depreciation. Even in Accounting theories, it doesnt exist.

But again, its not sustainable where the price of land increases 50times because a road has been built passingby the said land.

I think there is. When u have everybody selling overvalued plots, there is bound to be oversupply. Again, land is a non-perishable asset, once I buy enough, I wont buy any more in a long time-wavering demand. Add a few demolitions, frauds, increased cost of living....then combine oversupply with falling demand....

The land prices issue in Kenya is compounded by growing middle class, rural-urban migration, improved infrastructure and high speculative demand. These are bound to remain, so dont expect a burst, guys have been waiting for it since 2004!

my guess is that with the county govt, demand for housing around nairobi will easen and spread evenly throughout kenya. This wil result in nairobi land prices falling.
@ jaina. true. The price of land in anirobi near major roads is overvalued due to high demand. Once the greater easternand southern bypasses are constructed plus effect of county govt, this demand will reduce.
Price of land in other developed countries e.g South Africa ,Egypt is lower for the same infrastructure and proximity to a city.
http://www.koskerealty.com/acreage.html