In this case it wouldn't be advisable to use the price/rent ratio because the land sitting under the house is way more valuable than the house itself.

If the plot is on a sewer line it could easily be worth over 80M. buy the land if you can, you won't regret it.

MatataMingi:

As VJ has pointed out, the basis for pricing the property is the value of the land, and not the rent paid.

Given how valuable the land is, you are better off not repairing the house but thinking of developing the land with townhouses/apartments. The units you develop will most likely be worth 2 times to more than 4 times what you paid for the land, depending on what you construct, when you start the project, the cost of financing, your available capital, among other factors.

You may want to get an informal valuation opinion from a valuer or real estate agent who is familiar with Kilimani. Recent comparable property sales should be able to give you the appropriate market price of the property.

Also, just to emphasize, the answer to your question about the basis for pricing the property is not the purchase price to rent ratio.

-Fair Car Dealer

The value of land is around 50 to 100m. The cost of a bungalow on the land is around 10m. The rental value of such land is when a minimum of 5 storeys have been constructed. This can bring in rental value of 5000m2 x kes 1000 per m2=5m per month at current rates.
This will assist you to make a good offer.

land use is controled by NCC. If the title is still under residential use, all you need is to apply for change of user to commercial and it will be automatically granted since this is in line with NCC land use for the area. You can get lucky with the 25m offer so its still worth to try...

Haleluya...150K?