Nairobi, Feb. 1 -- House prices dropped by the biggest margin in the quarter to December in over four years amid an oversupply of homes and costly bank loans.

Data by realtor HassConsult show the price of an average house within the city fell 2.2 percent during the period, marking the first contraction since June 2020 at the peak of the Covid-19 economic crisis.

The fall reverses a gradual increase in home prices, which started in September 2020 following the recovery of the real estate market, which saw home costs in the year to June rise at the fastest pace in 11 years.

Property dealers have attributed the fall to the rising interest rates that deterred prospective buyers and sky-high inflation in the Western world that depressed dem...