While the most common misconception that people have in the housing market is that “all property doubles in value every 10 years”, the housing market in Uganda seems to be unique.
The value of some properties will more than double every other 10 years, but others will most definitely not.
The line between whether properties will have doubled in value or not comes down to understanding the difference between property and real estate.
Alas! Most people think that they’re the same thing, but they’re not.
Real Estate is the land component, whereas property is everything that is built on the land in question.
If we focus on the Ugandan housing market, a large rental market and yields, decreasing inflation rate coupled with sturdy economic growth seems to poise the market for gradual growth.
According to Uganda Bureau of Statistics, the countrywide residential property price index rose by a meagre 3.25% (1.3% inflation-adjusted).
This resulted from a year-on-year slump of 6.9% in 2019 and annual rises of 9.4% in 2020.
In Kampala, Central and Makindye alone, the residential property prices surged 18.5% during the year to Q3 2019 (16.3% inflation-adjusted).
According to Knight Frank, the Greater Kampala Metropolitan Area has the nation’s most expensive housing units.
The average price of 2 and 3 bedroom houses in prime residential locations stands at $280,000 and $325,000, respectively.
Uganda’s rental market is massive, as most people prefer to rent than to buy property. In GKMA, over 71% of the population rent their houses. One-fifth of all households in the country rent.
According to a Cytonn Report, apartments in high-end areas such as Kololo, Nakasero, and Bugoloobi, can go as high as US$2,000 per sq. m.
In the upper middle-income areas of Ntinda, Mbuya, Lubowa, Muyenga, Luzira and Naguru, apartment units average a price of $1,160 per sq. m.
The Capital’s middle income suburbs of Bukoto, Kiwaatule, Kisaasi, Namugongo, Buziga, Kira and Bunga apartments sell for an average price of $900 per sq. m.
Our Pearl View project sells starting at $65000 for 2 and 3 bedroom units. This means that you can get a premium unit at $700 per sq. m.
Demand for housing units in Uganda continues to grow amid rapid population and urbanization growth.
An annual population growth rate of 3.2% means that the country’s population doubles every other decade.
There is no better time to invest in real estate and property. Waiting to buy is the highest interest rate.
We have local property agents in Kampala who can help you evaluate your options. We will provide guidance on what’s best for you. So please send us a message right away to get started.