Uganda’s residential sector saw an increase in activity in 2017 generally within the apartment sector.
This has been revealed in the 2017 real estate report by Knight Frank, a leading independent real estate consultancy in Uganda.
“There is a huge demand for housing in Kampala both in low cost and middle cost housing. Alot of renewed home ownership has been registered and this is good for us,” noted Marc Du Toit, Knight Frank Uganda’s Head of Retail.
The stimulation in the residential sector has been attributed to the construction of serviced apartments.
In addition to increased demand for residential houses, there were increased inquiries in prime office space from organizations trying to relocate as well as from startups that need neat and smarter offices.
“The Oil and Gas sector has really improved the occupancy of the office space in areas of Nakasero, Kololo and Kampala. Take up of office space was mainly driven by Corporate companies in insurance, Medical sectors and others that need to better their images. Facilities such as AC, Ample parking, good security and clean environment have stimulated increased office lets.”
However, despite a drop in the rental prices in the Industrial sector, the sector experienced a slowdown in leasing activity, in line with economic performance.
Demand for space in the traditional industrial areas (1 to 8th Street) remained stagnant.
This has been attributed to the acquisition of new homes in the Namanve by a reasonable number of companies.
Speaking at the presentation, Judy Rugasira, the Managing Director of Knight Frank Uganda used the opportunity to warn government against pushing property developers to stop charging tenants in dollars.
She advised that this was likely to affect Uganda’s property market as witnessed elsewhere.
”If I am (as landlord) charging in US dollars and the tenants feel they can’t afford it, they will go, and I will be forced to adjust accordingly. That’s how things in a free market work….We are in a free market,” She said.