What’s Being Built in Kololo and Nakasero Right Now

If you drive through Nakasero or Kololo today, you’ll notice how much Kampala is building. There are cranes above new construction sites and apartment blocks taking shape where, not so long ago, there was nothing.

For anyone looking to invest in Kampala’s prime residential market in 2026, it raises a few questions. Who is building all these apartments? Will there be enough buyers and tenants for them? And what does all this construction mean for property prices and rental income?

Because while a growing skyline is a sign of activity, it doesn’t tell you whether a property is a good investment. To understand that, you have to look at what’s being built, how much is coming onto the market, and whether demand can keep up.

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Why Supply Is the Story in Both Areas

In the second half of 2025, apartment rents in Kampala’s prime residential neighbourhoods softened slightly as more apartments entered the market. Knight Frank’s H2 2025 review also points to changes in expatriate numbers and reduced donor-funded activity as factors affecting demand.

Yet developers continued launching new projects in Kololo and Nakasero, many offering three-bedroom apartments. This is where things get interesting. If several buildings offer the same type of apartment to the same pool of tenants, they end up competing for the same people.

For investors, the question is what happens when all these new apartments are ready. Will there be enough tenants to rent them, and will landlords still be able to charge what they expect? The answers depend partly on what is being built and whether it matches what tenants actually want.

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The Land Constraint: Why Neither Area Can Expand

One reason Kololo and Nakasero remain attractive to property investors is that there is only so much land available to build on. Both are established parts of Kampala, and finding a suitable plot for a new development is not always easy.

Nakasero has to accommodate more than homes. Government institutions, corporate offices, hotels and diplomatic missions all occupy valuable land. As new commercial developments take shape, some of these sites are committed to uses that are unlikely to change for decades. That leaves fewer opportunities to build new homes, unless existing properties are redeveloped.

Kololo faces a different set of constraints. Its established residential character, diplomatic presence and planning restrictions influence where and how new buildings can be developed. Security considerations also matter, particularly around diplomatic residences and other sensitive sites.

For property buyers, this helps explain why new developments in these neighbourhoods attract attention. There is limited room to expand, so much of the new housing must come from redeveloping existing plots or building upwards. But land scarcity alone does not guarantee that a property will rise in value. The building, its location, its price and demand from buyers or tenants still matter.

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Height and Density Rules That Shape What Gets Built

Uganda’s building rules affect how tall developers can build, especially in areas like Kololo and Nakasero. They have to consider planning requirements, flight paths, and security around sensitive sites such as State House. The exact limits depend on the location, so not every plot can accommodate a high-rise building.

That helps explain why many developments in these neighbourhoods are between five and twelve floors. Going higher can mean meeting additional requirements and securing approvals that depend on the site.

Cadenza Residence, planned to rise 25 storeys in Nakasero, and The Bridge Kololo, with two 12-storey towers, take different approaches to building upwards. But height alone doesn’t make a property a better investment. What matters is what the development offers, what it costs, and whether buyers or tenants will see value in it.

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What’s Currently Under Construction in Kololo

Around a dozen buildings are under construction or nearing completion across central Kampala, including Kololo, Nakasero and the uptown areas. Together, these projects are changing the city’s skyline ahead of the 2027 Africa Cup of Nations.

Kololo is seeing more apartment developments, even as it holds on to its established residential character. A few projects stand out.

The Bridge Kololo is being built on Impala Avenue. It will have two 12-storey towers connected by a skybridge café and lounge, with Lake Victoria views and 25 lifestyle amenities. VAAL Real Estate launched the project in August 2025, and over 25% of the apartments have been sold since launch. The skybridge is a distinctive feature, giving residents a shared space to relax and take in the views.

Other off-plan projects launched in the second half of 2025, many offering three-bedroom apartments. Knight Frank’s market review linked the increase in new supply to some easing of rental rates. With several developments targeting the same type of tenant, landlords may face more competition once these apartments are ready.

There is also a gap worth watching. Three-bedroom apartments are becoming more common, while studios and one-bedroom apartments may offer different opportunities, particularly for corporate tenants and short-stay guests. The Bridge adds another option to the mix, with its shared amenities and skybridge setting it apart from more conventional apartment developments.

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What’s Currently Under Construction in Nakasero?

Nakasero has a mix of residential, office and hotel developments, all competing for space in one of Kampala’s most established neighbourhoods. Several major projects are changing the area, and not all of them are homes.

Cadenza Residence on Katonga Road is being developed by VAAL Real Estate. The 25-storey residential tower, with three basement levels, is expected to be completed in December 2027. It will have over 250 luxury apartments, from studios and one-bedroom units to larger apartments and luxury penthouses. Residents will also have access to amenities including a heated swimming pool, gym, running track, sauna, steam bath, children’s play areas, meeting rooms and concierge services.

One thing that sets Cadenza apart is its range of apartment sizes. Alongside larger homes, it offers studios and one-bedroom apartments for buyers looking at smaller units that may suit different rental needs.

Afreximbank’s headquarters on Yusuf Lule Road began construction in November 2024. Although it is not a residential project, a major financial institution in the area could bring more professionals to Nakasero, adding to the pool of people who may want to live nearby.

Twed Heights, a 26-floor mixed-use development on Muwafo Road associated with the Kampala Hilton project, is another major addition to the area. Its focus is on commercial and hospitality use rather than housing, but it adds to the changing skyline and takes up land that could otherwise have been available for other forms of development.

Pension Towers on Lumumba Avenue is nearly complete. The 26-floor NSSF headquarters has yet to open after a long construction period. Like the other institutional developments, it occupies a site that is unlikely to return to the residential market.

Taken together, these projects show how Nakasero is developing. More land is being used for offices, hotels and major institutions, leaving fewer sites for new homes. That does not automatically mean every existing apartment will rise in value, but it does make the location and quality of each residential development more important. Cadenza is one of the projects adding new homes to this increasingly built-up part of Kampala.

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How New Supply Is Changing the Unit Mix

Much of the new apartment supply in Kololo and Nakasero is made up of three-bedroom apartments. These have traditionally served diplomatic families and senior NGO staff, but as more similar apartments enter the market, rental rates have started to soften. Knight Frank’s H2 2025 review reported a 1% decline in rental rates during the period.

At the same time, smaller accommodation options are worth looking at. Hotels and serviced apartments offering studios and one-bedroom units have been attracting guests who want a convenient place to stay in the city. Business travellers, consultants and professionals on short assignments may not need a large family apartment. They want somewhere comfortable, well managed and close to offices, restaurants and other services.

Nakasero is well placed to serve this demand. Its central location makes it convenient for people who need to move around Kampala for work, while studios and one-bedroom apartments offer a more practical option for single occupants and short stays.

This creates an interesting contrast in the market. Larger apartments are facing more competition as new supply comes in, while smaller units may benefit from the needs of a different type of tenant. The opportunity depends on whether a development can attract consistent demand and manage the property well.

Cadenza Residence is designed to cater to this smaller-unit market, with studios and one-bedroom apartments alongside larger homes and penthouses. Its location in Nakasero and range of amenities are intended to appeal to residents who want a well-managed apartment in the heart of Kampala.

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What the Pipeline Means for Prices Over the Next Few Years.

Knight Frank expects rents for some larger apartments to remain under pressure through 2026 as new developments are completed. How quickly the market absorbs these apartments will help determine what happens to rents over the next few years.

Smaller apartments could have a different outlook. Studios, one-bedroom and two-bedroom apartments can suit professionals, business travellers, couples and small families who want to live close to Kampala’s business centre without paying for space they do not need. As the city grows and more people come to Kampala for work, these units could appeal to a wider range of tenants. Their performance will still depend on location, pricing and how well the property is managed, but the demand is worth watching.

The longer-term outlook for Kampala also remains positive. Continued urbanisation, infrastructure investment and interest from local and international developers are expected to support the property market. One projection estimates that residential property prices in Kampala could rise by 45–65% by 2031 in nominal shilling terms. This is a forecast, not a guarantee, and growth will vary from one property to another.

For buyers considering off-plan property, the opportunity is to secure a unit before completion and potentially benefit from price growth as the development takes shape. In a market where demand varies by apartment size, choosing the right unit may matter just as much as choosing the right location.

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How to Check Whether a Project Will Actually Complete

Buying an apartment before it is built means trusting a developer to deliver what they have promised. Before committing your money, there are a few things worth checking, especially when comparing the many off-plan developments in Kololo and Nakasero.

1. Has the developer completed and handed over other projects?

Look beyond buildings that are still under construction. Ask to see completed projects, speak to existing owners if possible, and find out whether residents have moved in. A developer’s track record gives you a better idea of what they have delivered before.

2. Does the apartment suit the demand in that location?

Think about who is likely to rent or buy the unit once it is ready. If several nearby developments offer similar three-bedroom apartments, yours may face more competition. Studios and one-bedroom apartments may appeal to a different group of tenants, while two-bedroom units can suit couples, small families and professionals who need extra space.

The right choice depends on the location, the asking price and the people likely to want that type of apartment.

3. Are payments tied to construction progress?

Understand exactly when each payment is due. A milestone-based plan links payments to agreed stages of construction, while a date-based plan may require you to pay by a set date regardless of progress. Ask how construction milestones are verified and what the agreement says if the project falls behind schedule.

4. Will you receive an individual title for your apartment?

For a condominium, ask how individual ownership will be registered under Uganda’s Condominium Property Act. Have a qualified property lawyer check the land title, the developer’s legal rights over the property and the arrangements for registering your unit. Do not rely on verbal assurances or the sales brochure alone.

5. Who will manage the building after completion?

This matters particularly if you plan to rent out the apartment while living elsewhere. Find out who will handle maintenance, security, shared facilities, tenant issues and rental management. Also ask about management fees and what services they cover. Poor management can affect both the condition of the property and the income it generates.

6. Does the project have the required permits?

Check that the development has the necessary approvals and a valid building permit. You can ask the developer for copies and verify the relevant details with the responsible authorities, including the Uganda National Building Review Board where applicable. A permit does not guarantee that a project will be completed, but the necessary approvals are an important starting point.

7. How much competition will your apartment face?

Look at other developments in the area and compare their apartment sizes, prices, amenities and expected completion dates. If many similar units are due to enter the market at the same time, you may need to be more cautious about the rent you expect to earn. Consider both current demand and the supply likely to be available when your apartment is ready.

8. Have you calculated the full cost of buying?

The purchase price is only part of the cost. Ask about stamp duty, legal fees, registration charges, service charges and any other applicable costs. Stamp duty rates can change, so confirm the rate in force at the time of the transaction with your lawyer or the relevant authority before finalising your budget.

These checks will not remove every risk, but they can help you make a more informed decision. A good location and an attractive price matter, but so do the developer’s track record, the legal arrangements and the practical details of owning the apartment once it is complete.

Kampala’s changing skyline tells different stories. Institutional developments are taking up more land, while new apartments are adding supply to an already competitive market.

For buyers, the opportunity lies in knowing what is being built, who it serves and whether the price makes sense. Cadenza Residence in Nakasero and The Bridge Kololo offer two distinct options for prime city living.

Visit the Cadenza showhouse at Plot 1 Katonga Road, Nakasero, or call +256 765 500 000 to learn more.

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Frequently Asked Questions