From its biodiversity to its rich mineral resources, vibrant culture and with a population so young it holds first place in the whole of Africa,Uganda is truly a nation on the rise. With all its great attributes Uganda attracts a lot of interest from both local and international investors and for very good reason. From all the different industries, let us take a look at why you should think about investing in real estate in Uganda.
High demand low supply
The Ugandan real estate market is witnessing an increase in demand every day. As it stands with reference to a report by the Ugandan bureau of statistics : by the year 2030 there will experience a shortage in housing supply by about 3m units. This means that, there will need to be an increase in the houses for sale in Uganda and as a ripple effect, the houses for rent in Uganda.This is just one of the many reasons why it is the right time to think about investing in the Uganda real estate market.
Steady economic growth
Between the years of 2021 to 2022 Uganda has witnessed an economic growth of about 5.1%, from 8.8 % to 13.9 %. If all factors are held constant, this could be an indicator for better things to come. Uganda is a growing democracy, in comparison to a few African countries. This spells an opportunity for multiple sources of growth. Being a fairly untapped market there is no end to the opportunities one can exploit in this ripe market. Houses for sale and rent in Uganda are going to be positively impacted given the fact that the purchasing power of the demographic is being enabled by this steady economic growth.
High population growth rate
According to statistics by the world bank, the average population growth as of 2021, stands at 3.2% per year in Uganda in comparison to a rate of 3.0% and 1.9% in Tanzania and Kenya respectively. This ranks Uganda among some of the highest population growth rates in the world. Population in Uganda’s major cities stands at 4.3% while the rate of urbanization is 5.2 % per year. This rate of growth is one of the major contributing factors to the housing deficit in Uganda. As the population continues to increase there will be an inevitable need to house them this means there will be a need to increase the supply of housing in Uganda to cater for the ever increasing population.
Infrastructure around Kampala
The infrastructure of Uganda , in comparison to other African economies, has the opportunity for immense growth. With the start of commercial oil production in Uganda the government of Uganda has embarked on the construction of 3 oil roads to aid in the logistics and so far 363 out of 600 km are already underway. The railway system is being upgraded from the meter gauge rail to the standard gauge. With regards to air transport, there has been a revival of the Ugandan airline. 5 airports have been introduced for the purposes of international air travel to and from Uganda. These are: Arua, Kassese, Kidepo, Gulu and Pakuba. The Kabale international airport has been dedicated to service the growing oil sector in the country. Uganda boast of 18 inland water ports with an approximate 170 vessels that cater to nearly 8 million passengers each year.The government is constructing 17 hydro and solar power projects to increase the electric power output for the country .5110 km of fibre optic cables are laid across the country in a bid to increase the internet connectivity. With all these infrastructure projects taking place the market value especially in urban areas like Kampala is definitely on the rise.Houses for sale in Kampala, for example will rank very high on the best real estate investments in Uganda.
Multinationals in Uganda
In the year 2021 foreign investment in Uganda increased by 30.6 % from 874 million dollars to 1.1 billion dollars. With the proposed commercial oil production in Uganda, there have been several proposals by different countries to mutually benefit from this production. Generally the biggest beneficiaries of foreign direct investments Uganda being the mining and coffee industries. With production of something as highly valued as oil Uganda is getting ready to attract a lot of foreign interest. As these investors set up, the country will most definitely experience rapid industrialization and urbanization. The need for housing with catapult demand for real estate and there is so much to look forward to in that regard for all who will choose to invest in real estate.
Government laws and policies
Under the Ugandan constitution there are a few real estate acts in place to protect the rights of both the investors and tenants for rentals in Uganda. Some of these acts are: The mortgage act, the registration of titles act, stamp duty act and the Landlord and tenant act. The landlord and tenant act, for example, outlines critical information that must appear in an agreement between a landlord and their tenant, terms of renewal of contracts between the parties and both the landlord and tenant’s responsibilities with regards to the agreements. These laws are just among the few legal regulations that highlight how the real estate investments in Uganda are protected.Whether you are looking to buy land or apartments in Uganda these acts provide a good guideline for your investment protection.
These reasons coupled with a few more such as steady economic growth, the young demographic, relatively stable political conditions and the potential for high capital appreciation are just the icing on the cake. The geography of the country is breathtaking coupled by the warmth of the Ugandan people. Considerable research and understanding of the country’s policies and frameworks is useful in determining how best to maximize your return on investment. Getting an expert and trusted partner when looking to invest in real estate in Uganda is the very first step to ensuring your investment is secure.
