UGANDA, Fort Portal | Real Muloodi News | In a mere three years, the quaint town of Fort Portal has undergone a dramatic metamorphosis, with real estate prices soaring since its elevation to city status in July 2020.
The evolution has not only impacted property values but has also given rise to a burgeoning real estate and hospitality sector, reshaping the city’s economic landscape.
Divided into north and central divisions, Fort Portal City’s transition from a municipality to a city has catalyzed substantial revenue growth, driven by investor-friendly tax policies and a surge in construction activities.
Betty Mujungu, the city’s deputy mayor, notes a significant increase in property tax revenues, surging from Shs800 million to Shs1 billion this year.
This success is attributed to the implementation of the Integrated Revenue Administration System for efficient tax registration.
The widened tax base now includes local hotel tax, ground rent, property tax, occupational permits, and business licenses.
Samuel Musana, the city’s physical planner, reports a surge in construction approvals, with 82 building plans approved in the last fiscal year and over 700 plans approved since 2020.
The swift 30-day approval process signifies the city’s commitment to fostering orderly and sustainable growth.
Fort Portal is currently finalizing a comprehensive physical development plan for 2022 to 2040, laying the groundwork for future urban development.
The city’s residential and commercial landscape has undergone a facelift, blending green spaces with new structures.
Once quiet neighbourhoods like Butangwa, Booma, Kasusu, Mugoma, Kyabikokoni, and Kagote in the central division are now bustling centres, attracting property developers and yielding profits for landlords.
Kagote, in particular, has seen a surge in residential constructions due to its proximity to key institutions like Mountains of Moon University, the army’s Mountain Division headquarters, Katojo prison, and Saaka Airfield in Kichwamba Sub-county.
However, the boom in developments has not spared the area from challenges, notably road accessibility issues during the rainy season.
The escalating demand for property has driven land prices in Kagote to remarkable heights. A 50x100ft plot of land in Kagote now ranges from USh50 million to USh100 million, while areas further from the Kagote-Ssaka Road offer more affordable options, typically ranging from USh20 million to USh50 million.
Long-time residents express surprise at the transformation, recalling a time when the area was known for criminal activities.
Today, acquiring a plot of land has become a lucrative venture, with numerous investors competing for available plots.
John Byamugisha, a resident, predicts a continued surge in land prices, estimating that a plot costing USh50 million today will more than double in the next 10 years.
The North Division, featuring areas like Rubingo, Kiguma, Kitumba, Ibonde, Karambi, Gweri, and Butebe, presents enticing opportunities for real estate development.
Rwengoma and Kahungabunyoyi areas along the Fort Portal-Bundibugyo Road in Central Division offer a mix of undeveloped and developed plots, attracting interest for residential and commercial ventures.
Business room rentals in areas like Rwengoma have witnessed a significant spike, with prices doubling from USh50,000 to USh70,000 a month seven years ago to USh100,000 to USh150,000 today.
The escalating demand for rental spaces extends beyond the city centre, impacting major streets such as Balya, Ruhandiika, Malibo, Kyembabe Road, and Rukiidi.
Rental prices per room, which were once USh500,000, have more than doubled, reflecting the growing competition for available spaces.
City resident Alex Ainomugisha attributes the soaring property prices to a shortage of rental spaces for businesses.
Investors are seizing opportunities by acquiring undeveloped plots and properties with existing structures for renovation or new construction.
A 50x100ft plot in the city centre now ranges from USh200 million to USh500 million, with prime locations commanding prices between USh500 million and USh1 billion.
The city’s real estate boom has not only transformed Fort Portal but has also had a ripple effect on Kabarole District, with infrastructure growth and new accommodation facilities emerging, particularly around the picturesque crater lakes.
The city’s journey from municipality to city has undoubtedly sparked a real estate revolution, creating opportunities, reshaping landscapes, and driving economic growth.
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