UGANDA, Kampala | Real Muloodi News | Situated as the vibrant heartbeat of Uganda, Kampala emerges as a city teeming with life, economic growth, and cultural diversity.
However, beneath its prosperous facade lies a distinctive economic challenge—a surge in housing costs. As the clamour for accommodation intensifies, the dream of owning a home in Kampala is evolving into an increasingly costly pursuit.
The real estate terrain in the capital city has witnessed a remarkable price upswing, turning homeownership into a daunting task for the local populace.
This reality comes to the forefront through Numbeo’s price-to-income ratio, pinpointing Kampala as the world’s leader in terms of housing costs.
The price-to-income ratio, a pivotal metric, reveals the intricate relationship between the current market value of a housing unit and the total yearly income of a household.
Numbeo employs a comprehensive formula, considering the ratio of median apartment prices to median familial disposable income, expressed in years.
By this formula, the capital city presently boasts the highest price-to-income ratio globally, standing at a staggering 79.4. Shanghai, China follows at 49.3, with Douala, Cameroon securing the third spot at 47.1.
Beyond Kampala, Douala, and Addis Ababa, with an index of 40.2, no other African region reports a price-to-income ratio surpassing 40. Top African cities exhibit indexes ranging from 25.9 to 1.8.
Despite Numbeo’s assessment, Uganda’s economy showcases robust performance, transitioning from a January inflation rate of 10.4 to a mere 2.4 in October. This positive trend extends across all major components of the Consumer Price Index, marking a notable decline.
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