UGANDA, Kampala | Real Muloodi News | According to the latest real estate market report published by Stanbic Properties Limited (SPL), the Kampala residential market saw year-on-year rents for stand-alone houses stagnate in upscale suburbs such as Kololo, Naguru, Nakasero, and Bugolobi at a median price of USD 3,500 per month.
The report, which was released March 22, 2023, found an overall 5% annual reduction in rents for both 2 and 3-bedroom apartments in high-end residential areas of Bugolobi, Nakasero, Kololo, and Naguru, with weighted median rents recorded at USD 1,900 and USD 2,375/month for 2 and 3-bedroom apartments, respectively, as of December 2022.
The report attributed this reduction to a demand and supply disequilibrium, with supply outstripping demand as the previous pipeline stock of apartments was completed. However, the middle-class settlements of Wakiso and Mukono registered annual weighted rental growth of 10% and 6% for 2 and 3-bedroom apartments per month, respectively, as of December 2022. This can partly be attributed to the scaling up of ongoing government road infrastructure projects in these locations, which has opened these suburbs to residential developments.
SPL’s Chief Executive, Spencer Sabiiti, noted that the report provides insights into price changes, demand, and related variables for different real estate categories, including residential, retail, office, rental, and hospitality spaces across Kampala Metropolitan areas for the last six months of 2022 compared to the same period in 2021. The report also anticipates cautious expansion in the residential market in the first half of 2023 due to relatively lethargic demand, with a recovery likely to pick up from the second half of 2023 onwards.
The report highlights the need for developers and investors to consider the changing trends in residential preferences, such as the shift towards more environmentally sustainable and technology-driven housing solutions, including solar energy and smart home systems. In conclusion, the report suggests that stakeholders in the residential market should focus on innovation, sustainability, and affordability to meet the evolving needs of consumers.
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