UGANDA, Kampala | Real Muloodi News | Multinationals operating in Kampala are increasingly turning their attention to residential properties in less renowned suburbs, a trend highlighted by Knight Frank, a prominent property management firm.
There is a notable shift towards dollar-dominated leases for residential apartments in areas such as Naalya, Kiwatule, and Najjera.
This movement towards less popular suburbs suggests a strategic response by multinationals with lower rental budgets seeking more affordable housing options.
Traditionally, the rental market in Kampala has been concentrated in affluent suburbs like Nakasero, Kololo, Naguru, Mbuya, and Bugolobi, extending to areas like Muyenga, Ntinda, Lubowa, Munyonyo, Mutungo, and Luzira.
The persistence of demand for residential spaces in these emerging suburbs can be attributed to relatively lower rental rates and the availability of high-quality housing stock.
There is increased activity in the prime residential market, driven by the return of expatriates to the country and growing investments in the oil and gas sector.
In contrast, demand for prime office space witnessed an upsurge in leasing activity during the first half of 2022.
Factors contributing to this trend include the full reopening of the economy, increased start-up funding, improved activity in the services sector, and significant developments in the oil and gas industry.
The demand for prime office spaces was diverse, with notable interest from sectors such as financial services, technology/telecoms, oil & gas, health, NGOs, business & professional services, start-ups, industrial/logistics, legal, and government agencies.
The retail market also experienced positive performance indicators, with footfall and turnover showing improvements compared to the previous year.
Despite the overall growth in retail activity, specific segments such as general grocery retail and average footfall in malls reported subdued figures compared to pre-COVID levels.
Meanwhile, the industrial market remained resilient, supported by government initiatives aimed at promoting industrialisation and prospective investments in the oil and gas sector.
Initiatives by the Uganda Investment Authority to enhance domestic investment, particularly among small and medium-sized enterprises (SMEs), are expected to further bolster the industrial sector in the coming years.
Looking ahead, there is anticipation of a shift towards environmental, social, and governance (ESG) considerations in the real estate market.
Investors, occupiers, and employees are increasingly emphasising green development strategies, signalling a broader focus on sustainability within the industry.
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