UGANDA, Kampala | Real Muloodi News | According to AllAfrica, the signing of binding agreements related to the 1,445km East African Crude Oil Pipeline Project (EACOP) has raised hopes for the real estate industry recovery following the Coronavirus pandemic.
Whereas acquisition budgets operated by oil exploration companies working in Uganda fell between 2017 and 2020, a spike in investment during the first three months of this year shows that the real estate sector has good recovery prospects.
After the pandemic began last year, the sector suffered from low vacancy rates, widespread tenant defaults, and bank foreclosures.
However, according to the most recent Petroleum Authority of Uganda (PAU) statistics, the number of local housing units occupied by oil and gas industry players increased from 40 last year to 200 by the end of March 2021. Property owners saw renewed housing demand and higher returns on investment.
“Real estate prices have remained stable during the pandemic though some distressed property owners stuck with huge bank debts have been discounting their sale prices quite heavily in order to clear their loans. But I do not know much about oil and gas industry clients,” Timothy Muyingo, a Kampala-based real estate broker, made the observation.
AllAfrica writes that the vital proposed projects in Uganda’s commercial oil development programme include the $4.5 billion EACOP that links Hoima district in Uganda and Tanga port in Tanzania, as well as the oil refinery, and supporting oil field drilling facilities.
Total E&P of France and China National Offshore Oil Corporation are among the major foreign oil exploration firms invested in Uganda. Armor Energy of Australia and Oranto Petroleum of Nigeria are among the smaller players.
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