• Mon. Oct 2nd, 2023

Redefining Residential Locations: Shifting Away from Proximity to Kampala

UGANDA, Kampala | Real Muloodi News | A recent report by Knight Frank suggests that the proximity to Kampala or the central business district is no longer the primary consideration when choosing residential locations.

According to the ‘Kampala Next Neighborhoods report’, there has been a shift in consumer preferences. Many people are now willing to trade shorter commutes for better properties located in well-structured communities with access to various amenities.

The report highlights a notable change in consumer preferences, where individuals are now prioritising extensive and modern properties over proximity to their workplace. This shift is driven by the desire for better living conditions and the availability of amenities.

Knight Frank’s report states, “There is now a shift in consumer preferences, with many willing to trade shorter commutes for more extensive, modern properties with various amenities.”

The report explores new or secondary suburbs that have emerged as attractive residential locations. These suburbs include Kyanja, Najeera, Naalya, Lubowa, and Entebbe.

Over the past decade, the real estate industry in Kampala has witnessed significant growth, expanding beyond the traditional seven hills to encompass areas such as Wakiso, Mpigi, and Mukono.

This growth can be attributed to demographic changes, economic factors, improved infrastructure, a growing central business district, an increasing working population, and enhanced transportation networks.

The report highlights several unique factors characterizing the new or secondary suburbs. One notable aspect is the demographic composition, with at least 77 per cent of households in these areas being below 30 years of age.

The price of land is another significant factor, with average costs ranging from USh900m in Najeera to USh1.46b in Entebbe per acre.

The report also provides rental rates for different suburbs, indicating that Najeera offers the lowest rates, starting at USh600,000 per month for a one-bedroom unit.

Kyanja follows closely, with rental properties starting at USh650,000 per month for a one-bedroom unit.

The report also presents an outlook for the new suburbs, highlighting various trends. These suburbs are witnessing the emergence of an Airbnb industry, an increased supply of housing units, affordable housing projects, and shared living arrangements.

The tenant demographic typically consists of mid-income, young married individuals, and full nesters.

Additionally, the report notes that while transactions in suburbs like Kyanja, Najeera, and Naalya are conducted in Ugandan shillings, in Entebbe and Lubowa, transactions are carried out using a mixed denomination of both shillings and dollars.


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