UGANDA, Kampala | Real Muloodi News | In 2024, Uganda’s real estate sector remains a lucrative business avenue, fueled by the persistent housing deficit of 2.1 million. This deficit continues to drive property owners, including retirees like John Bukenya, into the rental business, attracted by promising annual revenue returns.
Notably, both individuals and major companies like Stanbic Properties Limited and the National Social Security Funds (NSSF) have been drawn into this thriving sector.
Peter Sewaggude, the manager of business development at Stanbic Properties Limited, attributes this trend to Uganda’s high demand for office and residential units, driven largely by population growth.
“Like any other economy, there is a sense of growth in terms of the demographics. People are demanding properties for office and residential use. So, that obviously creates a sense of demand for investors in the sector,” Sewaggude states.
However, before diving into the rental property business, prospective landlords should consider crucial factors to ensure their investments yield desirable returns.
Experts caution against the haphazard construction of rental units without a thorough examination of the drainage system and soil composition.
Muhammed Nsereko, a construction expert, advises builders to use concrete stones in the foundation to mitigate water damage, especially in areas prone to flooding like Kampala’s wetlands.
Architect Abdu Wahab Nyanzi highlights the risk of buildings collapsing due to loose soil or groundwater, which can compromise structural integrity and tenant comfort.
Furthermore, landlords should prioritise spacious living areas over cramped rooms, as Ugandans, particularly those with large families, prefer ample living spaces.
House broker Badru Kateregga emphasises the importance of incorporating internal toilet and bathroom facilities to meet the demand among tenants, especially in areas like Namugongo, where such units command higher rental rates.
Additionally, tenants increasingly seek properties with separate water and electricity meters for convenience and transparency in utility billing.
Renovating rental properties periodically is essential to attract new tenants and retain existing ones while potentially increasing rental fees. Landlords can opt for remodelling or repainting structures to enhance their appeal.
However, property owners must obtain necessary permits from local authorities, such as the Kampala Capital City Authority (KCCA), before undertaking renovation activities.
Hiring professional painters ensures quality workmanship and maintains the aesthetic appeal of rental units.
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