UGANDA, Kampala | Real Muloodi News | The Ugandan diaspora has become a key player in the country’s real estate sector, contributing significantly to property development through investments and remittances. The influence of the diaspora extends beyond real estate to impact construction, retail, and leisure industries.
As Uganda’s demand for housing continues to grow, the role of the diaspora in real estate remains crucial in shaping the market’s future.
Investment Trends in Real Estate
According to Moses Lutalo, managing director of Broll Uganda, the diaspora accounts for an estimated 30 to 40 per cent of Uganda’s real estate demand. Most of this demand is directed toward affordable housing rather than luxury properties.
“Many members of the diaspora already own homes abroad, so their focus is not necessarily on high-end properties,” Lutalo stated. “Instead, they are more inclined to invest in affordable homes that offer security for their families and serve as a financial asset for the future.”
While luxury apartments and high-end properties attract some investors, the majority of diaspora members prefer affordable housing options that provide long-term stability for their families.
Land Over Ready-Made Homes
One significant trend among the diaspora is a strong preference for land over finished properties. This is particularly common among Ugandans living in the Middle East, where many are employed in informal jobs with varying income levels.
Mariam Tusubira, proprietor of Infotrust Property Consultants, explained that many diaspora buyers prefer land ownership because it allows them to build gradually.
“Many of our clients prefer building modest homes, with budgets around USh50m,” said Tusubira. “Instead of buying a finished home, they can buy land and build over time, paying as they go. This approach enables them to secure a home without the burden of large, upfront payments.”
This gradual investment model allows the diaspora to plan construction according to their financial situation, making homeownership more accessible.
Rise in Apartment Investments
While purchasing land is a preferred investment strategy, the demand for apartments among the diaspora is also increasing. Apartments provide security, lower maintenance costs, and more manageable investments for those living abroad.
“Many of our diaspora clients are investing in apartments because they offer a low-maintenance, secure investment,” said Lutalo. “For instance, in our affordable housing developments in Nsambya, apartments are priced between USh380m to USh450m and around 80 per cent of the owners are based overseas. They rent out their apartments, often through platforms such as Airbnb, to generate income.”
Apartments also provide shared services such as security, gardening, and maintenance, making them a practical choice for absentee investors who prefer hands-off property management.
Shifting Investment Locations
Traditionally, high-end areas such as Kololo, Nakasero, and Naguru attracted affluent diaspora buyers. However, as demand for affordable housing rises, investors are now focusing on peri-urban areas such as Entebbe, Mukono, Kira, and Gayaza.
These areas offer more affordable land and housing options while benefiting from improved infrastructure and rapid urbanisation. With better accessibility and security, these locations have become attractive to diaspora investors looking for long-term value.
Preferred Property Titles
Diaspora investors prefer freehold and private mailo land titles over leasehold titles, especially those issued by the Uganda Land Commission (ULC). According to Lutalo, concerns over security and long-term ownership rights influence this preference.
“There is a stronger sense of security with freehold and private mailo titles,” Lutalo noted. “Diaspora investors are generally more comfortable with titles that offer clear ownership and fewer complications.”
ULC titles typically come with a 49-year lease and a right of first refusal upon expiration. However, there remains hesitation toward Buganda Land Board (BLB) titles due to a lack of understanding about their terms.
Challenges in Real Estate Transactions
One of the major challenges facing diaspora investors is trust. Fraudulent transactions, false land sales, and misrepresentation remain significant risks in Uganda’s real estate market. Many diaspora members have fallen victim to scams involving fake land sales and unreliable intermediaries.
Phoebe Kukiliza, a Ugandan living abroad, shared her experience of being defrauded while trying to purchase land.
“I spent two years sending money back home, trusting a family member to help me buy land,” Kukiliza said. “When I finally returned to Uganda, I found out the land did not exist. It was a scam, and I had no recourse to get my money back.”
To mitigate these risks, experts advise diaspora buyers to conduct thorough due diligence before purchasing a property. Engaging trusted legal professionals and real estate agents can help verify land ownership and ensure transparent transactions.
Safeguarding Investments
Tusubira emphasised the importance of legal checks when purchasing property.
“A simple property search by a lawyer can reveal important details, such as unresolved disputes, the property’s history, and any legal encumbrances,” she said. “Many buyers lose money because they fail to verify the legitimacy of property deals.”
For diaspora investors, working with credible agents and legal experts is crucial in avoiding fraud and ensuring a secure investment process.
Economic Impact of the Diaspora
The Ugandan diaspora’s contributions to real estate extend beyond personal property investments. By injecting capital into the sector, they stimulate economic growth and create jobs in construction, infrastructure, and related industries. The impact of their investments is visible across urban developments, housing projects, and commercial properties.
Uganda recorded up to USh5.5 trillion in remittances between January 2023 and January 2024. A significant portion of these funds has been directed toward real estate and infrastructure development.
The influx of diaspora funds supports not only property acquisition but also enhances growth in the retail and leisure sectors, particularly during festive seasons when business activity surges.
As Uganda’s real estate sector continues to expand, the role of the diaspora in shaping its growth will remain essential. Government and private sector players are increasingly recognising the potential of diaspora investment in transforming Uganda’s property market.
While challenges such as fraud and land disputes persist, improved transparency and professional real estate services can help diaspora investors navigate the market securely. With increasing urbanisation and infrastructure development, Uganda’s real estate sector presents numerous opportunities for the diaspora looking to invest in long-term assets.
As investment trends evolve, the Ugandan diaspora in real estate is set to play a defining role in shaping the country’s housing and commercial property landscape for years to come.
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