UGANDA, Kampala | Real Muloodi News | The rise of storeyed buildings in Kampala’s suburbs has created a noticeable shift in the city’s architectural landscape.
However, many high-rise structures remain unoccupied despite their modern designs and potential functionality. Property developers and real estate stakeholders point to several challenges hindering the occupancy of these buildings.
High Vacancy Rates
David Muwanga, a landlord in Mutungo, Nakawa Division, expressed his frustration over the lack of tenants.
“This year, I’ve only managed to secure four tenants, all on the first floors of my buildings. The upper floors remain empty,” he said.
His experience is mirrored by other property owners, especially in suburban areas such as Bwaise, where multi-storey buildings struggle to attract businesses and residents alike.
Economic Challenges
A weak economy is a significant factor in the underutilisation of storeyed buildings. Mike Ssenoga, an economist, believes the sluggish economy impacts tenants’ ability to afford rents in these buildings.
“Uganda’s housing industry thrives because it is seen as a secure investment, but the poor economy explains the large vacant spaces in commercial properties,” Ssenoga said.
Inadequate Planning and Functionality
Civil engineer David Kireli attributed the low occupancy rates to poor planning and limited accessibility.
“A two-storey building must be functional and accessible to attract tenants. Many buildings fail because they are designed strictly for offices, leaving them underutilised,” he explained.
Kireli emphasised the importance of visibility and multi-purpose use for properties in urban settings to appeal to potential tenants.
Adan Mpuuga, operations director at East Lands Agency, pointed out that a lack of research also plays a critical role.
“Investors often fail to consider market demands. In countries like Malaysia, multi-purpose buildings combine shopping malls, offices, and hotels, ensuring better occupancy rates,” Mpuuga said.
He advised property developers to diversify the functionality of their buildings to include residential facilities and hotels.
Parking and Accessibility Issues
Another recurring issue is the lack of adequate parking space.
“Many city arcades and storeyed buildings in the suburbs are deserted due to insufficient parking. This problem deters tenants, especially those running businesses requiring customer foot traffic,” Kireli added.
Financial Risks for Property Owners
For developers, the financial burden of maintaining unoccupied storeyed buildings is significant. Dan Twebaze, managing director of TWED Property Development Limited, noted the risks associated with such ventures.
“Failing to attract tenants after securing loans to construct buildings is devastating. Some property owners risk losing their investments to financial institutions,” he said.
Twebaze suggested strategic partnerships between local and international investors as a potential solution.
“Ugandans with land can collaborate with foreign investors to develop high-quality properties that meet global standards. Such partnerships could yield better returns and attract tenants in prime areas,” he explained.
Additionally, he recommended integrating more versatile designs for storeyed buildings to cater to various market demands. By combining commercial, residential, and hospitality services, developers can broaden the appeal of their properties.
With the continued expansion of supermarkets, schools, and shopping malls in Kampala’s suburbs, some experts see potential hotspots for real estate development. However, tapping into these opportunities will require strategic planning, market research, and addressing economic challenges to ensure the long-term success of storeyed buildings.
As Muwanga and others continue to seek tenants for their properties, the real estate sector must adapt to changing market needs, ensuring these high-rise structures become functional spaces contributing to the city’s growth.
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