Greater Kampala residential property prices remain stable
Apartments in Kampala. Much of Kampala, according to Ubos, has been taken up by commercial properties, leaving few options for residential properties. PHOTO | FILE
What you need to know:
- The increase, according to Ms Nakayenga, was due to increase property purchase in Wakiso District as a number of people have resorted to reside outside Kampala, which is getting crowded.
Price of residential property in the Greater Kampala Metropolitan Area decreased to -5.8 percent in the quarter ended March, according to Uganda Bureau of Statistics (Ubos).
According to quarterly Residential Property Price Index for the 2021/22 third quarter, property rates for residential properties decreased to -5.8 percent from - 4.5 percent in in the second quarter.
Data from Ubos indicate that property rates in Kampala Central and Makindye Division registered the largest reduction, declining by -7.9 percent compared to 17.4 percent in the second quarter.
Ms Juliet Nakayenga, the Ubos senior statistician Uganda, said beyond the two areas, residential price decreases were also registered in Nakawa Division, which recorded a residential property inflation of - 7.8 percent compared - 2.7 percent decline during the 2021/22 second quarters.
In Kawempe and Rubaga divisions, prices reduced by - 7.6 percent from - 2.3 percent.
However, Ms Nakayenga noted an increase in residential property inflation in Wakiso District, which rose to -1.9 percent for the third quarter compared to - 20.6 percent in 2021/22 second quarter.
The increase, according to Ms Nakayenga, was due to increase property purchase in Wakiso District as a number of people have resorted to reside outside Kampala, which is getting crowded.
Additionally, much of Kampala, according to Ubos, has been taken up by commercial properties, leaving few options for residential properties.
Property prices have remained subdued, amid a volatile economic period, characterized by runaway fuel prices, and commodity prices, among them soap.
Fuel prices have since the beginning of the year, according to Ubos, risen by an average of 36 percent due to global factors, among them the war between Russia and Ukraine.
During the first quarter of the 2020/21 financial year property prices in the real estate sector fell by an average of 10.5 per cent.
The fall, Ubos noted, was occasioned by slowed activity in the general performance of the economy, which had been subdued by Covid-19, which ravaged much of the country in 2020 and 2021.
According to data released then property prices in the real estate sector, especially rentals, fell by an average of 10.5 per cent with Kampala and Makindye registering the highest declines.
The Residential Property Price Index covers some areas of the Greater Kampala Metropolitan Area, among them Kampala Central, Wakiso, Makindye, Nakawa, Kawempe and Rubaga.
