City status transforms Fort Portal’s real estate sector
An aerial view of Fort Portal City. Many commercial and residential buildings have sprung up in the last three years. PHOTO/ALEX ASHABA
What you need to know:
- Small-scale investors have opted to develop their residential properties for short-term tourist rentals.
- Beyond the city, Kabarole District, home to several picturesque crater lakes, has also witnessed infrastructure growth with cottage hotels and other accommodation facilities springing up.
The cost of a thing is in its value. Three years ago, one could buy a plot of land in Fort Portal at a fairly low price, now they have to fork out more than double for the same.
The new physical infrastructure has swallowed up the plain landscape, as real estate and hospitality industries shape the business in the city.
Divided into north and central divisions, Fort Portal City, previously a municipality until its elevation in July 2020, has also witnessed revenue growth, owing to favourable tax policies for investors.
“There has been an increased number of buildings and our property tax has increased from Shs800 million to Shs1 billion this year,” Ms Betty Mujungu, the city deputy mayor, says.
Ms Mujungu credits that milestone to the introduction of the Integrated Revenue Administration System for tax registration.
The city’s tax base has widened with the administration collecting local hotel tax, ground rent, property, occupational permit, and business licence.
According to Mr Samuel Musana, the city physical planner, 82 building plans were approved in the last financial year, with construction waiting to commence.
Since 2020, more than 700 building plans have been approved and several buildings constructed. It now takes 30 days to have a building plan approved.
Mr Musana says the city is finalising a comprehensive physical development plan for 2022 to 2040 that will be used as a blueprint for future developments and ensure orderly and sustainable growth.
Some of these developments in residential and commercial housing have changed the city landscape. The green is blended with structures on different streets, beautifying the city.
The once quiet neighbourhoods like Butangwa, Booma, Kasusu, Mugoma, Kyabikokoni, and Kagote in the central division have become bustling centres following increased real estate developments. Landlords have also been able to cash in too.
For example, several residential houses have been erected around Kagote, owing to its proximity to Mountains of Moon University, the army’s Mountain Division headquarters, Katojo prison, and nearby Saaka Airfield in Kichwamba Sub-county.
These developments, coupled with the mushrooming of hotels and hostels have caused land prices in the area to shoot up. However, road accessibility is still a challenge during the rainy season.
A 50x100ft plot of land in Kagote ranges from Shs50 million to Shs100m. Land further from Kagote-Ssaka road may be more affordable, typically ranging from Shs20 million to Shs50m.
“Those of us who have been here for more than 20 years couldn’t have imagined that this place would develop; it was once notorious for criminal activities. But now, purchasing a 50x100 plot of land is a costly endeavour, with numerous investors vying for available land. Those with financial means are seizing the opportunity,” Ms Agnes Katusiime, a Kagote resident, says.
Mr John Byamugisha, another resident, predicts that a plot of land that currently costs Shs50m will have more than doubled in the next 10 years.
The North Division has areas like Rubingo, Kiguma, Kitumba, Ibonde, Karambi, Gweri, and Butebe, presenting investment opportunities in real estate development.
Rwengoma and Kahungabunyoyi areas on the Fort Portal-Bundibugyo road in Central Division offer undeveloped and developed plots of land, making them attractive for residential and commercial businesses.
“Seven years ago, rent for a business room would cost Shs50,000 to Shs70,000 a month, but the same room now costs between Shs100,000 and Shs150,000,” Mr James Kugonza, a business owner in Rwengoma, says.
The surge in demand for rental spaces has also been felt in the city. Rental prices on major streets such as Balya, Ruhandiika, Malibo, Kyembabe Road, and Rukiidi which were previously at Shs500,000 per room, have more than doubled.
Mr Alex Ainomugisha, a city resident, says some investors are buying undeveloped plots and properties with buildings to either renovate or construct new structures.
According to Mr Ainomugisha, a 50x100ft plot of land in the city centre ranges from Shs200 million to Shs500m depending on location but the same plots can also cost between 500m and Shs1 billion.
He attributes the high prices to shortage of rental spaces for businesses.
Small-scale investors have opted to develop their residential properties for short-term tourist rentals.
Beyond the city, Kabarole District, home to several picturesque crater lakes, has also witnessed infrastructure growth with cottage hotels and other accommodation facilities springing up.
