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Property prices in Kampala are rising strongly, with residential values up 3.8% year-on-year in Q1 2025 and forecasts predicting 8-12% growth by year-end.
As we reach mid-2025, Kampala's property market is experiencing remarkable momentum, driven by rapid urbanization, infrastructure investments, and strong demand from both local and international buyers. The combination of a 5.3% annual population growth rate and limited housing supply in prime areas is pushing prices steadily upward.
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Property prices in Kampala are definitively rising, with the Residential Property Price Index climbing from 108.83 in Q4 2024 to 109.54 in Q1 2025.
Market experts forecast an 8-12% price increase for 2025, continuing Kampala's long-term appreciation trend of 5-15% annually.
| Metric | Current Status (June 2025) | Forecast/Trend |
|---|---|---|
| Average 1BR Apartment (Suburbs) | UGX 100-180 million ($27,270-$49,000) | Rising 8-12% |
| Average 2BR Apartment (Prime) | UGX 350 million ($95,000) | Strong demand |
| YoY Price Growth | 3.8% (Q1 2025) | Accelerating to 8-12% |
| Rental Yields | 7-9% average | Rising |
| Market Demand | High, exceeding supply | Increasing |
| Infrastructure Investment | UGX 5.7 trillion allocated | Boosting values |
| Population Growth | 5.3% annually | Sustaining demand |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are current property prices in Kampala as of June 2025?
Property prices in Kampala vary significantly based on location and property type, with prime areas commanding premium rates.
In mid-income suburbs like Kira, Najeera, Kulambiro, and Naalya, a one-bedroom apartment typically costs between UGX 100 million and UGX 180 million (approximately $27,270–$49,000). These areas offer a balance between affordability and accessibility to urban amenities.
Prime locations such as Kololo, Nakasero, and Naguru see much higher prices, with two-bedroom apartments averaging around UGX 350 million (about $95,000). In the city center, property prices average $1,111 per square meter, while suburban areas see rates around $976 per square meter.
The average house price across Kampala has reached USh 612.5 million as of April 2025, with properties ranging from as low as USh 100 million to luxury homes exceeding USh 1.5 billion. This wide range reflects the diverse market segments catering to different buyer profiles.
Greater Kampala's middle-income areas such as Kulambiro, Kikaya, Mulago, and Ntinda have sustained demand for homes priced below Shs 350 million, making them attractive for first-time buyers and investors seeking rental income opportunities.
How much have property prices increased in the past year?
Property prices in Kampala have shown steady growth over the past year, with clear acceleration in recent months.
The Uganda Residential Property Price Index rose from 108.83 in Q4 2024 to 109.54 in Q1 2025, reflecting a year-on-year growth rate of 3.8% as of March 2025. This represents a significant recovery from earlier volatility in the market.
Knight Frank reports that prime residential rents grew by 4% for two-bedroom units and 1% for three-bedroom units on a year-on-year comparison in 2024. The growth has been particularly notable in newly completed prime apartment units offering larger living spaces and better amenities.
In specific high-demand areas, the price increases have been even more dramatic. Some prime neighborhoods have seen property values rise by up to 6% in just six months, with occupancy rates in prime areas increasing by a similar margin.
The rental market has also strengthened, with average monthly rents for two-bedroom apartments in prime locations reaching $2,250, up 7% from the previous year. This rental growth supports property value appreciation as investors seek better yields.
Which areas in Kampala are seeing the fastest price growth?
Several neighborhoods in Kampala are experiencing exceptional price growth due to various factors including infrastructure development and changing buyer preferences.
Kira Town leads the growth charts with rapid urbanization and infrastructure upgrades fueling a projected 5-10% price increase in 2025. The area benefits from improved road connectivity and proximity to the city center while offering more affordable options than prime locations.
Kololo and Kampala Central continue to see above-average price growth driven by high demand, limited stock, and luxury developments. The shift from standalone houses to modern apartment blocks in these areas reflects changing market dynamics and land use optimization.
Bugolobi and Muyenga are experiencing significant appreciation due to ongoing gentrification, new transport links, and eco-friendly projects. These areas attract young professionals and expatriates seeking modern amenities with character.
Nakawa and Luzira represent emerging hotspots where infrastructure projects and commercial activity are creating opportunities for future appreciation. Smart investors are targeting these areas before prices reach their full potential.
It's something we develop in our Uganda property pack.
What types of properties are experiencing the biggest price increases?
Different property types in Kampala are experiencing varied levels of price appreciation based on market demand and buyer preferences.
Apartments and condominiums are seeing the fastest price increases, especially two- and three-bedroom units in prime areas. This segment benefits from strong demand from expatriates and diaspora buyers who prefer the security and amenities of modern apartment living.
Developers are increasingly replacing old standalone homes with high-density apartment blocks in areas like Kololo and Nakasero. This transformation reflects both land value optimization and shifting buyer preferences toward community living with shared amenities.
Serviced apartments have seen a remarkable 12% increase in demand in 2024, driven by the growing expatriate community and Ugandans living abroad. These properties offer a blend of space, convenience, and high-quality amenities that appeal to international residents.
While standalone homes maintain steady demand, particularly among expatriates, their price growth has been slower compared to apartments due to limited supply and aging stock in prime areas. However, secondary suburbs like Muyenga, Buziga, and Munyonyo are emerging as alternatives for those seeking detached homes.
Mixed-use developments combining residential, commercial, and recreational spaces are attracting premium prices as they cater to modern lifestyle preferences and offer investment diversification opportunities.
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How have Kampala property prices evolved over the past 5 years?
Kampala's property market has experienced significant fluctuations over the past five years, reflecting both economic challenges and resilient growth.
In 2021, property prices peaked with the Housing Index reaching 114.8, representing the height of post-pandemic recovery. This was followed by a temporary decline in 2022, with the Residential Property Price Index falling by 5.8% in Q1, though the market quickly rebounded.
The period from 2023 to 2025 has seen prices resume their upward trajectory, with year-on-year growth rates stabilizing around 3-4%. Market confidence has strengthened considerably, with 86% of estate agents expecting to reach their sales targets in 2025, up from 73% in 2024.
Infrastructure development has played a crucial role in this evolution, with the government's tarmacked road network expanding from 3,112 kilometers in 2010/11 to 6,287.6 kilometers by 2025, significantly improving property accessibility and values.
The market has also seen a shift in buyer preferences, with increasing demand for modern apartments over traditional standalone homes, particularly in prime areas where land scarcity drives vertical development.
What are the property price forecasts for 2026 and beyond?
Property market experts and analysts provide optimistic forecasts for Kampala's real estate sector over the coming years.
For 2025-2026, market forecasts suggest property prices will rise by 8-12% compared to 2024 values. This projection aligns with the typical 5-15% annual appreciation seen in emerging markets like Uganda over the long term.
The medium-term outlook (5 years) anticipates continued annual growth of 5-15%, driven by sustained urbanization, infrastructure upgrades, and strong population growth. Uganda's economy is projected to grow at 6.3% in 2024/25, supporting real estate appreciation.
Long-term projections (10-20 years) are particularly bullish, with Kampala's population expected to reach 7 million by 2035. This demographic pressure will likely ensure demand continues to outpace supply, especially in central and well-connected suburbs.
Vertical development is expected to accelerate, with more high-rise apartments replacing low-density housing in prime areas. This transformation will help accommodate growing demand while maintaining price appreciation.
The completion of major infrastructure projects, including the Kampala-Jinja and Busega-Mpigi express highways, will further enhance property values in connected areas, creating new investment hotspots.
How is the 2025/26 infrastructure budget impacting property prices?
The government's infrastructure investments are having a direct positive impact on property values across Kampala.
With UGX 5.698 trillion allocated to the Ministry of Works and Transport in the 2025/26 budget, major road and transport projects are enhancing accessibility and driving property appreciation in previously underserved areas.
The Kira-Matugga road upgrade and other urban mobility projects have contributed to rapid price growth in secondary suburbs, with areas like Kira Town seeing 5-10% annual appreciation. These improvements reduce commute times and make suburban living more attractive.
The expansion of broadband internet connectivity to 72% geographical coverage has made remote work more feasible, increasing demand for properties in areas previously considered too distant from the city center.
Digital infrastructure improvements, including the rollout of 36 electronic government services, have streamlined property transactions and reduced bureaucracy, making the real estate market more efficient and attractive to investors.
We explore these infrastructure impacts in detail in our Uganda property pack.
We made this infographic to show you how property prices in Uganda compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What do real estate experts predict for Kampala's market?
Real estate professionals and market analysts provide consistently positive outlooks for Kampala's property market.
Knight Frank reports that rental yields will continue rising as demand exceeds supply, particularly in mid- and high-end segments. The firm notes sustained demand for prime office space with Grade A rents at $16.5 per square meter per month, representing a 10% increase.
Market experts predict accelerated decentralization, with more buyers and renters seeking affordable, modern housing in secondary suburbs. This trend is creating new investment opportunities beyond traditional prime areas.
Some analysts caution that prime areas may see slower growth or even stagnation due to potential oversupply of luxury apartments and shifting demand patterns. However, this is balanced by strong fundamentals in the broader market.
The anticipated implementation of regulatory reforms, including the Real Estate Bill and Valuation Bill, is expected to increase market transparency and professionalism, supporting long-term sustainable growth.
Investment advisors highlight Kampala's competitive position within East Africa, with property prices lower than Nairobi's but offering similar or better rental yields, making it attractive for regional investors.
Is demand for Kampala property increasing or decreasing?
Demand for residential real estate in Kampala is definitively increasing, driven by multiple strong fundamentals.
Rapid urbanization with a 5.3% annual population growth rate ensures a constant influx of new residents seeking housing. This demographic pressure is particularly acute as rural-to-urban migration continues unabated.
The expatriate community and diaspora buyers are driving demand for quality housing, with serviced apartments seeing 12% demand growth. These international buyers often pay premium prices for properties meeting their standards.
Economic growth at 6.5% in 2024/25 is creating a larger middle class with increased purchasing power. More Ugandans can now afford to buy homes, transitioning from the rental market to property ownership.
Foreign direct investment and the ongoing development of the oil and gas sector, though slightly moderated from previous expectations, continue to attract international workers requiring quality accommodation.
Limited land supply in central areas creates scarcity value, with developers maximizing plot usage through vertical development to meet demand while maintaining price appreciation.
How do Kampala prices compare to Nairobi and Kigali?
Kampala offers a competitive value proposition compared to other major East African capitals.
| City | Apartment Price (City Center, $/m²) | House Price (Suburbs, $/m²) | 1BR Rent (City Center, $) | Rental Yield | Market Position |
|---|---|---|---|---|---|
| Kampala | $1,111 | $976 | $352 | 7-9% | Mid-range, high yields |
| Nairobi | $1,743 | $998 | $395 | 5-7% | Premium pricing |
| Kigali | ~$900-1,000 | ~$800-900 | ~$300-350 | 6-8% | Lower cost option |
Kampala's property prices are approximately 36% lower than Nairobi's in city center locations, making it more accessible for investors while still offering strong rental yields that often exceed those in Kenya's capital.
The cost of living in Kampala is about 8% less than in Nairobi, which supports the property market by leaving residents with more disposable income for housing expenses.
Compared to Kigali, Kampala offers a more mature market with better liquidity and a wider range of property options, though at slightly higher prices reflecting its larger economy and population.
This positioning makes Kampala attractive for investors seeking East African exposure without Nairobi's premium pricing, while offering better yields and market depth than smaller capitals.
What economic factors are driving price increases in 2025?
Several powerful economic and demographic forces are propelling Kampala's property market upward.
Population growth exceeding 5.3% annually creates relentless housing demand, with over 4 million residents currently and projections reaching 7 million by 2035. This demographic pressure ensures sustained buyer and renter demand.
Urbanization rates remain among Africa's highest, with rural-to-urban migration driven by economic opportunities, education, and healthcare access. Each wave of migrants requires housing, supporting price appreciation.
Foreign investment, particularly from the diaspora and expatriate community, brings hard currency into the market. These buyers often purchase cash, reducing transaction friction and supporting higher prices.
Limited land supply in desirable areas creates natural scarcity. With most prime land already developed, new projects must either acquire existing properties at premium prices or develop in secondary areas.
Infrastructure investments totaling trillions of shillings are opening new areas for development while improving existing neighborhoods. Each new road or utility upgrade immediately impacts surrounding property values.
You'll find comprehensive economic analysis in our Uganda property pack.
How are interest rates and inflation affecting property affordability?
Interest rates and inflation present both challenges and opportunities in Kampala's property market.
Mortgage rates remain high at approximately 21.4% for 20-year loans, significantly limiting affordability for local buyers relying on financing. This creates a market dominated by cash buyers and those with substantial down payments.
Uganda's inflation rate has moderated to 3.9% from previous highs, helping stabilize construction costs and improving buyer confidence. However, this still impacts purchasing power for middle-income buyers.
The high interest rate environment paradoxically supports property prices by limiting supply - fewer speculative developments proceed when financing is expensive, maintaining scarcity in quality properties.
Many Ugandans are pushed toward the rental market due to financing constraints, which strengthens rental demand and yields. This makes buy-to-let investments particularly attractive for cash buyers.
The price-to-rent ratio of 14.13 years remains favorable compared to global standards, suggesting property purchases still offer value despite high interest rates, particularly for investors taking a long-term view.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Kampala are experiencing strong growth as we reach mid-2025, with all indicators pointing to continued appreciation. The combination of rapid urbanization, infrastructure development, and sustained demand from both local and international buyers creates a compelling investment case.
The answer to whether property prices are going up in Kampala is definitively: Yes, a lot. With current growth at 3.8% accelerating to projected 8-12% by year-end, strong fundamentals including 5.3% population growth, and massive infrastructure investments, Kampala's property market shows no signs of slowing down.
Sources
- The Africanvestor - Kampala Price Forecasts
- Uganda Bureau of Statistics - Residential Property Price Index
- Knight Frank - Kampala Market Performance Review H2 2024
- Monitor - 2025/2026 Budget Reading
- Trading Economics - Uganda Housing Index
- Uganda Property Centre - Average Prices Report
- Uganda Business News - Kampala Property Market Report
- Global Property Guide - Uganda Price History