All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.
Yes, the analysis of Kampala's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Kololo? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Naguru or Nakasero where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Uganda Property Pack.
Will property prices increase in Kampala in 2025?
Yes, property prices in Kampala are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Kampala remains one of the hottest cities in the region for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Kampala’s price growth aren’t going anywhere.
Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Kampala’s status as a cultural, financial, and political hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Kampala
Here are some factors suggesting prices could increase:
The ongoing urbanization and population growth in Kampala are expected to continue, leading to increased demand for housing. As more people move to the city, the pressure on available housing will likely drive prices up.
Infrastructure development projects, such as road expansions and public transport improvements, are set to enhance connectivity in and around Kampala. These improvements are likely to make certain areas more attractive, boosting property values.
The government’s focus on economic growth and investment in the real estate sector is expected to attract more investors, both local and international, which could lead to increased competition and higher property prices.
Kampala’s growing reputation as a business hub in East Africa is attracting multinational companies and expatriates, increasing demand for both residential and commercial properties.
The limited availability of land for new developments in central areas of Kampala is likely to keep supply constrained, pushing prices higher as demand continues to grow.
The trend of middle-class growth in Uganda is expected to continue, with more people seeking to invest in property as a means of securing their financial future, thereby increasing demand.
The increasing popularity of mixed-use developments, which combine residential, commercial, and recreational spaces, is expected to attract more buyers and investors, driving up property values in these areas.
Signals pointing to a property price decrease in Kampala
Here are some factors suggesting prices could fall:
Rising inflation and living costs are putting pressure on household budgets, potentially reducing the purchasing power of potential homebuyers and slowing down demand.
Higher interest rates could make mortgage financing more expensive, discouraging some buyers from entering the market and potentially cooling demand.
Economic uncertainties, both locally and globally, could impact investor confidence and lead to a slowdown in property market activity, affecting price growth.
Get fresh and reliable information about the market in Uganda
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
If property prices go up in Kampala, how much would they increase by?
If real estate prices in Kampala were to rise in 2025, the increase would likely be around 8% to 12% of their 2024 values.
Typically, real estate in emerging markets like Kampala appreciates by approximately 5% to 15% annually over the long term. However, fluctuations can occur depending on factors such as location, infrastructure development, and property type.
It means that, if you spot a charming 2-bedroom apartment in Kololo for 350,000,000 UGX today, don't be surprised if it's priced between 378,000,000 and 392,000,000 UGX this time next year.
To give you a better understanding, here is a table that shows 7 types of Kampala real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 8%, 10%, and 12%.
| Type of Property | Average Price in 2024 (UGX) | Price in 2025 (8% increase) | Price in 2025 (10% increase) | Price in 2025 (12% increase) |
|---|---|---|---|---|
| Apartment (60 sqm / 646 sqft) | 350,000,000 UGX | 378,000,000 UGX | 385,000,000 UGX | 392,000,000 UGX |
| Modern Apartment (75 sqm / 807 sqft) | 500,000,000 UGX | 540,000,000 UGX | 550,000,000 UGX | 560,000,000 UGX |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 1,200,000,000 UGX | 1,296,000,000 UGX | 1,320,000,000 UGX | 1,344,000,000 UGX |
| Studio (30 sqm / 323 sqft) | 200,000,000 UGX | 216,000,000 UGX | 220,000,000 UGX | 224,000,000 UGX |
| Loft (80 sqm / 861 sqft) | 700,000,000 UGX | 756,000,000 UGX | 770,000,000 UGX | 784,000,000 UGX |
| Townhouse (150 sqm / 1,615 sqft) | 1,500,000,000 UGX | 1,620,000,000 UGX | 1,650,000,000 UGX | 1,680,000,000 UGX |
| Investment Property (50 sqm / 538 sqft) | 300,000,000 UGX | 324,000,000 UGX | 330,000,000 UGX | 336,000,000 UGX |
Everything you need to know is included in our Property Pack for Kampala
If real estate prices go up in Kampala, which areas are likely to see the biggest increases?
Today, people who want to move to Kampala are looking for a blend of modern amenities and vibrant social scenes, which Kololo offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Bugolobi has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Kampala market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Kololo | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Naguru | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Kampala. |
| Bugolobi | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Nakasero | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Muyenga | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Munyonyo | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of historic areas, is boosting long-term value. |
| Ntinda | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Kira | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Lubowa | Medium-High | Its proximity to Kampala, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Kansanga | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Buziga | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Entebbe Road | High | Upcoming restoration of key infrastructure and high-profile cultural projects are driving a renewed focus on this central, strategic location. |
-The best areas to buy a property in Kampala
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Kampala?
In 2025, Kampala real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Kampala are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Kampala, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Kampala's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
Make a profitable investment in Uganda
Better information leads to better decisions. Save time and money. Download our guide.
