Authored by the expert who managed and guided the team behind the Uganda Property Pack
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What is happening in Uganda’s real estate market? Are prices going up or down? Is Kampala still a hotspot for foreign investors? How is Uganda’s government impacting real estate policies and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from Kampala to Entebbe and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Ugandan real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Hoima's real estate market will attract more foreign investors due to the oil industry
The oil industry in Hoima is transforming the region, especially after the discovery of significant oil reserves in the Albertine Graben.
With this discovery, investors are buzzing with excitement, eyeing the potential for substantial returns in the oil sector. This newfound interest is expected to spill over into Hoima's real estate market, making it a hot spot for property buyers. The Ugandan government is also playing a big role by investing heavily in infrastructure projects like the Hoima International Airport and extensive oil roads. These developments are not just about oil; they make the region more accessible and attractive to investors.
Foreign companies such as TotalEnergies and the China National Offshore Oil Corporation have already set up shop in Hoima, showing a strong international interest. Their presence means more infrastructure and housing will be needed, which is great news for the real estate market. The surge in Foreign Direct Investment (FDI) in Uganda, which increased by 80% in 2022 due to the oil and gas sector, underscores the strong interest from foreign investors. This trend is likely to extend to Hoima's real estate market.
With these developments, Hoima is becoming a magnet for foreign investors. The oil industry is not just about extracting resources; it's about building a future. The infrastructure improvements are making the region more appealing, and the presence of big international players is a testament to its potential. For anyone considering buying property in Hoima, now might be the perfect time to get in on the action.
As the oil industry continues to grow, so will the demand for housing and commercial spaces. This is a golden opportunity for real estate investors looking to capitalize on the region's growth. The combination of government support, international interest, and infrastructure development is creating a perfect storm for Hoima's real estate market.
With all these factors in play, it's clear that the oil industry will attract more foreign investors to Hoima's real estate market. The region is on the cusp of a transformation, and those who get in early could reap significant rewards.
Sources: DevelopmentAid, Petroleum Authority of Uganda, Infrastructure.go.ug
2) Foreign buyers will increasingly target Kampala as it grows into a regional business hub
Kampala is becoming a hot spot for foreign buyers, and there's a good reason for it.
In 2022, Uganda experienced a 37% surge in Foreign Direct Investment, reaching $1.4 billion, largely fueled by the oil sector. This trend suggests a growing international interest in the region, with experts predicting that pre-oil investments could average $2 billion annually until 2025. Such financial influxes are a clear sign that Kampala is on the radar for global investors.
Kampala is also making significant improvements in its infrastructure, which is essential for any aspiring business hub. The Kampala City Roads Rehabilitation Project, backed by the African Development Bank and African Development Fund, is a key initiative. This project aims to upgrade nearly 70 kilometers of roads, enhancing transport efficiency and air quality. These developments make the city more accessible and attractive to foreign investors.
Uganda's economic growth forecasts are promising, with expectations of a 7% growth by the end of 2024, and projections of 8.5% in 2025 and 10% in 2026. This positive outlook makes Kampala an appealing destination for those seeking growth opportunities. The city also boasts international schools and healthcare facilities that cater to expatriates, further enhancing its appeal to foreign buyers.
With its growing status as a regional business hub, foreign buyers are increasingly interested in Kampala. The city's strategic location and improving infrastructure are key factors driving this interest. As Kampala continues to develop, it offers a unique blend of opportunities for investors looking to tap into a burgeoning market.
For those considering a move, Kampala's vibrant culture and expanding amenities make it an exciting place to live and invest. The city's ongoing transformation is a testament to its potential as a thriving business center in East Africa.
Sources: Trade.gov, KCCA, Trading Economics
We have made this infographic to give you a quick and clear snapshot of the property market in Uganda. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Urbanization will boost demand for urban housing as more people move to cities
Urbanization is reshaping life in Uganda, with urban population growth hitting 5.1134% in 2023.
People are flocking to cities like Kampala and Kalangala, mainly in search of better jobs and living conditions. This shift is largely driven by the youth, who face rural unemployment rates as high as 78%. The allure of city life is strong, offering more opportunities and a chance to escape the challenges of rural living.
With more people moving to urban areas, the demand for housing is skyrocketing. The government is stepping up by elevating more towns to city status and pushing for urban development. This has sparked a boom in construction permits, as developers, both local and international, see a golden opportunity in the housing market.
Urbanization is not just a trend; it's a powerful force that's transforming Uganda's landscape. The urban population is expected to nearly double between 2010 and 2030, growing at a steady pace of 4.5% annually. This means more people will be looking for homes in the city, driving up demand and creating a vibrant real estate market.
As cities expand, the need for infrastructure and services grows too. This urban growth is a chance for investors to tap into a market that's ripe with potential. The government's proactive stance on urban development is paving the way for a future where cities are not just places to live, but thriving hubs of activity and opportunity.
For those considering buying property in Uganda, now might be the perfect time. With urbanization on the rise, the demand for housing is only going to increase, making it a potentially lucrative investment. The landscape is changing, and being part of this transformation could be both exciting and rewarding.
Sources: Trading Economics, IFPRI Publications, Cities Alliance, UN DESA
4) Kampala rents will rise as the city expands and attracts more residents
Kampala's population is booming, and it's reshaping the city's housing market.
With more people moving in, the demand for housing is skyrocketing. This surge is partly due to the city's population growth, which the Uganda Bureau of Statistics noted as reaching 45.9 million in 2024. As more folks look for places to live, the competition for available homes heats up, naturally pushing rents higher.
Infrastructure projects like the Kampala Institutional and Infrastructure Development Projects are making the city more appealing. These improvements in urban mobility and economic growth are drawing in both residents and businesses. As the city becomes more attractive, the demand for housing continues to rise, and when demand outpaces the supply of homes, rents inevitably climb.
According to Knight Frank's reports from 2023 and 2024, residential property demand is outstripping supply. Even though there was a slight dip in occupancy levels in early 2024, the overall trend shows a strong appetite for housing. This mismatch between what's available and what's needed is a major driver of rent increases.
For those considering buying property in Kampala, it's crucial to understand these dynamics. The city's growth and development are not just statistics; they are shaping the real estate landscape. Investing now could mean capitalizing on future rent hikes as the city continues to expand and attract more residents.
Sources: Knight Frank H2 2023 Report, Kampala Institutional and Infrastructure Development Projects, Knight Frank H1 2024 Report
5) Rental demand in Entebbe will increase due to expatriates and business travelers
Rental demand in Entebbe is on the rise, largely due to an influx of expatriates and business travelers.
One major factor is the expansion of Entebbe International Airport. With a new international passenger terminal and cargo center, the airport can now handle more flights, making it easier for business travelers and expatriates to reach Entebbe. This expansion is a game-changer, opening up the city to more international visitors.
There's also been a noticeable uptick in expatriates choosing to live in Uganda. In the prime residential market of Kampala, which includes Entebbe, occupancy levels rose by 6% from the second half of 2022 to the same period in 2023. This suggests that more expatriates are arriving and looking for rental properties, a trend that's likely to spill over into Entebbe.
Entebbe is also seeing a boom in new hotels and conference centers, which cater to business travelers and tourists. These developments make Entebbe an attractive spot for both groups. The government's push to promote Entebbe as a business hub is further fueling this trend, likely drawing more international businesses and travelers to the area.
With these changes, Entebbe is becoming a hotspot for international business and tourism. The city's growing infrastructure and strategic location make it a prime choice for expatriates and business travelers looking for rental properties.
Sources: Knight Frank, Airport Technology, Knight Frank
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6) Urban areas will see increased housing supply due to government initiatives promoting affordability
The Ugandan government is making strides to boost affordable housing in urban areas.
In 2024, they backed the Housing Finance Bank with a €10.5 million project aimed at providing homes for low and middle-income families. This financial move underscores their commitment to making housing more accessible. The government isn't doing this alone; they're teaming up with private companies through public-private partnerships (PPPs). These partnerships are a smart way to share the load, with the government often providing land or infrastructure while private firms handle the construction.
Peace Kabunga, the Executive Director of Housing Finance Bank, sees these PPPs as a key solution to Uganda’s housing issues. The National Housing Policy of Uganda sweetens the deal for developers by offering incentives and grants to those who focus on affordable housing. This policy makes it more appealing for developers to dive into these projects, knowing there's support and potential profit.
Urban planning documents from 2023-2024 are also in on the action, pushing for new affordable housing zones. These zones are designed as high-density, mixed-use developments, which means they make the most of the land and keep costs down. It's a win-win for everyone involved, especially for those looking to buy property in the city.
With these initiatives, the government is not just talking about affordable housing; they're actively creating opportunities for it. The combination of financial backing, strategic partnerships, and supportive policies is setting the stage for a significant increase in housing supply in urban areas.
Sources: Musbon Real Estate, New Vision, AFD, FAOLEX
7) Property demand in areas near Entebbe International Airport, like Kitoro, will rise with the airport's expansion
The expansion of Entebbe International Airport is set to boost property demand in nearby areas like Kitoro.
With a 27% increase in international passengers in the first half of 2024 compared to 2023, more people are passing through the airport. This surge in traffic means a higher demand for housing and commercial spaces nearby, as travelers and businesses seek convenient locations.
The airport's expansion plans are ambitious, aiming to increase capacity from 2 million to 3.5 million passengers annually by July 2024. Such growth typically attracts businesses, which in turn drives up property demand as companies look for strategic spots close to the airport.
Looking at other regions, it's clear that airport expansions often lead to property booms in surrounding areas. This pattern suggests that Kitoro could see a similar rise in property demand as the airport continues to grow.
For those considering investing in property, Kitoro presents a promising opportunity. The area is poised to benefit from the airport's expansion, with potential for both residential and commercial developments.
As the airport becomes a hub for more travelers and businesses, the local economy is likely to flourish, further increasing the attractiveness of Kitoro for property buyers.
Sources: Uganda Civil Aviation Authority, Uganda Bulletin, ATTA Travel
8) Improved road networks in Gulu will boost its appeal for property investment
The improvement of road networks in Gulu is set to make it a more attractive location for property investment.
In recent years, the Uganda National Roads Authority (UNRA) has been busy upgrading the road infrastructure, adding 684 kilometers to the total network. This includes key projects like the Koboko-Yumbe-Moyo and Kabale-Lake Bunyonyi roads, which have significantly enhanced connectivity in regions such as Gulu. These upgrades mean that travel times have been slashed, making it easier and faster to get around.
For instance, roads like the Atiak-Laropi and Moroto-Lokitanyala have already shown positive results in reducing travel times. This increased accessibility is a game-changer for Gulu, making it more appealing to potential investors and residents. With better roads, people can commute more efficiently, which is a big plus for anyone considering moving or investing there.
As road access improves, property values tend to rise. In areas with enhanced infrastructure, there's been a noticeable trend of urbanization, driving property prices up. Experts are expecting a 5% to 10% increase in property values by 2025, and Gulu is likely to benefit from this economic growth and urbanization.
Improved road networks have also sparked increased commercial activity and business investments in other towns, like Kampala. As Gulu's connectivity gets better, it could attract more businesses and investments, further boosting property values. There's a growing interest in Gulu as a residential area due to this better connectivity, suggesting a positive outlook for property investment.
With these developments, Gulu is not just becoming more accessible but also more vibrant. The improved roads are expected to lead to increased commercial activity, making it a hotspot for both business and residential growth. This transformation is making Gulu a place to watch for anyone interested in property investment.
Sources: New Vision, Uganda Price Forecasts, C-News
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.
9) Eco-friendly homes will gain popularity with rising environmental awareness
Eco-friendly homes are gaining traction in Uganda as environmental awareness continues to rise.
In Uganda, there's a noticeable shift towards sustainable building, with projects like the Uganda Cancer Institute using energy-efficient lighting and rainwater harvesting systems. This trend highlights a growing commitment to eco-friendly construction.
Green building certifications are becoming more common, ensuring that eco-friendly standards are consistently met. The government supports this through initiatives like the Uganda Green Growth Development Strategy, which promotes sustainability in urban planning with green infrastructure and energy.
People's preferences are changing too. Surveys show that nearly half of respondents have clients interested in sustainability, indicating a societal move towards eco-conscious living. This shift is encouraging private developers to include features like solar-powered lamps and water recycling systems in their projects.
These efforts are not just about meeting standards; they reflect a deeper integration of sustainable development into national policies. The focus on eco-friendly infrastructure and energy is becoming a key part of Uganda's urban planning.
As more people embrace eco-friendly living, the demand for homes with sustainable features is likely to grow. This trend is supported by both consumer interest and government-backed initiatives that prioritize green development.
Sources: Capmad, Constructive Voices, NAR Realtor
10) Smart home technology will boost the appeal of modern properties in Kampala
Smart home technology is making properties in Kampala more attractive.
In recent years, especially around 2023 and 2024, there has been a noticeable surge in the smart home market in Uganda. This trend is expected to continue, with a projected growth of 13.01% from 2024 to 2029. This means more people are interested in homes with smart features, making these properties more appealing.
Surveys show that about 75% of potential home buyers are willing to pay extra for smart homes. This demand is driven by the desire for convenience, time savings, and better security. As a result, real estate listings in Kampala are increasingly showcasing smart home features to attract buyers looking for modern, tech-savvy homes.
The media is also playing a role by highlighting the benefits of smart home technology, such as energy efficiency and security. This increased media attention is raising awareness and interest among potential buyers, making properties with smart features even more appealing.
In Kampala, the adoption of smart home technology is not just a trend but a significant factor in the real estate market. Buyers are drawn to the idea of living in homes that offer modern conveniences and enhanced security, which are becoming standard expectations.
As more people become aware of the advantages of smart homes, the demand for such properties is likely to grow. This shift in buyer preferences is reshaping the real estate landscape in Kampala, making smart home technology a key selling point.
Sources: Exploding Topics, Statista Market Forecast, Nexa Home Automation
11) Tech hubs in Kampala will boost Nakawa’s appeal to young professionals
The rise of tech hubs in Kampala is making neighborhoods like Nakawa more attractive to young professionals.
In 2023 and 2024, investment in tech infrastructure in Kampala has soared, leading to the development of smart, energy-efficient apartments. These modern living spaces are a hit with young professionals and tech workers, offering the perfect blend of lifestyle and work needs for the tech-savvy crowd.
Tech startups and companies in Kampala are booming, with big names like SafeBoda and EzyAgric creating thousands of jobs. This surge in the tech sector not only opens up numerous job opportunities but also builds a vibrant community of like-minded individuals. For young professionals eyeing career growth and networking, Nakawa is becoming a hotspot.
The demand for co-working spaces and innovation hubs is climbing, with spots like Innovation Village and Hive Colab offering professional environments that foster collaboration and innovation. This growth is a magnet for young professionals who thrive on networking and creative synergy.
With the tech scene buzzing, Nakawa is transforming into a desirable neighborhood for those in the tech industry. The area is not just about work; it's about being part of a community that values progress and innovation.
As more tech hubs emerge, the appeal of Nakawa continues to rise, drawing in young professionals eager to be at the heart of Kampala's tech revolution.
Sources: Nucamp, Tech in Africa
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12) New shopping malls in Kampala will boost property values in nearby neighborhoods
New shopping malls in Kampala are set to boost property values nearby.
Picture this: bustling streets, more shops, and a lively atmosphere. That's what new malls bring. In the first half of 2024, the retail sector saw a 30% jump in turnover and a 5% rise in foot traffic. This buzz is partly thanks to projects like the Kampala Flyover, which makes getting around easier and draws in new businesses.
History tells us that when malls pop up, property values around them tend to climb. Take Black Friday 2019, for instance. Malls in Kampala enjoyed a 15.7% boost in foot traffic and a 19.8% increase in revenue. This shows a clear pattern: malls help nearby property values go up.
People want to live and work near these shopping hubs. In places like Nakasero, there's a shift towards hybrid workspaces and mixed-use developments. This trend is driving up demand for homes, and investors are taking note. Back in 2019, there was a 31% rise in commercial valuation instructions, showing growing interest.
Infrastructure is key. Road expansions and better public transport are making Kampala more connected. The Kampala Flyover is a prime example of how these improvements can make areas more appealing, attracting businesses and residents alike.
Sources: Monitor, Knight Frank
13) Demand for properties with green features will grow due to rising interest in sustainable living
In Uganda, interest in sustainable living is on the rise.
People are becoming more aware of climate change, and this is sparking a desire for homes that match their eco-friendly values. Media coverage has played a big role in spreading this awareness, making sustainability a hot topic in the country.
Developments like 256 Estates and The Vision City Project are leading the way with green features such as solar power and water recycling systems. These aren't just for show; they help cut down on energy costs, which is a big plus for anyone looking to buy a home.
Surveys are backing this up, too. In 2024, the National Association of REALTORS found that nearly half of homebuyers are interested in sustainability. This shows a clear shift in what people want, and it's pushing the real estate market to adapt.
The government is also stepping in with incentives and educational campaigns. Programs like Uganda’s Vision 2040 are encouraging developers to go green. These efforts highlight the cost savings and environmental benefits of sustainable homes, making them even more appealing to buyers.
With all these factors at play, it's clear that eco-friendly homes are becoming a top choice for many Ugandans. The combination of consumer interest, government support, and practical benefits is driving this trend forward.
Sources: 256 Estates, National Association of REALTORS, African Property Magazine
14) Property values in well-connected areas of Kampala will rise with the expansion of public transport
The expansion of public transport in Kampala is set to increase property values in well-connected areas.
With the planned BRT routes at the City Center, traffic flow is expected to improve, making these areas more desirable. Historically, infrastructure projects like these have boosted property values by reducing congestion and enhancing accessibility. This isn't just a Kampala phenomenon; cities like Tokyo and Singapore have seen similar trends.
In Kampala, commuter towns on the outskirts are becoming increasingly popular. Residents are willing to pay more for properties near transport hubs because they offer better accessibility and reduced travel times. This trend highlights the premium placed on convenience and connectivity.
As public transport networks expand, areas with improved links often see a rise in property demand. People value the ease of commuting, which translates into higher property prices. This is a common pattern observed in urban development worldwide.
For potential buyers, investing in properties near these new transport routes could be a smart move. Such areas are likely to appreciate in value as they become more accessible and attractive to residents. The ripple effect of improved transport is significant in shaping real estate markets.
In summary, the expansion of public transport in Kampala is not just about easing traffic; it's about transforming the real estate landscape. Properties in well-connected areas are poised for growth, making them a worthwhile investment for those looking to capitalize on this development.
Sources: JICA Report, Knight Frank Report, The Monitor
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Uganda. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Real estate interest in northern Uganda will grow with infrastructure improvements
Infrastructure improvements in northern Uganda are set to significantly boost real estate interest in the region.
In recent years, the Development Initiative for Northern Uganda (DINU) has poured funds into infrastructure, especially focusing on road rehabilitation. This effort is all about making it easier for people to get to markets and services, which naturally makes the area more appealing for real estate. Think of it as laying down the welcome mat for developers.
The Uganda National Roads Authority (UNRA) has been busy completing major road networks, like the Kapchorwa-Suam, Atiak-Laropi, and Moroto-Lokitanyala roads. These projects have made the region much more accessible. When roads improve, travel becomes a breeze, and suddenly, more folks are interested in living and working there.
We've seen it before in other parts of Uganda: when infrastructure gets a facelift, property values tend to rise. This trend suggests that northern Uganda could be on the brink of a real estate boom. As roads and services get better, more people will want a piece of the pie, driving up demand and property prices.
For investors, this is a golden opportunity. With infrastructure on the up and up, the region is becoming a hot spot for those looking to invest in real estate. It's like finding a hidden gem before everyone else catches on.
Sources: Development Initiative for Northern Uganda (DINU), Uganda National Roads Authority (UNRA) Budget Framework Paper FY2023/24, Kampala Property Market Performance Review - Knight Frank
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.