Authored by the expert who managed and guided the team behind the Uganda Property Pack
Everything you need to know before buying real estate is included in our Uganda Property Pack
If you're considering investing in rental property in Uganda, understanding current yields is essential to making a smart decision.
This article breaks down gross and net rental yields across neighborhoods, property types, and cost factors so you can see exactly what returns to expect in 2026.
We constantly update this blog post to reflect the latest market data and trends.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Uganda.
Insights
- Kampala's prime residential occupancy sits around 84%, which means landlords in well-located areas can expect roughly one vacant month per year on average.
- The gap between high-yield suburbs like Kira (up to 9% gross) and prestige areas like Kololo (around 3% gross) is nearly 6 percentage points, making location the biggest yield lever.
- Uganda's rental income tax of 12% on gross rent (with limited deductions) can shave nearly a full percentage point off your net yield compared to markets where expenses are deductible.
- Smaller apartments in Uganda typically generate the highest rent per square meter, which is why studios and one-bedrooms consistently outperform larger homes on yield.
- The Kampala-Jinja Expressway and Standard Gauge Railway projects are expected to lift rental demand in commuter suburbs like Mukono and Seeta over the next few years.
- Property management fees in Uganda run between 8% and 12% of monthly rent, plus about one month's rent for tenant placement, which landlords often underestimate.
- Neighborhoods like Kira, Najjera, and Namugongo attract steady middle-income renter demand, keeping vacancy rates lower than in expat-heavy prime zones.
- Uganda's average gross yield of around 5.5% is higher than many mature markets because investors demand a bigger cash cushion to offset perceived risk and maintenance variability.
What are the rental yields in Uganda as of 2026?
What's the average gross rental yield in Uganda as of 2026?
As of early 2026, the average gross rental yield for residential property in Uganda sits at approximately 5.5% per year, which reflects a blend of apartments, houses, and townhouses across Greater Kampala and the commuter belt.
Most typical residential properties in Uganda fall within a gross yield range of about 3.5% to 9%, depending heavily on location and property size.
Compared to many Western markets where yields hover around 3% to 4%, Uganda's higher average reflects the greater risk premium investors expect in emerging African real estate markets.
The single most important factor influencing gross yields in Uganda right now is purchase price variation between neighborhoods, since rents tend to be more stable while property values swing dramatically from prestige areas to emerging suburbs.
What's the average net rental yield in Uganda as of 2026?
As of early 2026, the average net rental yield for residential property in Uganda is approximately 3.6% per year after accounting for vacancy, taxes, management, and maintenance costs.
The typical gap between gross and net yields in Uganda is about 1.5 to 2.5 percentage points, which is wider than in some developed markets due to higher operating friction.
The expense category that most significantly reduces gross yield in Uganda is the rental income tax, which applies at 12% of gross rent for individuals with limited expense deductions allowed.
Most standard investment properties in Uganda deliver net yields in the range of 2% to 5.5%, with the variation depending on how well landlords control vacancy and maintenance costs.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Uganda.
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 yield is considered "good" in Uganda in 2026?
Local investors in Uganda generally consider a gross rental yield of 7% or higher to be "good," which provides enough cash cushion to absorb unexpected costs and vacancy gaps.
The threshold that separates average-performing properties from high-performing ones is typically around 9% gross yield, though achieving this often requires accepting trade-offs like older stock, smaller units, or fringe locations.
How much do yields vary by neighborhood in Uganda as of 2026?
As of early 2026, the spread in gross rental yields between Uganda's highest-yield and lowest-yield neighborhoods is roughly 6 percentage points, ranging from about 3% in prestige areas to 9% in emerging suburbs.
The neighborhoods that typically deliver the highest rental yields in Uganda are emerging middle-income suburbs like Kira, Najjera, Namugongo, and Kyanja, where strong renter demand meets relatively affordable purchase prices.
The neighborhoods that typically deliver the lowest rental yields are prestige locations like Kololo, Nakasero, Muyenga, and Munyonyo, where buyers pay premium prices for status and scarce land that rents cannot fully justify.
The main reason yields vary so much across Uganda's neighborhoods is that property prices swing dramatically between micro-areas while rents remain more stable, so cheaper suburbs offer better cash returns.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Uganda.
How much do yields vary by property type in Uganda as of 2026?
As of early 2026, gross rental yields across different property types in Uganda range from about 4% for large standalone houses to 8% or more for compact studios and one-bedroom apartments.
Smaller apartments, particularly studios and one-bedrooms, currently deliver the highest average gross rental yield in Uganda because rent per square meter is strongest for compact units.
Large standalone houses and luxury villas currently deliver the lowest average gross rental yield in Uganda because their high capital values are not matched by proportionally higher rents.
The key reason yields differ between property types in Uganda is that smaller units attract a larger tenant pool (young professionals, couples, single expats) and command higher rent per square meter, while big homes face a thinner renter market.
By the way, you might want to read the following:
What's the typical vacancy rate in Uganda as of 2026?
As of early 2026, the average residential vacancy rate in Uganda is approximately 12%, meaning landlords can typically expect their properties to be occupied about 88% of the time.
Vacancy rates across Uganda's neighborhoods range from around 8% in high-demand middle-income suburbs to 15% or more in expat-heavy prime zones with seasonal tenant turnover.
The main factor driving vacancy rates in Uganda right now is correct pricing, since well-priced units in connected suburbs fill quickly while overpriced or poorly located properties sit vacant longer.
Uganda's 12% vacancy rate is broadly comparable to other East African urban markets, though it remains higher than mature markets where rental demand is more stable year-round.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Uganda.
What's the rent-to-price ratio in Uganda as of 2026?
As of early 2026, the average annual rent-to-price ratio in Uganda is approximately 5.5%, which translates to a monthly rent-to-price ratio of about 0.46%.
A rent-to-price ratio above 0.5% monthly (or 6% annually) is generally considered favorable for buy-to-let investors in Uganda, and this ratio is essentially the same as the gross rental yield.
Compared to similar emerging market cities, Uganda's rent-to-price ratio is competitive, offering better cash returns than many East African capitals while still below frontier markets with higher perceived risk.
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.
Which neighborhoods and micro-areas in Uganda give the best yields as of 2026?
Where are the highest-yield areas in Uganda as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Greater Kampala are Kira, Najjera, and Namugongo, where strong middle-income renter demand meets affordable purchase prices.
In these top-performing areas, investors can typically expect gross rental yields in the range of 6.5% to 9%, which is well above the Uganda market average.
The main characteristic these high-yield neighborhoods share is that they are newer suburban growth corridors where rents have risen with jobs and access, but property prices have not fully caught up yet.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Uganda.
Where are the lowest-yield areas in Uganda as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Uganda are Kololo, Nakasero, and Muyenga, where prestige pricing pushes property values far above what rents can justify.
In these low-yield areas, investors typically see gross rental yields in the range of 3% to 5%, which is below the Uganda market average.
The main reason yields are compressed in these prestigious Uganda neighborhoods is that buyers pay a premium for status, diplomacy access, and scarce land, accepting lower cashflow in exchange for perceived security and capital appreciation potential.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Uganda.
Which areas have the lowest vacancy in Uganda as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Uganda are Kira, Najjera, and Ntinda, where a large and steady middle-income renter base keeps units filled consistently.
In these low-vacancy areas, landlords typically experience vacancy rates of around 5% to 8%, meaning properties stay occupied roughly 11 months per year.
The main demand driver keeping vacancy low in these Uganda neighborhoods is the deep pool of local salaried professionals who need affordable, well-connected housing near Kampala's employment centers.
The trade-off investors typically face when targeting these low-vacancy Uganda areas is accepting slightly lower rents compared to prime expat zones, though the steady occupancy often compensates for this.
Which areas have the most renter demand in Uganda right now?
The top three neighborhoods currently experiencing the strongest renter demand in Uganda are Bugolobi, Ntinda, and Kira, which combine good security, connectivity, and a mix of housing options.
The renter profiles driving most of the demand in these Uganda areas are young professionals, corporate employees, NGO staff, and upper-middle-income families seeking reliable utilities and safe neighborhoods.
In these high-demand Uganda neighborhoods, well-priced rental listings typically get filled within two to four weeks, especially for clean apartments with good security and water or power backup.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Uganda.
Which upcoming projects could boost rents and rental yields in Uganda as of 2026?
As of early 2026, the top three upcoming infrastructure projects expected to boost rents in Uganda are the Kampala-Jinja Expressway, the Standard Gauge Railway (Kampala-Malaba phase), and the Lubowa Specialized Hospital.
The neighborhoods most likely to benefit from these Uganda projects are Nakawa, Mukono, Seeta, Namanve, and Lubowa, which sit along the new transport corridors or near major employment generators.
Once these projects are completed, investors in affected Uganda neighborhoods might realistically expect rent increases of 10% to 20% over three to five years, though timing depends on construction progress and job creation.
You'll find our latest property market analysis about Uganda here.
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.
What property type should I buy for renting in Uganda as of 2026?
Between studios and larger units in Uganda, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments generally outperform larger units in Uganda on rental yield, though two-bedroom apartments often win on occupancy stability.
Studios in Uganda typically deliver gross yields of 7% to 9% (around UGX 25 million to 35 million annual rent, or USD 6,500 to 9,000, or EUR 6,000 to 8,300), while larger two to three bedroom units yield closer to 5% to 6%.
The main factor explaining why smaller units outperform in Uganda is that rent per square meter is highest for compact apartments, and the tenant pool of young professionals and singles is much larger.
One scenario where larger units might be the better investment choice in Uganda is targeting corporate or NGO family housing, where three-bedroom townhouses in secure estates command premium rents with longer lease terms.
What property types are in most demand in Uganda as of 2026?
As of early 2026, the most in-demand property type in Uganda is the clean, secure one to two bedroom apartment in a well-connected suburb with reliable water and power backup.
The top three property types ranked by current tenant demand in Uganda are mid-range apartments (one to two bedrooms), family townhouses in gated estates, and standalone houses with annexes that can generate extra income.
The primary demographic trend driving this demand pattern in Uganda is the growing urban middle class of salaried professionals who prioritize security, utilities reliability, and proximity to Kampala's employment centers.
One property type currently underperforming in demand in Uganda is the large luxury villa or mansion, which faces a thin renter pool and often sits vacant for extended periods.
What unit size has the best yield per m² in Uganda as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Uganda is 25 to 50 square meters, which covers studios and compact one-bedroom apartments.
For this optimal unit size in Uganda, the typical gross rental yield per square meter is approximately UGX 350,000 to 500,000 per year (around USD 90 to 130, or EUR 85 to 120), compared to UGX 200,000 to 300,000 for larger units.
The main reason larger units have lower yield per square meter in Uganda is that tenants are not willing to pay proportionally more rent for extra space, while very small units can feel cramped and limit the tenant pool.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Uganda.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Uganda versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Uganda as of 2026?
What are typical property taxes and recurring local fees in Uganda as of 2026?
As of early 2026, the annual property tax for a typical rental apartment in Kampala through KCCA property rates is approximately UGX 500,000 to 1,500,000 (around USD 130 to 400, or EUR 120 to 370), depending on the assessed value and location.
Other recurring local fees landlords must budget for annually in Uganda include rental income tax at 12% of gross rent (often UGX 2 million to 5 million, or USD 500 to 1,300, or EUR 460 to 1,200 for a mid-range apartment) and any applicable ground rent for leasehold properties.
Combined, these taxes and fees typically represent about 15% to 20% of gross rental income in Uganda, which is a significant chunk that many first-time landlords underestimate.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Uganda.
What insurance, maintenance, and annual repair costs should landlords budget in Uganda right now?
The estimated annual landlord insurance cost for a typical rental property in Uganda varies widely by risk and build quality, but a reasonable budget is UGX 500,000 to 2,000,000 (around USD 130 to 520, or EUR 120 to 480) for basic fire and perils coverage.
The recommended annual maintenance and repair budget in Uganda is approximately 1.5% to 2% of property value, which translates to roughly UGX 3 million to 8 million (around USD 800 to 2,100, or EUR 740 to 1,940) for a mid-range apartment.
The type of repair expense that most commonly catches Uganda landlords off guard is plumbing and water tank issues, which can be costly to fix quickly and often require backup water storage solutions.
In total, landlords in Uganda should realistically budget UGX 4 million to 10 million annually (around USD 1,000 to 2,600, or EUR 920 to 2,400) for insurance, maintenance, and repairs combined.
Which utilities do landlords typically pay, and what do they cost in Uganda right now?
In Uganda, landlords are typically expected to cover utilities only if the rent is marketed as "inclusive" (common for serviced or expat rentals), while most standard long-term leases have tenants paying their own electricity, water, and garbage directly.
For landlord-paid utilities in an inclusive setup, the estimated monthly cost in Uganda is approximately UGX 300,000 to 800,000 (around USD 80 to 210, or EUR 75 to 195), covering electricity, water, and basic service charges.
What does full-service property management cost, including leasing, in Uganda as of 2026?
As of early 2026, the monthly property management fee for full-service management in Uganda is typically 8% to 12% of monthly rent, which works out to approximately UGX 150,000 to 400,000 (around USD 40 to 105, or EUR 37 to 97) for a mid-range apartment.
The typical leasing or tenant-placement fee charged on top of ongoing management in Uganda is about one month's rent (UGX 1.5 million to 3 million, or USD 390 to 780, or EUR 360 to 720), plus potential marketing or legal extras depending on the manager.
What's a realistic vacancy buffer in Uganda as of 2026?
As of early 2026, landlords in Uganda should set aside approximately 10% to 15% of annual rental income as a vacancy buffer to account for turnover gaps and tenant sourcing time.
This translates to roughly 5 to 8 vacant weeks per year for mainstream properties in Uganda, or about one to two months for expat-facing units with more seasonal turnover.
Buying real estate in Uganda can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Uganda, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Uganda Bureau of Statistics (UBOS) | It's Uganda's official statistics agency and the closest thing to ground truth for national property price direction. | We used it to anchor the price trend backdrop and as a sanity check so our yield estimates don't contradict broader market direction. |
| Bank of Uganda (BoU) | It's the central bank, and its macro data drives mortgage costs, investor risk premiums, and rent affordability. | We used it to frame the interest rate and inflation environment facing landlords. We also used it to explain why "good" yields in Uganda tend to be higher than in mature markets. |
| Knight Frank Africa Report (Uganda) | Knight Frank is a long-established global real estate consultancy with market teams on the ground in Kampala. | We used it for prime Kampala rent levels and residential occupancy as a proxy for vacancy. We also used it to identify prime neighborhoods and demand direction. |
| Knight Frank Kampala H1 2025 Review | It's a research publication from a major brokerage with repeatable reporting methodology. | We used it as triangulation for Kampala market conditions and prime versus mainstream segmentation. |
| Kampala Capital City Authority (KCCA) | KCCA is the local authority that levies and administers property rates in Kampala. | We used it to model recurring local taxes and fees that reduce net yields. We also used it to explain why the same rent produces different returns depending on location. |
| PwC Worldwide Tax Summaries (Uganda) | It's a widely used professional tax reference that is typically aligned to statutory rules. | We used it to estimate rental income tax drag on net yield. We also used it to keep tax assumptions consistent and clearly stated. |
| Electricity Regulatory Authority (ERA) | ERA is Uganda's regulator publishing official electricity tariff schedules and updates. | We used it to anchor electricity cost assumptions. We also used it to describe how utilities can swing net yield depending on lease structure. |
| UEDCL Tariff Schedule | It's a utility publication showing tariff bands approved by the regulator. | We used it to ground real-world electricity numbers landlords and tenants see on bills. We also used it to justify a practical utilities budget range. |
| National Water and Sewerage Corporation (NWSC) | NWSC is the national utility and its tariffs are the reference point for water and sewerage costs. | We used it to set a realistic water and sewerage budgeting approach. We also used it to explain why water costs vary by customer class and consumption. |
| Insurance Regulatory Authority of Uganda (IRA) | IRA is the regulator of insurance in Uganda, so it's the right official anchor for insurance market context. | We used it to frame the availability and reality of property insurance in Uganda. We also used it to justify using ranges since premiums vary by risk, build quality, and location. |
| African Development Bank (AfDB) | It's a major multilateral lender publishing verified project progress reports. | We used it to identify infrastructure that can shift rent demand corridors. We also used it to support upcoming projects sections with verifiable information. |
| Reuters | Reuters is a top-tier wire service with strong sourcing standards for factual reporting. | We used it to support the pipeline of big connectivity projects that can reshape where renters want to live. We also used it as macro triangulation for jobs and access driving rent pressure. |
| RF Developers Uganda Real Estate Index | It's a private sector index that is unusually explicit about yield ranges and named micro-markets. | We used it only as a triangulation layer for neighborhood-level yield ranges and occupancy assumptions. We cross-checked its prime occupancy and yield story against Knight Frank before using it. |
| Knight Frank Uganda | It's the local office of a major global property consultancy with on-ground expertise. | We used it for professional management fee benchmarks. We also used it to validate local market practices for leasing and property services. |
| The Independent Uganda | It's a respected local news outlet with regular coverage of major development projects. | We used it to track progress on the Lubowa hospital project. We also used it to support our analysis of how major projects can tighten rental demand in nearby areas. |
Get the full checklist for your due diligence in Uganda
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.