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Where are the best places to invest in Uganda right now? Is Kampala still the top pick, or are cities like Entebbe, Jinja, and Mbarara gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Uganda and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Kira Town is booming with rapid urbanization and rising demand for residential properties
Kira Town is buzzing with a real estate boom.
One big reason for this surge is the expected rise in property prices by 5% to 10% in 2025. This jump is fueled by the town's rapid urbanization and a growing middle class eager to invest in homes. The town is transforming quickly, and everyone wants a piece of it.
Residential construction is on the rise, thanks to infrastructure upgrades like the newly completed Mbalwa Church road and Kira-Matugga road in 2024. These roads make Kira Town more accessible, drawing in potential residents and investors who see the town's potential. It's becoming a hot spot for those looking to settle down.
The town's population is booming, partly because of its close proximity to Kampala. Many people working in the capital find Kira Town a convenient place to live, which naturally boosts the demand for housing. Local real estate agencies are buzzing with activity, trying to keep up with this demand.
With more people moving in, the town is evolving into a vibrant community. The influx of new residents is not just about numbers; it's about creating a lively atmosphere that attracts even more interest. This cycle of growth is a key driver of the real estate boom.
Investors are taking note of Kira Town's potential. The combination of urbanization, infrastructure improvements, and population growth makes it a prime location for real estate investment. It's a place where the future looks bright, and everyone wants to be part of the action.
Sources: Wikipedia, Kira Municipal Council, Real Estate News
2) Mukono Town is gaining interest for its strategic location on the Kampala-Jinja highway, driving up property values
Mukono Town is catching eyes due to its prime spot along the Kampala-Jinja highway, which is boosting property values.
One big draw is the Kampala-Jinja Expressway project, featuring a new 8-lane road designed to cut down traffic jams. This makes Mukono more accessible and a hot spot for investment. The expressway is part of a larger plan to enhance the region's infrastructure, making it a magnet for those looking to invest in property.
Property prices are climbing, driven by high demand and limited housing supply. As more people move to the area, the need for homes grows, pushing prices up. The African Development Bank's backing of the expressway aligns with Uganda's Vision 2040, aiming to make the country more competitive and economically robust.
Mukono's proximity to Kampala and its strategic location are fueling commercial and residential developments. This is attracting both local and international investors who see the potential for growth. The town's rapid population increase signals a strong demand for housing and infrastructure, further driving up property values.
With its growing population and strategic location, Mukono is becoming a hub for development. The town's appeal is not just in its location but also in the opportunities it presents for investors looking to tap into a burgeoning market.
As Mukono continues to develop, its rising property values reflect the area's growing importance. The combination of infrastructure improvements and strategic positioning makes it a prime spot for investment.
Sources: Responsible Tourism Company, African Development Bank, Wikipedia, Kampala Price Forecasts, ICS Global
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) Mbale City is gaining interest with expanding business opportunities and improved infrastructure
Mbale City is buzzing with increased real estate activity thanks to its growing business scene and better infrastructure.
With new roads and upgraded public transport, Mbale has become more accessible, making it a hot spot for both residents and businesses. This ease of access is a game-changer, drawing in more people who want to live and work in the city.
Property prices in Mbale are on the rise, and they're expected to keep climbing. This is because there's a growing demand for homes and commercial spaces, fueled by the city's expanding business opportunities. The government is also playing a big role by promoting business development, which is attracting more investors.
There's a noticeable uptick in business registrations, showing a surge in entrepreneurial spirit and economic activity. New business parks and commercial developments are popping up, turning Mbale into a promising business hub and creating more job opportunities.
Media outlets are catching on, highlighting Mbale as an emerging business hub. This attention is drawing even more investors and businesses eager to expand in the region, further boosting the city's economic growth.
All these factors combined are making Mbale a prime location for real estate investment, with its potential for economic growth and development looking brighter than ever.
Sources: New Climate Economy, Price Forecasts, Knight Frank Africa Report
4) Fort Portal is gaining interest as a tourism city, boosting demand for hospitality properties
Fort Portal is now a hot spot for real estate investors, thanks to its new status as a tourism city.
With the government's plan to transform Fort Portal into a full-fledged tourism city by 2040, there's a noticeable increase in demand for hospitality properties. This plan is not just on paper; it's backed by serious government funding and a focus on infrastructure. The idea is to make Fort Portal a must-visit destination, which naturally draws more tourists and, in turn, more investors.
Back in the 2018/2019 financial year, Uganda welcomed over 1.5 million international tourists, and many of them headed straight to Western Uganda, where Fort Portal is nestled. This influx has been a game-changer for the local tourism sector. The government isn't just sitting back; they're actively investing in new tourist attractions and facilities, which is a big draw for real estate investors eyeing the hospitality market.
In 2023, Fort Portal saw the launch of the DataCities project, which is all about creating smart data systems for Uganda's new cities. This initiative is crucial because it helps manage the growing number of tourists and enhances their experience, making Fort Portal even more appealing to investors. The local government is also rolling out the red carpet for tourism investors with infrastructure and financial incentives, making it a breeze to set up shop here.
These incentives are not just for show; they make Fort Portal a prime location for real estate investments in the hospitality sector. The combination of government support and a booming tourism industry is a win-win for investors. Fort Portal's transformation is attracting both local and international investors, eager to tap into the growing market.
With all these developments, it's no wonder that Fort Portal is becoming a real estate hotspot. The city's strategic location and government-backed initiatives are creating a perfect storm for investment opportunities. Investors are keen to capitalize on the city's potential, and the demand for hospitality properties is only set to rise.
Sources: Kubwa Five Safaris, FPC Walkers, ToroDev, Kitara RCC
5) Wakiso District is gaining interest for its proximity to Kampala and large plots available for development
Wakiso District is becoming a hot spot for real estate, thanks to its close proximity to Kampala, Uganda's lively capital.
Living in Wakiso offers the perks of being near a major city without the hustle and bustle of Kampala. This makes it an attractive option for those looking to escape the city's congestion and high costs. Areas like Kira, Namugongo, and Gayaza are seeing a surge in popularity for both residential and commercial investments.
The availability of large plots of land in Wakiso is a major draw for developers. These plots are perfect for building new homes or commercial spaces, fueling the district's real estate boom. The region's growth is evident in the numerous construction projects popping up.
Infrastructure improvements are also playing a big role in Wakiso's appeal. The government, with help from the World Bank and other partners, is enhancing road networks and connectivity. This makes commuting to Kampala for work or leisure much easier, adding to Wakiso's charm.
For those considering a move, Wakiso offers a blend of urban convenience and suburban tranquility. The district's development is not just about new buildings; it's about creating a community that balances city life with a more relaxed environment.
As Wakiso continues to grow, it remains a promising area for real estate investment. The combination of location, land availability, and improved infrastructure makes it a compelling choice for potential buyers.
Sources: Credo Management, KCCA News
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6) Arua City is booming as a trade hub near South Sudan and DRC borders, driving real estate growth
Arua City is buzzing with real estate activity thanks to its prime spot near South Sudan and the Democratic Republic of Congo.
Being a stone's throw from these borders, Arua has turned into a bustling trade hub. Businesses are flocking to the city, setting up shop and driving up commercial activity. This influx is making Arua a hot spot for real estate investors looking to capitalize on the boom.
Back in 2023 and 2024, business registrations in Arua City shot up, a trend that's expected to keep climbing as cross-border trade flourishes. The government's push to improve infrastructure is also a game-changer, enhancing connectivity and making the area even more appealing for investment.
Uganda's real estate market is on an upward trajectory, with property prices predicted to rise by 5% to 10% in 2025. Arua City is riding this wave, fueled by urbanization and a burgeoning middle class. The demand for modern properties is surging, catering to both locals and cross-border traders.
In Arua, new construction projects are popping up to meet this growing demand. The city's strategic location and economic potential are drawing attention from investors eager to tap into the thriving market.
7) Mbarara City is rising as a real estate hub with its commercial center status in Western Uganda
Mbarara City is becoming a hot spot for real estate, thanks to its role as a commercial hub in Western Uganda.
In recent years, property values in Mbarara have soared, driven by urban development and economic growth. This makes it a prime location for investment. The city is buzzing with new commercial investments, boasting over 20 shopping malls and arcades like Amazon, Easy View, and London Arcade. This boom in commercial properties highlights the city's growing appeal as a real estate hub.
Major infrastructure projects are also playing a big role. The completion of the Shs21b Mbarara Central Market and the expansion of the road network have significantly improved connectivity and accessibility. These developments enhance the city's commercial status, making it even more attractive for businesses and investors.
Population growth is another key factor. The city's population has jumped from 195,013 in 2014 to 325,075 in 2024. This surge in residents fuels the demand for both residential and commercial properties, as more people flock to the city for opportunities. New shopping malls and business centers are popping up, drawing in businesses and residents alike.
With more people moving to Mbarara, the demand for housing and commercial spaces is on the rise. The city's thriving commercial sector is a magnet for businesses, further boosting its real estate market. The combination of population growth and infrastructure development is creating a vibrant environment for real estate investment.
For anyone considering buying property in the country, Mbarara City offers a promising opportunity. Its status as a commercial center, coupled with ongoing development, makes it a compelling choice for investors looking to tap into Uganda's growing real estate market.
Sources: Amity Uganda, Daily Monitor, Amity Uganda
8) Jinja City is gaining interest for its industrial growth and infrastructure development
Jinja City is quickly becoming a hot spot for real estate investment due to its booming industrial growth and infrastructure development.
In recent years, Jinja has seen a wave of new businesses and factories setting up shop, signaling a surge in industrial investments. This trend is expected to continue, which means increased demand for both commercial and residential spaces. The government is actively promoting this industrial growth through various initiatives, making Jinja even more attractive to investors.
One of the major projects boosting Jinja's appeal is the construction of the Kampala-Jinja Expressway. This massive infrastructure project aims to improve transportation links between Jinja and major cities like Kampala. With over 60 bridges and major interchanges planned, the expressway will significantly enhance Jinja's connectivity and accessibility.
Infrastructure improvements in Jinja aren't just limited to roads. The city is also seeing upgrades in utilities like water and electricity supply, making it a more attractive option for both residential and commercial investments. While property prices in Jinja are rising, they are still more affordable than in Kampala, offering a great opportunity for real estate investors.
The real estate market in Uganda is projected to grow significantly, and Jinja is poised to be a key beneficiary of this growth. Thanks to its industrial and infrastructure developments, Jinja is becoming a prime location for those looking to invest in property. The city's transformation is not just about new buildings; it's about creating a vibrant community where businesses and residents can thrive.
For those considering investing in Jinja, now might be the perfect time to get in on the action. With the government's continued support and the ongoing infrastructure projects, Jinja's real estate market is set to flourish. The combination of industrial growth and improved infrastructure makes Jinja a compelling choice for property investment.
Sources: Numbeo, ICS Global, Statista
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) Entebbe is gaining interest for its scenic views and booming tourism, driving property appreciation
Entebbe is a hot spot in Uganda, thanks to its stunning scenic views and booming tourism industry.
In 2023, Uganda welcomed 1.3 million international tourists, many of whom arrived via Entebbe due to its convenient location near the international airport. This influx has naturally sparked more interest in the area, making it a prime location for property investment.
The modernization of Entebbe International Airport and the development of new airstrips have made travel smoother, drawing in more tourists and investors. This has led to increased investments in the hospitality sector, which boosts the local economy and property values. The trend of rising property prices in Uganda is expected to continue, driven by economic growth and urbanization.
Looking ahead to 2024, the tourism industry in Uganda is projected to grow, with international tourist arrivals expected to reach 1.5 million. This growth is supported by significant infrastructure investments, such as road improvements, making remote tourist destinations more accessible. The government has also earmarked funds for Entebbe's development, including a Shs96.62 billion urban development master plan to enhance infrastructure.
By 2025, property prices in Uganda are expected to rise further, with areas like Entebbe seeing increased demand for vacation homes due to its scenic views and proximity to attractions like the Uganda Wildlife Education Centre. The expansion of leisure facilities will also enhance Entebbe's appeal, contributing to rising property values and rental yields.
Sources: APTA, Observer, Monitor, Price Forecasts, Business Times UG
10) Masaka City is gaining interest for its growing commercial activities and improved road networks
Masaka City is quickly becoming a prime spot for real estate investment due to its booming commercial activities and improved road networks.
In recent years, Masaka has seen a surge in new businesses, with shopping malls and retail centers expanding rapidly. This growth is fueled by a rising middle-class population and changing consumer habits, making the city a magnet for investors.
The government has been instrumental in this transformation, pouring resources into infrastructure projects. The expansion of road networks has greatly enhanced connectivity, linking Masaka to major cities like Kampala, which in turn has attracted more businesses and real estate investors.
Uganda's real estate market, including Masaka, is on an upward trajectory. Property values have been climbing, with housing prices increasing by 11.5% over the past five years. This trend suggests a promising environment for real estate investment.
Looking ahead, the market is expected to grow by 7.07% from 2024 to 2029, indicating continued opportunities for investors. The improved infrastructure and commercial growth make Masaka a compelling choice for those looking to invest in property.
Sources: Knight Frank Africa Report, Statista Market Forecast, The Africanvestor Blog
11) Gulu City is gaining interest for its post-conflict reconstruction and urban development potential
Gulu City is quickly becoming a hotspot for real estate investment due to post-conflict reconstruction and urban development.
One major driver of this transformation is the increased government investment in infrastructure. Since the end of the conflict, the city has seen significant improvements in roads, public transportation, and utilities, making it more accessible and livable. These enhancements are crucial for real estate growth, as they attract both residents and businesses looking for modern amenities.
Property values and rental yields in Gulu City are on the rise, signaling its potential as a real estate market. The city is urbanizing rapidly, with a growing demand for housing and commercial spaces. This demand is largely driven by an increasing population and the emergence of a middle class eager for modern and luxurious properties. As a result, more investors are being drawn to the market, seeing the potential for profitable returns.
Gulu City's population is booming, thanks to high fertility rates and rural-urban migration. This growth is a clear indicator of urbanization, which supports the expansion of the real estate market. The city's urban extent has expanded significantly, reflecting the need for more housing and commercial developments to accommodate the influx of new residents.
Post-conflict reconstruction has also spurred increased business and commercial activity in Gulu City. The city is evolving into an economic hub for Northern Uganda, with sectors like agro-processing, tourism, and retail trade experiencing significant growth. This economic activity is attracting real estate developers and investors, further boosting the market.
Sources: Statista, SCIRP, World Bank, Digital Earth Africa
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.