Uganda's real estate industry has seen a significant boom over the last couple of years. This can be attributed to a number of facts. Everywhere you look especially around the suburbs of Kampala, houses are going up for residential and commercial purposes.
The construction industry has seen a significant boom in industries providing the needed materials with companies like Hima cement reaping hugely from the high demand for cement. Another industry that has seen a great demand for its products is Roofings Industry. However, there has been a significant rise of new industry players especially in the area of roofing where many Ugandans are opting for the cheaper and more nice looking iron-sheets that are a far cry from the old traditional silver iron sheets.
The iron sheets come in different colors to suit the different tastes and preferences of clients. This new and innovative way of roofing has given clay tiles manufacturers a run for their money. With more and more people opting for these iron sheets there has been an increase in the number of industries manufacturing them and one would be spoilt for choice.
It is however necessary that one does a proper market research before buying as some these sheets lose color and end up looking rather dull in a very short period of time.
Many real estate developers who were seeing huge profits from their properties are beginning to decry the low number of clients purchasing property lately. It is not uncommon to find property that was being sold at about 450m Uganda Shillings a year ago now going for between 250m - 300m.
When we contacted many of the real estate companies like www.ugandapropertyagents.com who are one of Uganda's leading Realtors, we found that the number of property inquiries and viewings have slightly dipped with fewer purchases.
A number of industry players are attributing this to the government crackdown on corruption. It is believed that much of the property bubble had been created by corrupt government officials who were not afraid to splash their ill gotten wealth.
Another reason being put forward is the global economic downturn. Some of the commercial properties were being purchased by International Organizations and business. However, the knock by the global economic recess has also impacted on the different multi-nationals.
When we spoke to Eric Senyonjo of Kampala Propertys.com he said business is still good although the trend on what type of property is being bought has also significantly changed. People are buying property which have more future returns unlike those that don't. He says property is being bought more for their invest value returns than earlier on.
