A new market survey report on the residential property price index for Greater Kampala Metropolitan (GKMA) has shown a spike in prices especially in the Central and Makindye Divisions.
The study that covered all the five divisions of Kampala and Wakiso District conducted by the Uganda Bureau of Statistics indicates that on the annual basis, the prices of properties in GKMA have been increasing since the second quarter of 2017/2018, growing at 12.6%.
This was also followed by 8.6% growth in the fourth quarter 2017/2018 compared to 3.2 % price increment in the third quarter of 2017/2018.
Presenting the report findings at the UBOS head offices in Kampala today, Sam Kaisiromwe the bureau principal statistician told the media that Makindye and Kampala Central divisions saw prices increasing due to the high demand for both rental houses and spaces for Business from the private sector and Government.
“Although prices went down in other divisions under survey, the report findings reveal that Kampala central and Makindye recovered fully in the fourth quarter of 2016/2017 and have generally continued to increase since the second Quarter in the financial year 2017/2018,” He said.
Shirley Kongai, the president of the Association of Real Estates Agents Uganda attributed the fluctuating prices on the struggling economy.
She said the real estate’s business is not doing well because of the less purchasing power from the public.
“Most of the clients are not willing to pay for costly rentals due to limited disposable income especially in the divisions of Nakawa, Kawempe,” she said.
“For the case of Makindye and Kampala central they have comparative advantages over other divisions; that is why the prices went up,” She said.
The rental property price index measures the change in price of residential dwelling over time.
Chris Mukiza, the Director Macro Economic statistics at UBOS noted that this survey is significant to policy makers, market analysts and researchers for range of economic and social reasons.
“The housing market plays an important role in the urban economy. Housing is a major source on individual wealth in the country. Thus changes in housing costs affects the disposable income of households thereby influencing consumer spending and saving decision.” He explained.