Kampala. Property prices in Makindye and Kampala Central have increased, according to the Residential Property Price Index (RPPI) report.
According to the report authored by Uganda Bureau of Statistics (Ubos), the year ended December 2018 saw an increase in major properties in Kampala.
“Prices of properties in Kampala Central and Makindye areas increased to 6.4 per cent,” the report reads in part.
This was higher than the 2.6 per cent increase that had been registered in September.
Overall, the RPPI for Greater Kampala Metropolitan Area registered a growth of 7.1 per cent for the year ending September 2018/19 compared 1.6 per cent registered for the year ended December 2018/19.
The increase, Ubos found, was informed by an increase in residential properties in the Wakiso area to 16.1 per cent during the year ended December 2018 compared to 2.2 per cent registered for the year ended September.
However, the RPPI grew from -4.3 per cent during the first quarter of 2018/19 to 3.5 per cent during the second quarter 2018/19.
The quarterly rise was due to Kampala Central and Makindye quarterly inflation that increased to 10.8 per cent during the second quarter from -16.2 per cent registered during the first quarter of 2018/19.
Wakiso residential properties equally increased quarterly prices to 4.8 per cent during the second quarter of 2018/19 from -0.5 per cent in the first quarter 2018/19.
Similarly, Nakawa residential properties saw prices increase by 1.9 per cent in the quarter ended December compared to -8.5 per cent registered during the period.
However, residential property prices in Kawempe and Rubaga, massively declined to a combined -6.2 per cent during the second quarter compared to 9.1 per cent increase registered in the first quarter of 2018/19.
According to Ms Catherine Nanteza, the chief executive officer of Real Estate Agents Association of Uganda, the increase in price of Wakiso properties is due to shifting trends, explaining that there has been increased demand in the area.
“Most people are moving to Wakiso (Naalya, Namugongo, Sonde), Entebbe road, Munyonyo among others.
However, she attributed the drop in Rubaga and Kawempe, to poor accessibility, which has been brought up by traffic gridlocks in such areas.
“Location in real estate is key which means accessibility, neighbourhood and general developmental trends,” she said explaining that Kawempe, for instance, is riddled with endless traffic jam.
In addition, she said, Makindye has been marketed as a prime area for real estate compared to Kawempe that is seen as an industrial area.