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Inflation forces drop in prices of residential properties
Property prices have been affected by an increase in inflation, amid subdued demand. Photo | File
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Last week, Ubos indicated that property prices in Greater Kampala Metropolitan Area had declined by 12.4 percent from an increase of 10.5 percent registered in fourth quarter of the 2021/22 financial year
Prices of residential properties in Greater Kampala Metropolitan Area decreased in the first quarter of the 2022/23 financial year, according to Uganda Bureau of Statistics (Ubos).
While releasing findings for the first quarter of the Residential Property Price Index in Kampala at the weekend, Ubos indicated that property prices in Greater Kampala Metropolitan Area had declined by 12.4 percent from an increase of 10.5 percent registered in fourth quarter of the 2021/22 financial year.
The decline, Ubos noted, resulted from subdued demand, amid soaring inflation that has now hit double digits.
At the weekend, Ms Juliet Nakayenga, a senior statistician micro-economics at Ubos, noted that property price decreases were more pronounced in Kampala Central and Makindye. For instance, she said, during the quarter, property prices in Kampala Central and Makinde decreased by 28.2 percent from an increase of 12.7 percent in the 2021/22 fourth quarter.
During the period, she noted, property prices in Wakiso, Nakawa, Kawempe and Rubaga all registered declines compared to increases during the fourth quarter of the 2021/22 financial year.
In Wakiso, property prices declined by 4.2 percent compared to an increase of 14.4 percent in the 2021/22 fourth quarter, while in Nakawa rates dropped by 9.2 percent compared to an increase of 5.4 percent in the previous quarter.
In Kawempe, prices dropped by 0.3 percent compared to a 3 percent increase in the 2021/22 fourth quarter.
Ms Nakayenga, however, indicated that year-to-year quarterly, property prices in Greater Kampala Metropolitan Area in the 2022/23 financial year dropped by -1.3 percent compared to -1.5 percent in the 2021/22 fourth quarter.
This was mainly attributed to residential property inflation in Kawempe and Rubaga areas, which increased to 10.7 percent this financial year compared to 9.7 percent in the year ended June 2022.
In the Wakiso area, inflation stood at -7.9 percent in quarter one of the 2022/23 financial year compared to -11.4 percent in the previous financial year, while in Kampala Central and Makindye inflation decreased to -13.7 percent compared to 2.4 percent. In Nakawa inflation decreased to -12.7 percent.
