Mbarara City’s top upcoming residential neighbourhoods


What you need to know:

  • Mbarara is one of the cities currently undergoing a lot of transformation as neighbourhoods are rebuilt to support new economic activities and provide accommodation for the growing population with higher incomes and discerning tastes. 

Mbarara City is one of the fastest growing and developing cities in the country. Almost three years since being elevated to city status in 2020, a number of new residential estates are coming up to accommodate the ever-growing population. 

Originally Mbarara had three divisions; Nyamitanga, Kamukuzi and Kakoba but after being elevated to city status its boundaries were expanded to include other areas of Nyakayojo, Biharwe and Kakiika. 

The real estate industry has picked beyond the central business district to the peri-urban, where high and medium income residential properties are being constructed. We bring you several upcoming residential neighbourhoods in Mbarara City that can guide you to build a home or buy one.  


About eight years after the construction of the Mbarara-Bypass, the area has been transformed from isolated farms to highly a populated residential area. The bypass, constructed to decongest the central business district is a 14 kilometre stretch starting from the Coca -Cola plant in Makenke, Kakiika, Mbarara North Division and continues northwards to Rwebishuri, Nkokonjeru then crosses Mbarara –Bushenyi Road through Ruharo, Ruti and then connects to Mbarara –Kabale Road.

It has become one of the most sought-after residential areas in the city with property developers moving in and setting up estates and high rise buildings. 

Residential houses in Kakoba  suburb in Mbarara City. The area also offers many business opportunities to support the growing number of residents.

However, the area still has spacious land tracts subdivided into plots ready for buyers.  There are a number of businesses flourishing along the bypass too, including petrol stations and hotels. 

The estates are in close proximity to social services such as schools, health facilities and shopping centres since it is a five-minute drive from the city centre. A 50X100 plot here goes for between Shs30m and Shs50m. 

The security around this area is good especially with several government security agencies in residence including the second division Uganda People’s Defense Forces (UPDF) headquarters as well as two police posts in Ruharo and Nkokonjeru.


Located around 12 kilometres on Mbarara-Masaka Road from Mbarara City, Biharwe is one of the fastest growing satellite towns and has more upcoming residential estates. Its location on the highway has led to the steady growth. Its potential can be witnessed during the peak hours of the morning and in the evening as majority of people who work in the city commute to and from the area. 

Apart from the proximity, residents say the rent is affordable and the houses are still new.  Plots here remain relatively affordable with a 50X100 going for between Shs50 and Shs100m in Biharwe Town but can go for as low as Shs10 and Shs30m as you move further away from the tarmac road. Biharwe is also home to tourist attractions such as Igongo Cultural and Country Hotel, the Eclipse monument and Excel Hort Consult agro-tourism centre and Lake Mburo National Park. It provides a suitable investment for real estate development, given the availability of expansive tracts of land and high demand for housing. Some of the estates here include Nyabuhama, Rwenjeru, Kakoma and Kamatarisi.

Nyamitanga Hill

Located on one of the several hills overlooking the city, Nyamitanga is the perfect location that enables one to enjoy all the benefits of urban life as well as those of rural living. 

Separated from the city by River Rwizi, the neighbourhood has secure and affordable homes with excellent amenities. It has proximity to shopping places, hospitals such as Holy Innocents Children’s Hospital and home to some of the best schools in the city such as St Helens Primary School, Mary Hill High School, Shuadea Islamic School, Nyamitanga Vocational School and University of St Josephs.

It is served by excellent infrastructure with a tarmac road along Mbarara-Isingiro Road and other motorable roads from the central business on Katete Bridge. Some of the fast growing residential estates in Nyamitanga Hill include Nsiikye, Kyera, Katete, Karugangama and Kashenyi. The cost of a 50X 100 plot of land here is between Shs15m and Shs30m. 


The Koranorya -Kakoba estate can be accessed through Mbarara-Masaka Highway or through Buremba Road. This is a historically residential area but has now been opened up for new developments. It shares a boundary with Makenke UPDF barracks and Bishop Stuart University main campus. 

Here, a 50 X 100 plot of land costs between Shs15m and Shs30m.  Some of the estates here include Kakoba-Rwentondo, Kakoba-Muyenga, Kakoba-Rwemigina and Kakoba –Buremba.


Not long ago, Nyakayojo was considered one of the rural areas too undeveloped for property investment, but it has now become one of the fastest developing residential neighbourhoods in Mbarara City.  Located along Mbarara-Kabale Road, Nyakayojo used to belong to Mbarara District local government until it was annexed to Mbarara City. 

The area is strategically located on Mbarara –Kabale Road and is surrounded by the growing towns which include Rucece, Karama and a host of businesses coming up including petrol stations and hotels. 

The area also neigbours attractions such as Mirama Calvary Prayer Mountain that attracts hundreds of believers every first Friday of the month. This area has become a hub of activity  and real estate developers are now struggling to purchase land in Nyakayojo. Plots of land 50 by 100 here cost between Shs30m and Shs50m. 

Masha area

Although it is located on the edges of Mbarara City, Masha Sub County lies in Isingiro District. However its proximity to the city is enough to make many property developers ignore the fact that they are investing in another district.  Some of the estates here include Rubeho, Kihogo, Kashenyi and Kabale.