Neighbourhoods freshly ripe for real estate investment this year 

The property industry is one of the surest investment areas in Uganda because of three factors. Firstly, land always appreciates in value, secondly, our population is growing exponentially coupled with the fact that 75 percent of Uganda’s population is under the age of 30, and thirdly, because of the rapid urbanisation that is currently ongoing.

For these reasons, land is a prized commodity across Uganda and more so around the capital, Kampala. The greater Kampala Metropolitan Area (GKMA) has seen a property boom for more than two decades now. Many suburbs surrounding Kampala have become so developed over the last two decades that property in those areas have become too expensive for the common person. Only a handful of investors can afford to buy land, leave alone property, in suburbs like Muyenga, Luzira, Lubaga, Lubowa, Ntinda, Naalya, Najeera, etc.

The good news is that there is always a suburb further into the country, less than one and a half hour’s drive from the city center where land prices are still in the range of most people’s incomes. These places, while they are not faraway villages, are usually off most investors' radars because of terrible mud roads.

 The moment a good road is built, investors flood in. But sometimes it is because land in the village across the swamp has become too expensive. And the avalanche continues flowing farther and farther away from the city.

The list below includes neighborhoods as close to the city as 10 kilometers away, and as far as 40 kilometers away. This means that no matter the price you are willing to pay, you should be covered.

Kampala-Entebbe Expressway

The new Kampala-Entebbe Expressway stretches all the way from Munyonyo and Busega, through Kajjansi on it’s way to Entebbe. Most of the villages along this road are only slowly getting the attention of property investors, hoping to cash in on properties that boast of quick airport accessibility. Land around Kigo and Kajjansi along this highway is currently the priciest according to property brokers. The price of acre here ranges from Shs800 million to Shs1 billion.

Annet Babigamba, a property expert dealing in affordable condominium apartments says Kigo and Kajjansi are currently on the radar of many high-end property investors.

She notes, “This place still has undeveloped land in plenty. That means developers have a chance to make modern estates here, which won’t be hard to sell because it is less than 10 kilometers from the city center and less than 15 minutes to the airport.’’ Mawule Mawule is off the Kasangati-Matugga road.

The road is currently under construction. It is an upgrade from murram to tarmac. This means that overnight, plots along the road have become gold.

“While an acre on the main road, if you can find one, goes for Shs1 billion, and a 100m by 100m plot goes for Shs400 million, in Mawule, which is only two kilometers off the Kasangati-Matugga road, the price of an acre ranges from Shs180 million to Shs200 million, says Peter Muyanja, a property broker in the area. You can also get a standard 50m by 100m plot at Shs20 million in nearby Nalusugga, less than 15 kilometers from the city center. Nsassa – Kira Two factors have put Nsassa on the map for investors this year; it lies between two highly developed suburbs of Namugongo and Kira, and the main road through this village is currently under construction. The vast majority of Kampala’s working class still gravitate towards the North-Eastern parts of GKMP, so investing in Nsasa and the surrounding areas is always a win. An acre ranges from Shs600-Shs700 million and a Shs50m by 100m standard plot goes for Shs90 million. Namanve Located 11 kilometers east of Kampala City, Namanve industrial and Business Park has a potential for investment, both commercial and residential according to Babigamba. There are about 52 fully operational factories, directly employing 16,000 Ugandans. Annet explains that, The area is along Jinja road and is highly industrialized. This means that the hundreds of employees for these factories will put demand on both commercial and residential properties.’’

Nakawuka - Entebbe Property investments have tended to go exclusively North-West of Kampala over the last two decades, leaving villages in the south of Kampala virgin.

But this is starting to change, and this year may see many property investors go southward. Nakawuka, Sissa, Kasangye and surrounding areas will be new property investment attractions this year. An acre in these areas cost between Shs50 and Shs350 million depending on variables like location on the hill, proximity to the main road and direction towards the lake. Standard plots go for as low as Shs15 million in low lands to Shs35 million in hilly areas. What makes these areas ripe for investment is the Nateete-Nakawuka road that is planned for upgrade.

EVEN CHEAPER
The further away from the city you go, you should be able to find plots for as little as 7 million and an acre as little as Shs20 million. Those numbers even go much lower if you go 50 kilometers out. For instance, getting out Wakiso and into districts like Mpigi, Nakaseke, Kayunga and such other places means that you get good land deals, according to industry experts.

In some of these areas, an acre can even go lower than Shs5 million. While such areas are perfect for country homes and farms, if push comes to shove, one could commute to and from town while living there.