Investors decry delayed approval of real estate Bill
Ms Judith Nabakooba with the real estate industry's developers after the first session of the 13th International Annual Real Estate Conference on Thursday. PHOTO | NOELINE NABUKENYA
What you need to know:
- The Bill's absence has discouraged international investors, dealing a significant blow to the country's economic development, according to Ms Shirley Kongai, president of the Association of Real Estate Agents Uganda
Uganda's real estate sector is eagerly awaiting the approval of a long-delayed Bill aimed at regulating and registering land brokers.
The Bill's absence has discouraged international investors, dealing a significant blow to the country's economic development, according to Ms Shirley Kongai, president of the Association of Real Estate Agents Uganda (AREA).
"We have been asking for this bill since 2008 when the association started. The delay has discouraged investments because for all the time we have attracted international players into the real estate space, they have always asked us to clean our space," Kongai emphasised.
The real estate bill, currently awaiting cabinet approval, aims to govern real estate practice, provide licenses to brokers, managers, agents, and salespersons, and regulate development projects and developers. Its approval is expected to streamline the sector, curb land grabbing, and address issues infiltrated by fraudsters.
Lands Minister Judith Nabakooba reassured investors that the government is working tirelessly to institute the law.
"Our real estate bill is going to get out of the way. I remember when I took it to the cabinet, we were guided on a number of things. After consultations and a number of benchmarks, we are confident that we are good to go back to cabinet," Ms Nabakooba said.
The minister also highlighted the need for innovative financing solutions in the real estate sector, which has been largely privately funded despite the use of mortgages.
"We shall work to see how the government can come in to work with you and improve on the sector. We want this sector to keep going and thriving," Ms Nabakooba added.
With Uganda's housing deficit standing at approximately 2.4 million units, according to the UN-Habitant 2020 report, the need for streamlined regulation and investment in the real estate sector has never been more pressing. As Kongai aptly put it, "You cannot develop without following certain rules and you cannot practice without being licensed."
The absence of the real estate bill has been cited as one of the impediments to investors bringing capital into the real estate sector. Kongai revealed that the lack of this law in Uganda has encouraged speculation because there are no standard charges. Additionally, the consumer does not trust the real estate broker since there is no law that can hold them accountable.
Mr Frank Oti, National Association Realtors (NAR) Global ambassador to Africa, noted that Africa suffers from a challenge of generation transfer of wealth, which only lies in real estate, because many people dealing in that business don't have licenses. "All real estate dealers must be educated and have a license to have trust in their clients because how can you teach someone something you don't know?" he asked, emphasizing the need for bringing a bill that will regulate real estate developers.
The 13th annual international real estate investment conference, themed "Exploring Real Estate Partnerships," was officiated by Lands Minister Judith Nabakooba and attracted investors from different countries across the world.
As the real estate sector in Uganda continues to grow, the need for effective regulation and investment has become increasingly important. The approval of the real estate bill is expected to be a major step forward in addressing these challenges and promoting the development of the sector.
