By Silvia Nyambura
Uganda’s property market has showed signs of recovery across sectors but still remains slow. Players in the sector however are still concerned over high bank lending rates which remain at between 18 and 22 percent. This is according to Knight Frank’s Quarter 3 & 4 2014 market update.
Speaking at a press conference held at the Kampala Serena Hotel today, company MD Judy Rugasira said office take up is showing signs of recovery on the back of falling rents. In addition, residential housing has seen a lot of activity as restrictions on bank credit ease. Demand for prime residential accommodation for apartments and town houses however reduced significantly in the said period.
The report indicates there has been a noticeable market correction in residential property prices while demand remained strong for redevelopment properties in this sub-sector.
“2014 registered steady demand for middle-income housing of between Ushs 250 million and Ushs 500 million either for owner occupation or investment purposes. The prices came down by between 15 and 20 percent and we believe this due to the process of demand and supply. It is basically a buyer’s market at the moment,