Vertical Living: Why Ugandans have been slow to embrace the condominium buzz

Kampala’s real estate landscape is dotted with burgeoning outlines of condominium developments, promising a modern, amenity-rich lifestyle. 

Adverts flood social media feeds and billboards with a promise of “affordable” two-bedroom units from as low as UGX 240 million.

Yet, beneath the glossy marketing, a stark reality remains: Ugandans’ widespread adoption of condominium properties remains stubbornly low.

This begs the question: why aren’t these seemingly attractive housing options resonating as sound investments for the majority of the population?

The fundamental issue appears to be one of affordability, evidently highlighted by the average Ugandan monthly income scale that stands at around UGX 200,000, according to the 2021 National Labour Force Survey.

This is further emphasized by the Bank of Uganda Financial Capability 2022 report, which highlights that less than 1% of adult working Ugandans earn more than UGX1 million.   

Thus, the pricing of many condominium units places the largest part of the population firmly out of target, yet in the real sense, those who have the capacity would be reluctant to buy condominiums.

For instance, the lukewarm reception to the National Social Security Fund’s (NSSF) discounted offering at Solana Lifestyle and Residences, where units were priced at UGX 514 million ($139,000) at the end of 2024, underscores this point.

The vast majority of Ugandans met this price tag with disbelief and derision online.

But beyond this, is a cultural preference that has special attachment to land ownership.

Joseph Luswata, a real estate veteran of two decades, says Ugandans still appreciate the idea of acquiring land and developing it themselves.

Rarely, he says, “do they want to buy ready property.

“Also, the math between building your own home and buying a condo is unrealistic. It seems cheaper to build,” he adds.  

This belief reflects a desire for autonomy and the perceived long-term value associated with owning land.

Adding to the skepticism are concerns about the quality and delivery of condominium projects. 

Douglas Mukwaya, a Kampala-based real estate agent, points out significant challenges, including poor project delivery.

“What is promised in the off-plan rarely matches what is delivered. Like missing amenities, compromised living space, buyers are turning back to land ownership and constructing single-family homes, citing issues like poor structural integrity and low-quality finishes,” he says.

He also notes that such issues erode trust and make the often-substantial upfront cost feel risky.

Thus, Mukwaya points out that the current uptake is primarily driven by expatriates, the Indian community, foreign nationals, and professionals prioritising city proximity. 

His price estimates for unfurnished condos range between UGX 250 million and UGX 300 million for a one-bedroom and around UGX 500 million for a two-bedroom, which further illustrates the financial gulf for the average Ugandan.

Dr Akakunda Tumushabe shares a similar belief, saying that it is becoming increasingly difficult to afford a home, with condominium prices reaching near impossible levels.

“A considerable number of condominiums in certain areas appear to be as if they have been deserted,” he says.  

This observation of seemingly abandoned complexes raises questions about the long-term viability and management of these properties, further deterring potential local investors.

However, the story isn’t entirely gloomy.  

Esther Nampala of Skyward Realty offers a more optimistic outlook, arguing that “people have actually warmed up to condominiums and are purchasing them more now because they are a bit more affordable than buying a standalone house, and they are giving options of like shared communal space, also in terms of location, you could get a better location if you bought a condominium than when you decide to purchase land and build,” she says.

Nampala also underscores the growing potential of condominiums for investment, particularly in the short-term rental market via platforms such as Airbnb, Homestays, or Bed & Breakfast.

The availability and cost of financing also play a critical role. Mortgage interest rates in Uganda typically range from a hefty 16% to 18% per annum, making them a significant long-term financial burden.

While some institutions offer slightly lower rates, substantial down payments are often required, creating another barrier to entry for many Ugandans.

Despite the current challenges, the underlying fundamentals suggest that condominiums may have a more significant role to play in Uganda’s future. 

The country’s rapid population growth (3.5% annually) and the projected eight-million-unit housing gap in the next decade necessitate exploring land-saving housing solutions. 

The Condominium Property Act 2001 provides a legal framework for ownership and management, offering protection to unit owners.

However, the practical implementation and enforcement of quality standards remain a critical concern.

While current market dynamics indicate that condominiums are not yet widely considered the best investment option for the average Ugandan due to affordability constraints, cultural preferences, and concerns about quality and project delivery, the long-term outlook may shift. 

The increasing cost of land in urban centers, coupled with the pressing need for housing solutions for a rapidly growing population, suggests a potential future where well-built and reasonably priced condominiums become more attractive.

For this to happen, however, developers need to prioritise quality and transparency.

Financial institutions need to offer more accessible and affordable financing options, and perhaps most importantly, a gradual shift in cultural perception, highlighting the benefits of condominium living in specific urban contexts, needs to occur.

For now, the condo market in Uganda remains largely niche, catering to a specific segment of the population.

Whether it evolves into a mainstream investment for Ugandans hinges on addressing the fundamental issues of affordability, trust, and cultural alignment.