Property market in Uganda more stable- Knight Frank

Kampala, Uganda | THE INDEPENDENT | The property market in Uganda has not recovered to its past glory but it is more stable and less volatile than it was two years ago, according to a market update by Knight Frank Uganda, a real estate consultancy firm.

It adds that many of the factors which led to the slowdown of the sector leaving property investors exposed have been reigned in.

“For example, prime lending rates have reduced significantly, the shilling though still weak has remained stable, speculative development of commercial property has reduced significantly and rental levels are stabilising as office occupancy rates steadily increase,” it reads the update in part.

Knight Frank, however, cautions government on being quick to regulate the property market by offering knee jerk reactions to complex and structural issues like the dollar versus shilling rental regime.

Despite the upbeat projection, the consultancy says the landscape in Kampala faced a dramatic change in the second quarter of 2017 when Nakumatt stores closed, causing a dip in business and consumer confidence.