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Developers are expanding outside the Central Business District driven by growing opportunities for investors and homebuyers
Kampala, Uganda | THE INDEPENDENT | Turkish real estate firm VAAL Real Estate has officially commenced construction on its flagship project, Cadenza Residence, located in Nakasero, Kampala. The project, valued at US$30 million, is set to be completed by 2027 and will feature 24 floors, making it one of the tallest buildings in Uganda and comparable to similar developments in other countries.
The Cadenza Residence will include amenities such as a heated swimming pool, a state-of-the-art gym, a business center, a children’s play area, and separate steam and sauna facilities for males and females.
“Cadenza Residence will set new standards for luxury living, offering great amenities, cutting-edge design, and a unique living experience that reflects the aspirations of modern Ugandans,” said Islam Mohamed, CEO of VAAL Real Estate, at the groundbreaking ceremony on July 26.
“As we turn this vision into reality, we look forward to welcoming our future residents to a place they can proudly call home. Cadenza Residence will be more than just a luxury address; it will be a symbol of progress, innovation, and the bright future of Kampala.”
The launch prices for units are set competitively to attract early buyers: Starting prices are now US$89, 000 for studios, US$128,500 for 1 bed-room and US$266,000 for a two-bedroom.
Developers expanding outside CBD
This development in Uganda’s real estate sector comes at a time when the residential market is experiencing a sluggish performance. According to Knight Frank’s latest report, the first quarter of 2024 saw low sales and lettings volumes compared to the same period last year. The market has been strained, with housing supply outstripping demand, creating a buyers’ market.
“Even the few available buyers are hesitant to commit, thus prolonging the marketing period for the properties,” the report stated. It attributes the slow market performance to a liquidity squeeze, high-interest rates, and inflation affecting disposable incomes.
Prime areas such as Nakasero, Kololo, Naguru, Mbuya, and Bugolobi remain preferred by expatriates, while increased development activity has been observed in Ntinda, Muyenga, Mutungo, Kyambogo, and Lubowa. Developers are expanding prime residential accommodation areas outside the traditional Central Business District.
The report also notes improvements in semi-prime and secondary suburbs, leading to higher rental and sale prices, with some properties in Kyanja and Najjera seeing dollar-denominated markets.
Commuter towns on the outskirts of Kampala within a 30-km radius of the CBD such as Gayaza, Nsangi, Nabbingo, Matugga, Bulenga, Busiika, Kasangati, and Mukono are gaining traction, driven by growing opportunities for investors and homebuyers.
Minister for Kampala, Minsa Kabanda praised Vaal Real Estate for helping improve the city’s skyline.
“I believe that this development will create a vibrant dynamic space that will meet the needs of our people,” she said.
VAAL Real Estate’s development projects span various countries, including Turkey, the Middle East, Kenya, Ghana, Egypt, and the United Kingdom, in addition to Uganda.
