Real Estate players have tasked Uganda government to improve infrastructures along urban areas to spur growth of real estates industry.
Speaking at this years Homes and Gardens exhibition at Sheraton Hotel, Chairman of Olim Group and organiser of Homes and Gardens exhibition Edwin Musiime said although Uganda’s real estates industry is on trajectory most infrastructures leading go housing projects are in sorry state.
He also decried Uganda’s housing deficit despite high demand for housing population.
According to Musiime the housing deficit stands at 2.4 million housing units, of which nearly 1.4 million are in rural areas.
“Currently, the country requires an estimated 2.4 million housing units, with an annual demand of around 200,000 units.
However, only a fraction of this demand is being met, leading to overcrowded urban areas and a proliferation of informal settlements,” Musiime said.
Lands and Housing Minister Persis Namuganza asked real estates players to adopt to new sustainable housing solutions such as green housing using green building materials and other sustainable innovations in abid to address climate change challenges.
She pledged to support the private sector in addressing housing deficit and putting in place real estates policy to regulate the sector.
According to Namuganza the deficit is most pronounced in urban areas, where the cost of land and construction materials is prohibitively high for many.
This has resulted in a high prevalence of informal settlements, with poor living conditions, lack of basic services, and vulnerability to environmental hazards.
“The Ugandan government has acknowledged the housing crisis and is implementing various strategies to address it.
” The government is fostering partnerships with private developers to increase the supply of affordable housing.
By providing incentives such as tax breaks and access to land, these partnerships aim to attract investment into the housing sector,” she added.
Namuganza also said that government is working on policies to make land more accessible and affordable for housing development.
On Infrastructure Development, the Minister said Investing in infrastructure such as roads, water, and electricity in undeveloped areas is crucial.
“By improving these areas, the government hopes to encourage housing development outside the congested urban centres,” Namuganza explained.
According to ministry of lands and hoysing Uganda’s real estates market is expected to reach a value of US$365.60billion by the year 2024.Among the different segments, Residential Real Estate dominates the market with a projected market volume of US$329.20bn in 2024. This segment is expected to grow at an annual rate of 7.07% from 2024 to 2029 resulting in a market volume of US$514.40billion by the year 2029.
In a global comparison, United States is expected to generate the highest value in the Real Estate market, with an estimated value of US$132.0trillion in 2024.
