A new report by Knight Frank Uganda shows that investors in apartments in the upscale suburbs of Kampala like Nakasero, Naguru, Mbuya and Kololo saw the best start of 2019 with a surge in demand from expatriates compared to last year, URN reports.
According to Knight Frank Uganda report for the first six months of 2019, occupancy rates for prime residential apartments increased from 69% recorded in the first half of 2018 to 78% in first of 2019.
Knight Frank Uganda is arguably Uganda’s leading property management and Consultancy Company.
The big increase was seen in the 2-bedroom apartments, with huge demand from the expatriate community.
Knight Frank says there was a notable surge in monthly rent for these apartments from USD 2,100 (Shs7.7m) in 2018 to USD 2,250 (Shs8.2m) in 2019.
This surge in demand is a vote of confidence in the economy, which grew 6.1% last financial year, showing that companies are hiring expats to push their operations.
Knight Frank had earlier reported Ugandans were moving away from upscale suburbs, seeking to live in a little far suburb like Najjera, Kyanja, Kiira, and Namugongo to reduce monthly rent.
It begs a question whether benefits of growth are trickling down to them.
Meanwhile, Knight Frank reports that rent for 3-bedroomed apartments declined by 5%. This is mainly attributed to supply outstripping demand for 3-bed units.
On the office space, the Kampala office market registered a 2% growth in occupancy from the first half of 2018 to the first half of 2019.
The increment was seen in grade B+ properties. Tenants are taking advantage of low demand at present to drive harder bargains for lower rentals, particularly for less prime properties.
REAL ESTATE: Occupancy In Kampala Upscale Suburbs Up
