Mark Muhumuza

Real estate firms will once again converge at the annual Stanbic Home and Auto Show this week starting 20th - 21st March in Kampala.

The event attracts key players in the real estate market ranging from the real estate developers to real estate managers.  The 2008/2009 national budget figures indicate that construction and housing sector grew at about 13 % per annum, contributing 14% of the Gross Domestic Product.

Uganda has over 40 real estate firms including Kensington, Nationwide Properties, HL Investments and Pearl Estates among others and this industry continues grow as the demand for housing grows. Around Kampala people spend significant amount of their money on rent, yet they will never get to own the house. The rent paid around the city is significantly high and cases of defaulting have been high.

Property is wealth and owning a house means one has acquired an asset that can be theirs.

Sector experts have estimated that Kampala city has a backlog demand of over 50,000 home units and it increases by 30% units annually.

At least 25,000 units in Kampala will need to be replaced creating a housing shortfall of about 100,000 units in the city of about two million people.

With a 3% population growth rate per annum there will be a one million housing unit- deficit in Kampala alone unless the rate at which houses are coming on the market increases.

The home and auto show is used by the firms to showcase to the people their properties. It is also used as an opportunity by many of the firms to interact with potential clients. Mortgages are a phenomenon that some middle income Ugandans are yet to understand and it is at the home and auto show that people will get to learn about them.

Banks have been closely working with Real estate developers in order to provide mortgages to those who can afford the monthly mortgage.

In 2007 the International Finance Corporation (IFC) launched the Uganda Mortgage Finance Programme to encourage banks undertake home loan services.