'Real estate financing is a key catalyst in reducing the housing deficit in Uganda'

Real estate experts have stressed the role played by financing in closing the housing deficit gap in Uganda.

They made the remarks in a virtual thought leadership engagement held yesterday

With the growing population currently standing at 42 million as per UBOS May 2020 statistics, there is continued need of addressing the issue of housing by putting in place practices that facilitate the growth of the housing sector in Uganda.

Edwin Musiime, the CEO Crest Group revealed that “Uganda’s housing situation is characterised by inadequate homes in terms of quality and quantity in both rural and urban areas, with a deficit of 2.4 million housing units, out of which 210,000 units are in urban areas and 1.395 million units in rural areas.”

According to statistics from Habitat for Humanity Uganda, Uganda’s population is projected to be about 48 million by 2022, which growth is expected to require more than 3 million more housing units.

Commenting on Centenary Bank's involvement in real estate financing, Abdul Kyanika, manager Housing and Salary Business at the bank said as a leading Microfinance bank in Uganda, they have developed products that address customer’s needs especially on the financing front.

“In line with real estate financing, our customers have access to land procurement, financing the construction process and improving their homes through our loan portfolio namely; Cente Land Loan, Cente Home Loan, Cente Home Improvement Loan, among others plus the Cente Mortgage Loan raging from Shs 300 million and beyond,” Kyanika said.

Muffaddal Yeolawala, the managing director, Universal Multipurpose Enterprise (UME) said they offer housing units ranging from a one bed room apartment to more than two.

He said this is intended to offer customers an array of options they can work with as they address the issues of housing deficit and land ownership.

"Currently we are putting up close to 1,000 units in different areas where UME properties are stationed, and through our partnership with Centenary Bank, individuals are able to own condominiums through the Cente Mortgage Loan hence addressing the land ownership issue," he said.

The housing deficit presents a lucrative avenue for developers in the real estate sector and other players like financial institutions to venture into addressing the increasing demand and need for affordable property in the country while creating the much needed impact for the “everyday person”.