Experts predict better performance for Uganda’s real estate sector after reopening of night economy
Experts have said Uganda’s real estate industry that exhibited some resilience during the first six months of 2021 will continue to perform better after the reopening of the night economy.
The night economy was on Monday allowed to reopen fully after being closed for over two years after the outbreak of the Covid pandemic.
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On the other side, the retail sector had dropped by 12% due to the lockdown measures like the lockdown.
Speaking on Monday during the release of the Kampala market performance review for the second half of 2021, experts said all indicators show that a better performance of the sector, especially the retail industry.
“The lockdown and its effects like the curfew have had a big impact on the retail industry in Uganda. The general consumer behaviour is very different from the surround markets. In reality it is very different and has been independent on the restrictions imposed in Uganda,” said Marc Du Toit, the head of retail agency and management at Knight Frank Uganda.
“Uganda is a much-later trading consumer because the safety and security we enjoy here compared to the likes of Kenya, Tanzania, South Africa etc. The retail trades in the evenings into the night. Even in the arcades downtown, 8 and 9am there is no activity but starts at 11am and goes to 8pm or 9pm. So the curfew has had a big impact on retail without a doubt.”
Du Toit explained that after the imposition of the curfew, there was depressed spending because of the consumer behaviour which he said is not easy to change.
“It takes a generation to change consumer behaviour and the reopening of the economy is something we have prayed about for the last 18 months.”
Demand improves
According to experts in real estate sector, demand for office occupancy has improved steadily in the second half of the year 2021 after the easing in the lockdown, growing by 4%.
This state of affairs has in return led to a shortage of prime space for immediate occupancy.
According to Knight Frank, this increase in demand is attributed to the return by expatriates into the country and demand for more office space by oil affiliated companies including those directly involved in oil and insurance firms.
However, Judy Rugasira Kyanda, the Managing Director Knight Frank Uganda said this increased demand for office space is speculative and no definite number can be put to it.
“We have been very cautious on putting numbers to this demand because projections have not come to pass in real time but have been postponed, extended or rescheduled in the future ,” Rugasira said.
