Land prices go up in Kampala suburbs

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Land prices go up in Kampala suburbs
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As the real estate sector in Uganda grows by leaps and bounds, experts say that purchasing of land in the suburbs of Kampala Metropolitan is now more rewarding due to the high appreciation in value for selected areas.

A report by Knight Frank shows that average land price per acre has increased by more than 10% between 2019 and 2023.

Even when these areas are within the range of 20 -30 kilometers from the city center, they would still carry with them more returns in the medium to long term .

The report shows that Gayaza where the Average price per acre was between shs220 and shs 300 million in 2019 increased to average price per acre is shs350 and shs500 million in 2023 an annual growth rate is 13%, Seeta, where the average price per acre was shs250  and shs330 million in 2019 increased to shs400 and shs 600 million per acre in 2023 implying an annual growth rate over 5 years is 12%.

Along Gayaza road Kiwenda, where the average price per acre was shs90 and 140 million in 2019 shot to shs150 and shs240 million in 2019 thus an annual growth rate of 16% over 5 years

Buwambo which had an average price per acre of shs80 and shs100 million in 2019 increased to between shs100 million and shs150 million in 2023 with an annual growth rate of 8% over 5 years while Mbalwa near Bweyogerere Bbuto where average price per acre was shs350 and shs500 million in 2019 , it increased to an average price per acre of shs600 and shs 800 million in 2023.

This shows an annual growth rate of 16% over 5 years.

According to Judy Rugasira Kyanda, the Managing Director Knight Frank, the increase in the annual growth rates show that land is the most valuable asset whose purchase now will bring more returns to the individuals .

"When you look at those sampled areas in the report, you realize that people who bought pieces of land were cheaper five years ago and purchasing land was easier then than it is now. in five years to come, those areas looked at as being far from town will be prime areas so the purchasing decision for land in areas far from town should be prioritized if one is to take advantage of the appreciation in value," she said.

The National Planning Authority (NPA) says that the complex land tenure system is one of the key drivers of the high land costs in the country, noting that the need to prioritize investment in affordable housing is no longer just an issue of human rights but a meaningful strategy for economic development.

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