Why it is so hard to own a house in Kampala

NBS Housing Baraza
Why it is so hard to own a house in Kampala
Caption not available

Owning a house is a dream for almost every citizen staying or working in Kampala. However, realising that dream has been difficult for many.

Below are the some of possible reasons why building or owning a house in Kampala is hard.

High cost of homeownership

To own a house in Kampala, you need to have stable sources of income. Most people in Kampala live  hand to mouth, their savings always low, and the only better option they may have is taking out a mortgage. However, high interest rates and many legal and technical requirements that must be met, such as spousal consent, attestation of mortgage, makes mortgage expensive and inacessible hence discouraging homeownership in Kampala.

The high cost of construction materials

The prices of building materials in Uganda may vary depending on the source, quality, and quantity of the materials. In most cases the materials required to construct a house such as steel and cement, are very expensive, making it hard for many to construct their dream homes.

Low saving culture

Many Ugandans survive on hand to mouth meaning most of their earnings are spent on basic needs. This makes it hard for them to save enough monies required to invest in housing, as the process requires one to be having stable sources of money.

Long process of acquiring land titles

To build a house in Kampala, you need to have a plot of land. However, the process of acquiring land in the city is long and complex. For example, for someone seeking to acquire a freehold land title, you have to fill and submit several application forms to the Land Board. You are also required to hire a professional registered surveyor to carry out a topographic survey of the land among other requirements. This complex process discourages potential homeowners in Kampala.

Low trust in banks

Like earlier highlighted, most of people living in Kampala survive on hand to mouth. For such people to be able to raise money required to build or buy a house, they may have to borrow from banks. However, many have lost trust in financial institutions due to fear of losing their money, high interest rates and poor customer service. This has discouraged homeownership in Uganda.

Worth noting is that a number of experts in housing finance will be giving tips on affordable housing during this year’s NBS Housing Baraza.

The baraza is to take place on December 8, and December 9, 2023 at Motiv, Old Portbell road.

The much-anticipated baraza will be aired live on NBS Television.

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