Increasing commodity prices and the real estate markets
Commodity prices countrywide have continued to rise at a fast rate since January, which has forced many Ugandans to adjust their budgets in an economy that is recovering from the devastating impact of the Covid-19 pandemic.
This means that apart from other demands, it now costs more to put food on the table and generally provide for a family. Consumers have to dig deeper into their pockets to buy some essential goods, whose prices are weighing on the economy’s economic recovery.
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How is this affecting the real estate sector?
Real estate sector like other sectors in the economy is not spared because the rising commodity prices indirectly affects them because the rise in essential goods directly affects their client’s ability to invest in the sector but also the supply chain disruptions especially in construction materials like cement.
However the current change in the economy should not be an excuse for you not to invest in real estate. Whereas to buy or to wait in investing in the real estate sector like buying land depends on individual decision and motivation, waiting to invest in real estate may not be an option.
This is simply because even if you push on buying that land or home a year or so later, there is no assurance of the economy improving. True, the rising commodity prices may scare away both buyers and sellers of properties because they don’t know when the economy is going to stabilize but the others are scrambling to invest in the real estate sector which could be a daring move.
While the real estate sector economics may be disrupted by the increasing commodity prices forcing investors in the real sector to make tough choices about their budget priorities and make adjustments to fit changing personal needs, land markets and property rates are expected to continue to grow.
So trying to time the market and make predictions about real estate markets or what may happen in the coming years may not be the best strategy for someone investing in real estate. Let your decision be based on your budget and priorities. For example, if you consider the future of your family as it grows and you are still renting a room, then you might decide to buy land and build your own home.
Owning a home and investment in the real sector is a sacrifice, so make choices and if your budget allows, buy that land and own a home now or set up any other economically viable real estate investment like commercial housing and rentals.
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Amity Realtors ltd we remain committed to advise you on the right real estate decision especially at this time when the economy seems to be causing worry and scare among many Ugandans. There are many factors that determine property acquisition in the real estate sector and if no credible advice is given, you find yourself making wrong choices.
But we can closely work with you to acquire land or property or sell it competitively. For example the change in the economy or your earnings can quickly alter your decisions but with a realtor expert advice, you can make a yielding decision. In real estate markets what matters greatly is your personal finances and choices but this should not be the economic stability because there are little chances of you determining the future about
