The 2024 National Population and Housing Census preliminary results indicate that the country’s population is now 45.9 million up from 34.6 million where it was at the 2014 census. But this demographic trend also reflects a true representation in its administrative units of which Mbarara City is among for example Mbarara City population is now 325075 up from 195013 in 2014.
In the dynamic world of real estate the relationship between population and property market is undeniable, it is two-sided because as the population increases the demand for housing and real estate services.
As more people move to cities in search of jobs and better living conditions the demand for housing in urban areas increases thus pushing up the demand for property prices. But also this significantly impacts on urban planning, and economic development.
A growing population translates into an increased demand for housing, creating a ripple effect across the property market because as more people seek homes, the demand for both residential and investment properties rise, influencing property values and market dynamics. Increased demand often translates into higher property prices and potentially quick sales but also buyers may face intensified competition and rising property prices in areas experiencing population growth.
It’s therefore important to understand the interplay between demographic trends and property market by real estate players so as to navigate the opportunities and gaps that comes with the increasing population viz vee the land markets.
But also to note is that combination of high level ownership, different access to mortgage, high mortgage seems to make it difficult for young people to get better housing affordable yet it is the biggest population now moving to cities for job and better living conditions but also for independence. This means that these youth need affordable quality housing and attractive dwellings.
Another interesting point to note is that population growth is one of the primary causes of land scarcity because as the population increases the demand for land also increases leading to its shortage and this coupled with urbanisation as people move from rural areas for jobs and better living conditions the demand for land in cities also increases.
But also remember that land is a fixed resource and supply is limited which means the demand for it often exceeds its supply. This besides driving its cost high it means real estate players, government and other stakeholders have to join efforts in seeing there are modules and innovations to cater for this growing population.
Land scarcity is a significant issue in the real estate market. As the population grows, the demand for land increases and the available property becomes scarce and this has a considerable impact on the real estate market.
Mr Herbert Tushabe, the director Amity Realtors Mbarara City said to address the problem of land scarcity amidst growing population policy makers, public actors, developers, real estate specialists need to come up with a holistic approach that considers the needs of the people, environment and the economy.
He said land scarcity in cities if not given attention will result in numerous challenges including environmental concerns because developers will build in areas not suitable for construction like wetlands resulting in natural disasters.
Mr Tushabe noted another challenge would be infrastructural challenges because it will be difficult to build roads and other public infrastructure before adding that there will be limited availability of properties because people will find suitable properties which will affect transformation on Mbarara City.
“The real estate boom in Mbarara and surrounding areas is already booming but will there be available land to meet. This calls for the need to start early in planning for this growing population amidst land scarcity, to use land very effectively,” he noted.