What will shape the future of real estate industry in western Uganda in 2023
Real estate industry like any other sector needs innovation to survive in the dynamic global markets, thus a need for a robust business strategy that will appeal to consumers. Whereas real estate markets remain key in ensuring affordable housing and homes in the country, there are some key things likely to shape the sector in the near future.
Like in the past, the sector has been facing funding challenges and that is not about to change. To spur and grow the real estate sector now, there is need for innovative ways in terms of having alternative modes of funding.
Mr Herbert Tushabe, the operations manager Amity Realtors said that while many people may want to invest in real estate, financing has been a problem.
“As real estate players we need to come up with financing models that are convenient and affordable to our clients. Financial institutions at times prefer mortgaging than giving a long-term loan which affects the sector’s growth,” explains Mr. Tushabe.
He adds that as Amity Realtors, they have come up with Amity-Umoja fund, a payment model that will help clients acquire land of any type through payment in installments up to a period of one year. This model is purposely meant to help the small income earners to achieve their goals of owning land.
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He also revealed a “Dondolo” land acquisition model that is also intended to enable clients to acquire land at affordable rates slightly below the market price. “There are situations where people sell their land/property for quick money due to economic challenges at relatively cheaper prices. They approach us and we put these properties on the market at the same prices. All these are part of our efforts to deliver affordable land,” he adds.
Another point that will define the real estate sector is embracing interconnectivity and real estate markets. Infrastructure connectivity remains key for clients to maximize social-economic benefits. Road infrastructure and connectivity to other social services real estate trends this year. Quality of life, health solutions, security measures are the major concerns which residential and commercial land buyers consider most while buying the property.
Demand of the properties is majorly seen where there is clear road access and transport facilities.
Digital shift: Whereas most buyers would prefer to tour the properties physically the digital shift cannot be ignored. This may be a new trend in the real estate sector in the region but virtual land tours and digital house hunting could be some of the new trends in the real estate sector. Digitalization in the real estate sector may not take away the physical land and property market transactions, they can both be used or any of those depending on the customer’s appeal.
Environment concern is another point that will define the real estate sector. You have heard of homes being swept away by floods and others being affected by sanitation challenges. So a good site location that will among others address the social environment needs of clients will be another reason
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Declining agricultural land vis –a- vi urban development; The sector is likely to see increasing agricultural land loss in rural areas and per-urban areas through conversion of this land to commercial, residential and industrial use. Most of the agricultural land has been subdivided to give way for urbanization. For example, in Mbarara city the per-urban land and rural agricultural land is already shrinking due increasing demand for land for residential, commercial structures etc.
Landlords and real estate agencies are already demarcating what used to be agricultural land into residential plots for sale with the increasing population and the demand for residential land hence reducing agricultural land.
Inflation as an independent factor still defines the real estate trend. As the economy struggles, disposable income goes down and discretionary spending reduces and the focus shifts to buying essentials. Inflation has affected the prices of construction materials like cement hence directly affecting the real estate sector.
Zoning regulations; Zoning is a planning control tool used in cities or municipalities to control and direct development of property. It does so by dividing urban land use into sections, permitting particular land uses on specific sites to shape the layout and directing development of cities and towns. This helps in urban planning.
Whereas zoning restricts rights of owners of land as they otherwise would like to use it but this facilitates planned development and a functional real estate market.
