Why there’s a need for affordable housing in the Real Estate industry for both public and private sectors
The real estate industry does not only indicate the economic growth of an area but also the basic standard of living of its people. However, poor planning and challenges in the industry are currently leaving the lower and middle-income populations behind in terms of accessing affordable housing.
Important to note also, is that; owning a building or land remains important in one’s life journey. These remain the most valuable assets because over time their prices/value keeps increasing but also those who don’t own and have not invested in them will continue to incur a high cost of living that goes to rent. Interestingly, also is that, as the income of the middle class rises, the demand for housing is also increases. As development, cities keep shifting to the creation of suburbs and residential areas away from the Urban Centres.
The prevailing political environment and relative economic stability have influenced a considerable stable and constant growth of the real estate sector in the country and Mbarara City in particular. However the competition for land and the rising cost of construction materials have caused prices to shoot up, but there is also a shortage of properties targeted to the lower and middle incomes which translates into a housing crisis. Whereas there is the growth of the middle-income sector compounding their capacity to purchase and own properties, the market trends must ensure that affordable properties are being developed with financing options in place. The majority of city dwellers aspire to have their property instead of spending a significant amount of their monthly income on rising rent prices.
That’s why Purchasing and owning property remains a huge investment that requires savings of a lifetime, or financial support in form of housing loans that can help people make decisions earlier on in life .This will boost the industry as well as their wealth plus reducing the cost of rent or purchase of housing making it more affordable to the majority of Ugandans,,,, remember a house is not just a building or facility where one stays, but a place that shelters, protects and nurtures its occupants. Thus lack of real estate funding and partnerships however, keeps the majority population to be forced to live in slums or squatter settlements. These same people are forced to keep paying rent and leave as squatters the whole of their lives but are also highly susceptible victims of natural disasters and social disorders like crime, poor hygiene and sanitation. We cannot also rule out having a homeless population under such conditions.
What should be done;
To avert the housing crisis, the government needs to partner with real estate players to see if there is affordable housing, especially in cities. Mr Herbert Tushabe, the chief executive officer of Amity Realtors explains that ”most people buy land but developing it remains a problem for lack of capital. Affordable housing will be much more possible if the government partners with real estate players. People can buy land from us, then the government gives them cheap and affordable loans to construct these houses, this is the better way we can ensure affordable housing in cities,” explains Mr Tushabe. He adds that ”financing options with the growing, steady economy and urbanization remain key in growing the real estate sector and affordable housing. But partnerships may not come from the government but from its agencies and departments for example National Social Security Fund (NSSF). Since NSSF will be assured of savings from these people it can partner with real estate companies and build houses for its savers”. He goes ahead and explains that one of their strategies to develop the real estate industry and offer affordable housing is through partnerships. … //