Why Uganda’s land along major roads post the fastest land prices surge in ten years?
Despite several investment options available in Uganda for someone to splash in and make more profits, the land surpasses as almost everyone is eager and working hard to own a plot of Land especially in Mbarara City mostly along the major roads.
According to Herbert Tushabe, one of the Directors, Amity Realtors Ltd, who doubles as the head of field Operations at Amity Realtors Ltd located at Kyosiga House, Makhanisigh Street, Mbarara City “With a continuous expanding population and ongoing infrastructure developments across the country Uganda,Case in point, here in Mbarara City along the its major roads like Mbarara Masaka, Mbarara-Kabale, Mbarara-Ibanda, Mbarara-Isingiro roads, the demand for land remains consistently high resulting in higher price points”.
Mbarara City attained City Status on July 1, 2020 alongside other towns like Fort portal, Mbale, Arua, Hoima, Masaka and Lira.
According to Robert Mugabe Kakyebezi, the Mbarara City Mayor, Mbarara is the second largest city of Uganda after Kampala, the Capital City and the economic hub of Western Uganda and southwestern region. It attracts people from across the country and the other neighboring countries like Rwanda, Tanzania Congo due to its strategic Location, job opportunities, education and health centers/Institutions, climate and vibrant cultural heritage.
However, Jomo Mugabe, the Mbarara South Division, Mbarara City Mayor, indicated that the Mbarara City’s Population tripled after Elevation to City status in the last four years, since 2020.
The higher Population in Mbarara city, according to the land experts and dealers, “Means more competition for housing especially in desirable areas. Our Ankole culture also boasts house ownership as a success. So, there is always demand fueled due to that. Mbarara city is one of the cities across the country that has a maximum population in the working age which means more competition to buy houses. So, the smaller parcels of land are often more readily available, and their scarcity drives up their value.”
A section of Local leaders and land dears across the city, also agreed that Land is becoming scarcer over the time and becoming more expensive. Land is always in demand because it gives higher returns at low risk than other investments like Industrialization, Hardware among others, The land is limited but the population increases day by day so the demand for land and cost increases too.
According to the data obtained from Amity Realtors ltd, the leading company that deals in selling, buying and managing land in Mbarara City and outside, a plot located in a distance of 5 to 10 kilometers from the city Centre has doubled. Besides, its availability is very hard.
In year 2020, according to the Data, a plot of land in a distance of 0-5kilometres along Kampala-Mbarara Road measuring 100*50Ft that used to go for Ugx 2.5-4M, by 2020 at was at Ugx 20 million but now costs between 25 to 30 million shillings. Whereas land in places about 15-20 kilometers from the city Centre that used to cost Uganda Ugx 500k by 2000, now costs Shillings 6m as Indicated in the table blow;
Table 1 shows Plots how Plots along Kampala-Mbarara Road varies since 2000
Table 1 : Kampala Road
Tabel 2: Isingiro Road.
Table 3: Kabale Road
Table 4: Bushenyi Road
According to Amity Realtors, the location of a piece of land is a primary determinant of its price. Smaller plots of land in prime or well-developed areas within Mbarara and across the country tend to be more expensive because they offer easy access to essential amenities, transportation networks, and a better quality of life. These locations are often closer to business districts, schools, hospitals, and shopping centers, making them highly desirable.
In Conclusion, the real estate market in Mbarara and Kampala at large is a dynamic and complex landscape where the cost of land varies considerably based on numerous factors.