In a report by W Hospitality Group, the 123,846 rooms in the pipeline across 675 hotels and resorts, represents a year-on-year growth of 18.6%, or 12.2% on a same-store basis.

Marriott International leads with 31,782 rooms, followed by Hilton, Accor, IHG and Radisson Hotel Group. At 45,984, a third of planned rooms will be in Egypt across 185 properties. This is over four times the number in second-placed Morocco, which has 10,606 rooms. As of the beginning of 2026, Marriott International is the world’s largest hotel company, operating over 9,800 properties across 145 countries.

The report, 2026 Hotel Chain Development Pipelines in Africa, has been published in the run-up to the Future Hospitality Summit Africa to take place from  March 31 to April 1st in Nairobi.  This is Africa’s leading hospitality investment and leadership forum, bringing together senior executives, investors, developers and policymakers to drive sustainable growth and collaboration across the hospitality ecosystem.

According to the report, together, Egypt and Morocco account for more than 45% of total pipeline rooms. Egypt alone recorded 39 new deals last year and anticipates 33 openings in 2026, reinforcing its sustained development momentum.

Trevor Ward, Managing Director of W Hospitality Group said, “The data clearly show that Africa’s hotel development story is being driven by a handful of high-performing markets, with Egypt firmly at the forefront in both signings and projected openings.”

Beyond overall scale, the pipeline status data reveals that execution momentum is currently strongest in East Africa. Ethiopia and Kenya both have nearly 80 pc of their rooms under construction, closely followed by Tanzania at 77.5 pc.

This compares with significantly lower proportions of projects under construction in markets such as Nigeria and Cape Verde. While North Africa dominates in overall volume, East Africa is leading in terms of projects actively progressing toward completion and near-term delivery.

“What stands out this year is the strength of East Africa in terms of projects moving forward. Kenya, Ethiopia and Tanzania show some of the highest construction ratios on the continent, which suggests that this is where we are likely to see new supply coming through in the short to medium term,” Ward said.

Marriott International operates several properties in Uganda, primarily through its Protea Hotels brand, with a focus on the Kampala and Entebbe areas. Key properties include the Protea Hotel Kampala Skyz, Protea Hotel Naguru Skyz, Protea Hotel Entebbe, and the Four Points by Sheraton Kampala.

The Marriott Hotel and Executive Apartments in Kampala is expected to open before the end of this year and will feature 181 rooms and suites, executive apartments, a rooftop bar, a pool, a spa, and extensive event spaces.

The report states that although more than 65,000 rooms are forecast to open in 2026 and 2027, historical actualisation rates suggest delivery may fall short of projections, highlighting the ongoing gap between ambition and execution.

According to Forbes, building hotels in Africa is driven by a massive, largely untapped market with high demand for quality accommodation, a booming luxury tourism sector, and strong economic growth. Investors are also targeting the continent due to rising travel demand for eco-tourism and safari experiences, an expanding middle class and significant job creation opportunities.

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Jointly organized by the Uganda Society of Architects (USA) and the Uganda Parliamentary Forum on Creative Industries (UGAPAFOCI), the one-day dialogue was held under the theme “Sustainable Architecture and the Creative Economy: Driving Uganda’s GDP Growth through Design, Film, Music, Fashion, Digital Media and Cultural Heritage.”

Tradition Meets Modernity

Tunisian architect and keynote speaker Fida Sassi, urged African nations to draw inspiration from indigenous building practices. “Traditional African architecture is more energy efficient and sustainable than modern materials. By integrating indigenous materials such as stabilised earth bricks into contemporary design, we can build for Africa’s climate while cutting energy costs,” she said.

Indigenous building materials have better thermal properties, resulting in buildings that don’t require the elaborate heating and colling systems, typical of new age construction materials, resulting into a  lower carbon footprint, Sassi explained.

Her remarks resonated in Uganda, where concerns over energy use, environmental sustainability, and cultural identity are rising amidst rapid urbanisation.

Architecture as Identity and Heritage

According to James Wasula, Executive Director of UGAPAFOCI, architecture represents more than physical structures — it embodies culture, heritage, and national identity. “The most visited cities in the world – Paris and Rome – are known for their built heritage: the Eiffel Tower, the Colosseum. In Uganda, sites such as the Kasubi Tombs remain underutilised in national branding,” he noted.

Wasula cautioned that cultural expression in Uganda, and Africa more broadly, is too often misunderstood or dismissed as “witchcraft,” limiting the continent’s ability to harness heritage to inform modern practices in architecture and creative industries.

Architects Seek Their Place in the Economy

In her welcome remarks, Jacqueline Namayanja, President of the Uganda Society of Architects, emphasised the profession’s interconnectedness with other creative fields.

“We don’t work in a bubble. For galleries, theatres and production homes, we consult artists and filmmakers. For hospitals, we consult medical professionals. Architecture stretches everywhere,” Namayanja said.

She stressed that the symposium sought to identify both challenges and opportunities. “Ultimately, we are trying to find our place in the economy,” she added.

Namayanja further explained that the Uganda Society of Architects plays a key role in uniting professionals, lobbying for better policy, and ensuring capacity building across generations. Partnering with Parliament’s creative industries forum, she said, was vital in situating architecture within the broader creative economy agenda.

Linking Creativity to GDP Growth

The symposium underscored that architecture — alongside film, fashion, music, digital media, and cultural heritage — holds untapped potential for Uganda’s economy. By framing creative sectors as economic drivers rather than peripheral activities, organisers hope to influence policy, investment, and regulation.

Namayanja closed with a call to action: “We are a diverse gathering today, and opportunities fill the air. Take hold of them and go big.”

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Running under the theme “Sustainable Architecture and the Creative Economy: Driving Uganda’s GDP Growth Through Design, Film, Music, Fashion, Digital Media, and Cultural Heritage,” the event will convene architects, urban planners, musicians, filmmakers, designers, investors, and policymakers. The Speaker of Parliament, Anita Annet Among, will officiate as Guest of Honor, while Tunisian architect and urban designer Arch. Fida Sassi will deliver the keynote address.

The agenda includes a presentation on the Uganda Museum Project, panel discussions on sustainable cities and financing creative industries, and expert sessions on digital innovation, heritage conservation, and intellectual property rights. By weaving these conversations together, organisers hope to underline the economic and cultural dividends of collaboration between built environment professionals and creative entrepreneurs.

Arch. Jacquiline Namayanja, President of the Uganda Society of Architects, said the symposium is about breaking silos. “This is a platform for collaboration across disciplines—showcasing how architecture and the creative economy can work together to define Uganda’s identity, attract investment, and build a sustainable future,” she noted.

Racheal Magoola, Chairperson of UGAPAFOCI, echoed that sentiment, highlighting the creative sector’s growing weight in national development. “The creative industries are a vital engine for Uganda’s economy. From music and film to fashion, design, and digital media, they create jobs, drive innovation, and strengthen national identity. Integrating creativity into our agenda unlocks new pathways for tourism, investment, and sustainable growth,” she said.

Moiz Vajihi

Private-sector sponsors are also aligning with the message of innovation and synergy. Kansai Plascon, alongside glazing and aluminium firms Shibaam and Casements Africa, will showcase new technologies in building materials. “Besides being cheaper, glass has unique properties which confer environmental and aesthetic advantages in construction. We are seeing growing acceptance of glass in both large and small projects as the sector rebounds after Covid-19,” said Moiz Vajihi, a director at Shibaam.

Casements Africa’s General Manager, Pearl Kengaju, urged clients to respect professional guidance when applying new materials. “What you like might appeal strongly to you, but it is not always in your long-term interest. Respecting the advice of official vendors and manufacturers ensures durability and safety,” she advised.

To further cement this cross-sector approach, USA leaders Namayanja and Arch. Catherine Muyinda stressed the need for professional oversight at every phase of construction projects. They warned that bypassing architects and engineers risks costly mistakes and structural failures.

Pearl Kengaju

The symposium will also feature B2B networking and sponsor showcases, creating opportunities for collaboration between the private sector and creative practitioners. It is open to the public, with an attendance fee of UGX 250,000 payable through the Uganda Society of Architects.

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Under the agreement, Housing Finance Bank will provide tailored mortgage solutions designed to make financing more accessible, while Pearl Marina Estates will deliver quality housing units that meet modern standards of affordability and design.

Uganda faces a housing deficit estimated at 3 million units, a gap that continues to widen with rapid urbanisation and population growth. By joining forces, the two institutions say they are not only responding to this urgent need but also creating a model for sustainable and inclusive development.

“At Housing Finance Bank, our purpose is financing a sustainable future for all,” said Michael Mugabi, the bank’s managing director. “This collaboration aligns perfectly with that mission by bringing together financing and real estate development in a way that empowers more Ugandans to achieve their dream of homeownership.”

The MOU establishes a framework for innovation in housing finance, emphasizing customer-centric mortgage products, operational efficiency, and data-driven solutions. It also ensures that aspiring homeowners will be supported throughout the process—from identifying the right property to structuring affordable payment plans.

John Baptist Kaweesi, head of mortgages and consumer banking at HFB, described the partnership as both timely and transformative. “Uganda’s housing deficit presents a challenge, but also an exciting opportunity,” he said. “Through this collaboration, we can significantly reduce barriers to homeownership, making mortgages accessible to more Ugandans than ever before.”

Pearl Marina Estates, general manager Piyush Dixit noted that the MOU goes beyond a simple financial arrangement. “This is a bold step towards shaping the future of real estate in Uganda,” Dixit said. “By combining our strengths, we will accelerate growth, unlock synergies, and deliver meaningful impact to aspiring homeowners.”

Industry analysts have described the partnership as a milestone in Uganda’s housing finance landscape—one that could serve as a benchmark for public-private collaboration in addressing social and economic challenges. With both institutions pledging long-term commitment, the alliance is expected to not only expand access to affordable housing but also stimulate growth in Uganda’s construction and financial services sectors.

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The decision — passed by the UN Security Council on August 4 and announced Sunday by UN Chief of Security in Uganda, Rtn. George Bush Ochieng — follows years of lobbying and targeted infrastructure upgrades by Akright management and residents’ leadership. News of the designation was broken to residents  in a meeting at Ark Gardens, attended by UN representatives, Arkright City Residents Association (ACRA) leaders, Akright founders, security agencies, and local authorities.

The designation confirms that Akright meets key UN standards for secure, comfortable, and reliable accommodation for expatriate staff. Among the attributes that earned it the status are:

• A fully fledged police station within the estate
• Support from the Uganda People’s Defence Force (UPDF)
• Multiple emergency escape routes
• Proximity to the Entebbe Expressway and Entebbe International Airport
• Reliable utilities, water, and sanitation systems
• Controlled access points and a perimeter designed for security monitoring

The UN review team also highlighted the estate’s well-maintained road network, green spaces, and organised property management as contributing factors.

However, the assessment flagged areas for improvement, including tighter control of loitering by non-residents, completion of unfinished buildings, removal of overgrown vegetation, boosting fire-fighting capacity, and addressing noise and other risks from neighbouring unregulated areas.

Local police and UPDF officials pledged to step up deployments, set up additional boundary posts, and maintain a fire truck on standby. Residents were urged to install smoke detectors, keep fire extinguishers, and support neighbourhood security initiatives.

The UN status is expected to boost property values and spur investment in high-standard housing, international schools, medical facilities, and secure transport services for expatriates.

Arkright founder Anatoli Kamugisha

“This is one of the greatest achievements in the history of Akright City,” said Denis Kalyango, speaking on behalf of the ACRA leadership and security team. “The ball is now in our hands to tap the opportunities that come with it.”

Founded at the turn of the century by real estate visionary Anatoli Kamugisha, Arkright City represents one of the most successful private sector-led initiatives to promote affordable organised living and urbanisation in  Uganda. Working in conjucntion with DFCU Bank, Arkright enabled many working class Ugandans to own land and develop their homes in an organised urban setting.

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The trends unfolded against a backdrop of steady macroeconomic performance. Uganda’s economy expanded by 6.3pc in fiscal 2024/25, driven by strong services sector growth and improved trade. Headline inflation edged up to 3.9pc in June, while the shilling strengthened by 3.8pc year-on-year on steady forex inflows. The central bank maintained the policy rate at 9.75pc.

In the prime residential segment, occupancy rates dipped by one percentage point to 80pc, and average rents for two-bedroom units fell by 7pc. Knight Frank attributes the decline to new supply coming onstream at a time of shifting tenant profiles — with reduced demand from Western expatriates partly offset by increased leasing from Asian professionals.

Secondary suburbs bucked the trend, recording both higher occupancy and growth in short-stay listings, a reflection of affordability constraints and changing lifestyle choices.

Office Space Under Pressure

The office sector continued to face demand headwinds. Occupancy for Grade A offices dropped by 5pc, while Grade AB slipped by 2pc, as completions outpaced uptake. Leasing activity was driven mainly by smaller space requirements from consulting, ICT, and professional services firms.

A shift away from the traditional CBD towards suburban office hubs was noted, with growing interest in condominium-style offices that offer ownership flexibility.

Retail Footfall and Sales Climb

Retail was one of the brighter spots. Shopper footfall rose 13%, grocery turnover grew 8pc year-on-year, and occupancy rates in Knight Frank-managed malls improved by 2pc. The sector benefitted from the entry of new international brands, increased mall activations, and better road access. Rental rates remained stable despite the uptick in traffic.

Industrial Sector Remains Resilient

Industrial property maintained its status as the most resilient asset class, with occupancy above 80pc and rents holding steady between $3 and $7 per square metre per month. Demand was led by agro-processing, FMCG, and manufacturing firms.

New warehouse projects emerged in Nalukolongo and Namanve, supported by policy and infrastructure tailwinds — notably tax incentives for local SMEs under the Uganda Tax Amendment Act 2025, and progress on the Standard Gauge Railway.

Cautious Outlook Ahead of 2026 Elections
Looking ahead, Knight Frank sees cautious optimism in the second half of 2025, noting that performance will hinge on market adaptability, infrastructure delivery, and responsiveness to evolving tenant expectations.

With Uganda’s general elections set for early 2026, the property market will likely balance expansion opportunities against potential political and economic uncertainties.

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Kasonkoso, like thousands of informal settlements across Africa, is teeming with ingenuity and resilience; but also risk—lacking the basic services and security that most city dwellers take for granted. As traditional development funding plateaus or declines, African cities are under growing pressure to find new and innovative ways to finance the infrastructure and services required by their expanding populations.  Cities across sub Saharan Africa are under pressure to show own source revenue can be made viable within 3 to 5 years submits Nairobi, Kenya based Azim Manji, an Urban Development and Land Value Capture Specialist with UK Aid.

Informal settlements are too often seen as symptoms of failure: evidence of runaway urbanization, poverty and the inability of governments to keep pace. These communities, home to more than half of Africa’s urban population, are a powerful, untapped engine for inclusive urban transformation. As Sam Mabala, former Commissioner for Urban Development within Uganda’s Ministry of Lands, Housing and Urban Development (MLHUD) and advisor at Cities Alliance and suggests, the key is how cities approach the upgrade and formalization of these areas.

Cities can utilize land value capture (LVC) to channel the rising value of regularized neighbourhoods into the public investments required for growth, equity and opportunity. Christopher Cripps, a senior physical planner and consultant to the Foreign, Commonwealth & Development Office (FCDO), World Bank and DT Global points out LVC is already a routine practice in many Western countries, where mechanisms such as betterment levies, development charges and special assessments help cities reinvest rising land values into public goods and infrastructure.

Africa’s cities are urbanizing at breakneck speed and the scale of informality is immense. According to a UN-Habitat May 2025 report, over 51 per cent of the continent’s urban residents live in informal settlements, often on land they do not officially own. These neighbourhoods, commonly referred to as slums, lack secure tenure, reliable infrastructure and official recognition in city revenue systems.

The consequences are profound. Residents do not invest in their homes, city governments miss out on revenue from property taxes or service charges and in many ways the informal city remains cut off and isolated.  This is a missed opportunity not only for those who live in informal settlements, but for cities as a whole, that lose out on both improved quality of life and much-needed revenue to fund future growth.

When cities invest in informal settlements with the development of roads, sewers, lighting, schools and health centres, the value of the land and homes can rise dramatically. Legal recognition and tenure security alone can multiply property values several times over as households gain the confidence to invest and as markets recognize their rights.

In Kigali, Rwanda, systematic land registration in both formal and informal areas has improved tenure security and sparked new investment and unlocked municipal revenues. A recent study by Jeanne Sorin from the University of Chicago examining impacts associated with of 140 km of road improvements in Kampala between 2017 and 2024 that consulted 548 land owners and 377 real estate brokers reports the value of properties on the side of the upgraded roads also increased by an average of 26 percent. Unless these gains are captured for public benefit, they tend to accrue mainly to a handful of landholders or are lost to the economy of informality warns Christopher Cripps.

Land value capture mechanisms helps to make this transformation sustainable and inclusive. LVC ensures that some portion of the increase in land values, driven by public investment and recognition, returns to the community. When informal settlements are upgraded and formalized, cities can capture part of this value increase through tools such as betterment levies, the inclusion of properties in the local tax net or development charges paid by developers. These revenues can then fund further upgrades, social services and even affordable housing to create a virtuous cycle where rising value pays for continued improvement.

This approach is fair and necessary. Designed inclusively, land value capture can help prevent displacement and channel resources back into communities to generate value. Participatory planning is essential emphasizes Emmanuel Iwong of Welcome2Africa International in Abuja, Nigeria.  When residents are involved in designing value capture mechanisms and deciding how funds are spent, trust and transparency grow. The benefits go far beyond bricks and mortar resulting in cleaner environments, safer neighbourhoods and expanded opportunities for all city residents.

Naturally LVC is not without challenges. Residents often fear that formalization will result in eviction or unaffordable taxes. Many African cities lack the administrative and legal tools to value land accurately, set fair charges or manage new revenue streams attests Iwong. Overcoming these challenges demands incremental, transparent approaches starting with pilot projects, clear communication, meaningful engagement and phased implementation that can allow communities to see real benefits before costs rise.

Some cities are already blazing a trail. In Nairobi, the Mukuru Special Planning Area pilot brings together city agencies, NGOs and residents to co-design regularization and value sharing. Kigali’s citywide registration drive has increased municipal revenue and paved the way for urban investments. In Morocco, the Villes Sans Bidonvilles (Cities Without Slums) programme has leveraged land value capture and public-private partnerships to upgrade informal settlements and deliver new housing at scale. African policymakers are not alone.  Institutions such as the World Bank, UN-Habitat all advocate these LVC as part of a new urban development paradigm for the continent.

Formalizing informal settlements is not only a social good, but a financial and developmental win for African cities agrees Simbarashe Chereni, Guest Researcher in Environmental Politics and Psychology/Spatial Planning at Delft University of Technology in the Hague, Netherlands. Recognizing and organizing these vibrant communities to capture a share of the value that regularization creates can enable city leaders to fund the roads, schools, clinics and parks that drive lasting prosperity.

City leaders, planners and partners must champion land value capture as the key to unlocking the full potential of Africa’s urban future. In this way they will not only improve lives today, but lay the foundation for generations to come: transforming informal settlements from symbols of challenge into engines of shared opportunity and growth.

Christopher Burke is a senior advisor at WMC Africa, a communications and advisory agency located in Kampala, Uganda. With nearly 30 years of experience, Christopher has worked extensively on social, political and economic development issues focused on the environment, energy, agriculture, land governance, communications, international relations and peace-building in Asia and Africa.

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According to the latest Knight Frank Uganda Kampala Property Market Performance Review, this was characterized by low sales and rental volumes, and occupancy rates fell by two percent to 82 pc compared to the same period in 2023 (H2 2023).

However, there was a 1% rise in average rents for three-bedroom apartments due to the introduction of newer, larger, and more modern units, while rents for two-bedroom apartments remained unchanged. The property management and consultancy firm says the decline in occupancy levels is attributed to the upcoming projects in the secondary residential locations.

While these areas are located further away from the CBD (within a five kilometre to 10 km radius), they offer modern spacious units within quiet neighborhoods providing a serene environment at more affordable rates away from noise pollution, increased construction sites, and congestion that has characterized the prime areas of Nakasero and Kololo.

This has, in turn, forced the diplomats, expatriates, and other high/middle- income occupiers who usually prefer the prime areas to consider the secondary suburban locations of Naguru, Mbuya, Bugolobi, and Muyenga among others. The influx of rent-seekers from prime areas to the secondary suburban locations has resulted in significant rental increases within these locations, consequently extending the city’s boundaries.

A notable example is the continuous rise in rental prices in the Kyanja neighborhood, which has led to the development of surrounding areas such as Kungu, Komamboga, Kitetika, Lutete, and others. H2 2024 saw a continuation of the high-density projects (flats and apartments) as seen in H1 2024.

Demand for prime office space remained consistent, with aver- age net rents at $16.5 and $15 per square meter per month for Grade A and Grade AB offices, respectively. Grade AB rents rose by 7%, reflecting a shift towards more cost-effective options. However, occupancy rates in prime commercial offices registered a slight 1% decrease despite ongoing demand.

Despite these averages, some landlords are achieving net rents as high as $18 per square meter in newly constructed buildings. These buildings, strategically located in the prime areas of Kololo and Nakasero, boast modern designs and finishes, along with ample parking facilities.

The Grade A rental rents held stable in comparison to the H2 2023 rates while the Grade AB rental rates experienced a 7% increase underscoring a shift among cost-conscious tenants seeking affordability without significant compromise in location or amenities.

In spite of robust demand, occupancy levels for Grade A and AB office properties experienced a slight decline, with vacancy rates increasing by 1% compared to H2 2023. This marginal drop is attributed to factors including business downsizing, the completion of NGO and government-funded projects, relocation to lower-grade spaces, office relocations from the CBD to the city suburbs, and market saturation in specific Grade A segments.

In the second half of 2024, there was a noticeable increase in demand for office space outside the Central Business District (CBD), particularly among startups, services and financial sector firms. This shift is driven by a strategic preference to be closer to their customer base, as these locations are where many of their clients reside and conduct business.

Notable office projects in the pipeline include, Pension Towers, Speke Business Park, Plot 5 Luthuli Avenue, Saddler View Office Park, IGG Building, Twed Heights and JLOS House.

The retail sector remained resilient in H2 2024 supported by new market entrants and expansions of existing retailers boosting occupancy growth. Nevertheless, foot traffic fell by 5%, indicating shifts in consumer shopping habits.

On an annual basis, average turnover within the general grocery retail category increased by 2.8 percent, occupancy levels across Knight Frank-man- aged malls increased by 1.72 percent, rising from 80.7 pc in H2 2023 to 82.4 pc in H2 2024 while average footfall figures de- creased by 5% percent.

These mixed indicators—rising turn- over and occupancy alongside declining footfall—suggest a nuanced shift in consumer behavior. While increasing occupancy and turnover figures point to consistent consumer demand, the decline in footfall figures suggests that some consumers have changed their shopping patterns.

The continued development of neighborhood malls within the Greater Kampala Metropolitan area has likely contributed to the decline in footfall observed in Kampala’s larger retail malls.

Smaller malls offer increased convenience for local residents due to their proximity to residential areas, reducing travel time. However, these neighborhood malls typically offer limited parking capacity and a less diverse tenant mix, primarily featuring local retailers with limited presence from international and regional brands.

The industrial sector remained stable, with rental rates consistent with those in H2 2023 and occupancy levels above 80 pc. There was an increased uptake of warehouse space, particularly from SMEs, start-ups, and businesses establishing distribution centers. Additionally, there was also a rise in demand for industrial properties, particularly for land within proximity to the CBD.

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Scheduled to take place on September 20, 2024 at Kampala’s Imperial Royale Hotel, the one-day event, will be preceded by a two-day Architectural Clinic where members of the public will get free expert advice on execution of construction projects. The clinic which will held at Oasis Mall from 8:00 AM to 5:00 PM, will be open on September18 and 19.

According to USA, the symposium will bring together key players and thought leaders from across the construction industry to engage in discussions around critical themes shaping the future of construction in Uganda.

In a rapidly evolving construction landscape, the symposium will focus on four key sub-themes: Project Financing, Compliance, Sustainability, and Innovative Construction Technologies. These topics will be addressed through a series of presentations and panel discussions led by renowned experts in the field.

“Participants will gain valuable insights on how to navigate the complexities of financing, regulatory requirements, and integrating cutting-edge technologies for sustainable construction. The symposium is expected to attract a broad spectrum of professionals, including architects, engineers, valuers, quantity and land surveyors, contractors, lawyers, and representatives from finance institutions, as well as manufacturers and suppliers of construction materials. With such a diverse group of participants, the event will offer a unique platform for networking and collaboration among stakeholders in Uganda’s construction sector, “said Mr. Patrick Komaketch from the Uganda Society of Architects.

During architectural clinic, professional architects will engage with the public, offering free consultations and advice on architectural matters. The clinic is designed to provide an opportunity for members of the public to interact with experts, ask questions, and seek guidance on a wide range of architectural and construction-related concerns.

This initiative forms part of the USA’s efforts to fostering stronger connections between architects and the community. Participation in the Architectural Clinic is free of charge and open to the public. However, attendance for the main symposium at Imperial Royale Hotel will require a registration fee of UGX 250,000. Payments can be made to the Uganda Society of Architects’ account at Standard Chartered Bank, Account Number 0102010622200, or via MTN Mobile Money using the code 633540.

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At the beginning of April BoU raised the Central Bank Rate to 10.25 pc from 10 pc, however it reverted back to 10 pc after an easing off of inflationary pressures and signs of recovery in the economy.

The real estate consultancy and management firm said the prime residential and prime commercial office markets exhibited a slowdown in performance in H1 2024, marked by a low volume of sales and lettings and a minimal one percent decrease in occupancy levels compared to H1 2023.

The residential rental prices remained stable and there is a noticeable increase in pipeline activity with over 1,000 units expected to be released onto the market over the next 12-24 months. There remains a persistent demand for units within the $200,000 to $300,000 price range in prime areas.

According to the report, ‘Demand for prime residential units continues to be driven by the expatriate community working in Uganda and Ugandans in the diaspora, with a noticeable preference for two and three-bedroom apartment units and standalone houses respectively. Naguru, Kololo, Nakasero, Mbuya, and Bugolobi dominate as the preferred prime residential areas; however, there has been increased interest in Lubowa, Kigo, and Muyenga areas.The increased interest is from developers looking to set up gated communities to compete against the continued supply of apartments in Kololo’.

However, prime office space demand persisted, with prime net rents recorded at $16.5 and $15.0 per square metre per month for Grade A and Grade AB, respectively. There has been a slight decline in occupancy levels for Grade A and AB properties, with vacancy rates increasing by one percent compared to H1 2023.

The retail sector registered notable performance in the first half of 2024,  benefitting from a resilient economy, increased occupancy levels resulting from new entrants, the expansion of existing retailers within the sector, and strong product and tenant-mix offerings within the various malls.

The report states: ‘H1 2024, registered a slow take-up of warehouse space while a slight increase in industrial land for sale was noticed. BoU announced the start of a Domestic Gold Purchase Program to build the country’s foreign reserves and minimize risks on reserves investments, a program that will impact the livelihood of artisanal and small-scale miners directly, with positive spillover effects on other economic sectors’.

The sluggish start witnessed at the start of the year persisted throughout the half year. In the period under review, the market was strained, with supply outstripping demand, thus creating a buyer’s market. The increased residential properties supply was on account of stock from the development pipeline, off-loading properties through auctions and  repossessions by banks and other credit institutions as well as individuals and companies disposing off properties to cater for their liquidity needs.

This has resulted in increased interest in distressed sales as buyers take advantage of the market skewed in their favour. The sales market for home ownership and investment properties continues to grow steadily in the affordable–middle– income segment of the commuter towns such as Kira, Mbalwa, Kyanja, and Kungu, among others, as developers strive to meet the continued housing demand from the growing population.

The average prime monthly rents for 2- and 3-bedroom apartment units in the review period remained stable compared to H1 2023, while occupancy levels declined marginally from 82% to 81%. Old, detached houses/re-development plots in the prime residential areas continue to be demolished and replaced with modern apartment blocks. Developers are taking advantage of economies of scale from the densification of Brownfield sites with multi-let units, increased rental incomes, and shared operational costs.

This trend has been observed in the prime areas of Nakasero and Kololo, where new developers are debuting in high-density residential developments. This trend has created a gap in the market for the supply of stand-alone houses, with tenants looking for stand-alone houses turning to the secondary residential areas of Mbuya, Munyonyo, Muyenga, and Bugolobi, among others.

In response to tenants’ demand for modern interior finishes and more amenities, developers are upgrading the specifications for developments in secondary residential suburbs, albeit at higher rental and sale prices. The dollar rental/sale market continues to grow to the secondary residential suburbs of Nalya, Kyanja, Bukasa, and Najera, among others, especially in newly constructed projects.

Access to fast and reliable internet continues to be an essential factor for tenants when selecting accommodation; this has resulted in the existing  telecom companies expanding their optical fiber networks to the secondary residential suburbs with new players like Canal Box entering the industry. Several access roads to the commuter towns are being upgraded from murrum to tarmac while others are being resurfaced under the Greater Kampala Metropolitan Area Development Program. Better quality road networks will have a positive impact on the marketability and land prices of these suburbs.

Demand for smaller office space (50-150 sqm) has persisted from the IT/telecom, retail, legal services, business and professional services, energy, industrial, and financial service sectors.

Deal conclusion for larger spaces (200-1,500 sqm) is taking an unusually long time to conclude, as a result of complex decision-making and due diligence processes in line with corporate governance requirements and increasingly stringent requirements from the Uganda Registration Services Bureau (URSB) and the Uganda Revenue Authority (URA).

Pipeline office projects include Pension Towers, Lumumba Avenue; Speke Business Park Yusuf Lule road; Plot 5, Luthuli Avenue Luthuli, Bugolobi; Saddler View Office Park (Mixed) Saddler Ave, Naguru; IGG Building Opposite Garden City; Twed Heights Kyadondo 13 and JLOS House at the Naguru Police Campus.

The demand for larger spaces is being driven by public entities, NGOs, financial institutions, telecommunications, and industrial & logistics organizations, among others. According to the report, ‘Occupancy levels for less prime properties are being negatively impacted by organizations looking to downsize, relocate to more affordable or better facilities, and or close shop. The increased stock of high-specification, modern office buildings with higher parking ratios coming onto the market at rental levels which are comparable to current passing rents are offering better value for money to occupiers in older stock.

‘Thus, we are seeing older properties being upgraded and refurbished given that they are in excellent locations and still able to achieve decent rental levels on account of this, Lease terms for small office occupiers (20-150 sqm) range between two and three years, with most requesting breakout clauses after six to 12 months while the lease duration for large office occupiers ranges between three and five years,’ the report reads in part.

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