Kampala Property Market Slows as High Interest Rates Bite Homebuyers
By The Urban Gazette Real Estate & Economy Desk
Kampala, Uganda
Kampala’s property market is showing signs of slowdown as high interest rates and rising construction costs reduce demand for residential housing, according to real estate developers and market analysts.
Sales of mid-range apartments and standalone homes have declined over the past six months, with developers reporting longer listing times and fewer cash buyers. Mortgage rates remain elevated, placing homeownership out of reach for many salaried workers.
However, rental demand continues to hold steady, driven by urban migration and limited affordable housing supply. Analysts say landlords are increasingly shifting focus from sales to rental units to stabilize cash flow.
Despite the slowdown, industry experts believe the market remains resilient, particularly in prime locations such as Kololo, Naguru, and Muyenga, where demand from expatriates and high-income earners persists.
Why It Matters
The property sector is a major driver of employment and investment in Uganda. A prolonged slowdown could affect construction jobs, bank lending, and urban development plans.
What to Watch
Changes in Bank of Uganda interest rate policy
Shifts in rental prices across Kampala suburbs
Government housing and urban planning initiatives
