Housing Parterns in Uganda 2013

By Alex Taremwa

ataremwa@nokiamail.com

 In 1986, when the NRM took power, there was a housing crisis in Kampala. Ugandans feared to put up houses under the Obote regime because of the general wave of insecurity and high inflation, which wasn’t conducive for investment Official figures indicate that growth in the sector has averaged 7% over the last few years. With a GDP growth rate averaging 6.5% and population growth average of 3.4% per annum, the demand for decent and affordable housing has experienced an upward trend. The growth is also a result of a drastic rise in people’s standards of living.

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 A recently released housing survey by the Uganda Bureau of Statistics points at an improvement in housing, but states that there is still a gap to be filled if the majority of the poor are to fully realize this right. The survey indicates that Uganda has a housing deficit of 550,000 units. About 160,000 of this backlog is in urban areas. Kampala alone has a housing deficit of 100,000 units.
Uganda’s population of 35 million, which is growing at a rate of 4.7% per year is projected to increase to 45 million by 2020. With a rapid rate of urbanization, it is estimated that two decades from now, Uganda will have a housing shortage of close to 8 million units, of which 2.5 million will be in urban centres and one million in Kampala.

“The Government promised to pay for the development of public goods in planned estates like water, sewerage, electricity and roads. When the real estate developers have incurred costs of developing these amenities, we have refunded their costs,” he says.

The influx of large scale residential areas was also a major tenet in the 2006 manifesto. National Housing and Construction Company (NHCC), the Government house construction arm, for instance, has acquired and erected properties in Bugolobi, Naalya, Lubowa and Bukoto for Uganda’s rapidly growing middle class.

NHCC has also been overwhelmed by the demand, which is slowly being filled by the private real estate developers. Akright Projects has set up 10 housing estates in and around Kampala. Other players in the housing sector include Jomayi Estates Ltd, HL Investments Ltd, Tirupati Ltd, Pearl Estates, and Hosanna Ltd

The boom in the housing sector is, the driving force that has pulled many real estate developers into committing huge financial resources to this sector.
“Many individuals as well as companies are coming on board to provide cheap, cost-effective houses. They are interested in bridging the gap in housing, a role which would have been spearheaded by government,
“Uganda lacks both a housing policy and an urbanisation policy to regulate and accelerate the construction of housing units.”

The Government also promised to capitalise the Housing Finance Company of Uganda so as to increase its capacity to finance mortgages for the low and middle-income earners and increase access to housing mortgages.

“In a quest to make it possible for every Ugandan to own a decent house, the government has made mortgage finance affordable by making interest payments on mortgages tax deductible and reviewing taxes on home-ownership. The Government has also ensured that NSSF plays a leading role in providing long term funds
In ensuring a habitable city, the Government has also procured land and built low-cost houses for the urban poor who live in slums. The Namuwongo and Kisenyi 11 projects are such examples.

 

Executive flats, maisonettes and bungalows in top class residential areas of Bugolobi (872), Bukoto White (130), Bukoto Brown (180), Kololo (80), Nakasero (44), Wandegeya inter alia (136). Middle to low housing estates where built in Kiwafu (51) and Mulago.

b) Upcountry

NHCC built several upcountry housing projects in the following towns: Arua, Entebbe, Gulu, Hoima, Kabale, Jinja, Lira, Masaka, Mbale, Mbarara, Moyo, Soroti and Tororo.

c) Infrastructure development

The company has also built several office blocks, which include: Crested Towers, Uganda Posts and Telecommunications building, Tororo Town Council and District Administration Headquarters building. Other contributions extended to the construction of social and public infrastructure includes school like St. Henry’s College Kitovu, hospitals like Mengo and Adjumani, Nakasongola Airbase and Entebbe International Airport.

1989-2005

In 1989, NHCC aggressively embarked on increasing the housing stock in the country as well as rehabilitation of various properties, which were run down during the various wars in the 1970s and early 1980s. The growth that has taken place in the last 18 years is unprecedented and is attributed to the Movement government, which among other things has continuously provided a conducive environment for real estate development.

By 2005, the Company had completed 604 housing units in the following projects:

Mpumude Housing project-(20) units, Bukoto housing project -110 houses (50 marionettes, 35 bungalows and 25 shell houses) Ntinda Housing estate – 79 houses ( 25 bungalows and 54 shell houses)Lubowa 108 Housing project-  86 shell houses in Lubowa, Naalya Housing project-610 houses ( 340 low cost housing units, 55 exclusive shell houses, 215 pride shell  houses ) 

Current activities 2006-2011

The company is active on 7 sites currently namely Kiwatule (268 units), Regina Lubowa (40 Units), and Namungoona Phase I (144 Units), Phase III and phase IV , Kyambogo Estate-6 bungalows, Bugolobi Prefab-96.

Future activities

Bukerere,  Mutundwe Estates (100), Kiwana Apartments-32, Luthuli Rise Apartments, Mbarara and Mukono Estate, Lubowa 80, Naalya pride.

National Housing intends to address the key issue of housing delivery and adequate shelter

 

 As of December 2009, the following are some of the construction and management projects that NHCC is involved in:[4]

  • Sunset Apartments – 268 Apartment Homes (3 bedrooms  each) – Kiwaatule, Kampala
  • Bukoto Housing Project – 105 Housing Units – Bukoto,      Kampala
  • Ntinda Housing Project – 80 Housing Units – Ntinda,      Kampala
  • Naalya Housing Project – 610 Housing Units – Naalya,      Kira Town,      Wakiso District
  • Lubowa Housing Project – 33 Executive Mansions – Lubowa,      Wakiso District
  • Mpumudde Housing Project – 20 Bungalows – Jinja
  • Condominiums Sales have been completed to over 200      tenant-occupants in developments in the following sections of Kampala: Kololo,      Nakasero      and Bugoloobi
  • Condominium Sales are planned to over 1,300      tenant-occupants in the following sections of Kampala: Bukoto,      Bugoloobi and Wandegeya.
  • NHCC has engaged the third parties to construct the      following developments which NHCC does not own:

 

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