Real Estate Cycles and Opportunities in Uganda
When it comes to Uganda's real estate sector, Moses Lutalo, Managing Director of Broll Uganda Ltd Uganda, is a veritable font of knowledge and expertise.
Recently, he sat down with me for a no-holds-barred conversation shedding light on the sector’s contribution to Uganda’s economic growth, opportunities, challenges, and the way forward.
Here's an exciting rundown of the discussion.
He highlights the need for robust infrastructure investment, he paints a vivid picture of how roads, water systems, and train infrastructures can open up new neighborhoods and stimulate economic activity. "The Jinja Express highway should have been built 10 years ago, but better late than never," Moses noted, emphasizing the importance of timely infrastructure development.
According to Moses, real estate follows economic patterns. Investors need to be aware of both macroeconomic and microeconomic factors before diving in. For instance, understanding GDP, inflation, central bank rates, and specific site factors like zoning and feasibility are crucial for making informed decisions. "Real estate is long-term, so if you want to invest, you must have a long-term view," says Moses, offering sage advice to potential investors.
3. Emerging Trends.?
ESG and PropTech The conversation takes an exciting turn when Moses introduced the key trends shaping the future of real estate. a) Environmental Social Governance (ESG) and b) Property Technology (PropTech). Highlighting the sector's significant #carbon footprint, he stresses the growing importance of green-certified buildings and sustainable practices. "Everyone has to report on #ESG," reiterates Moses, pointing to a sustainable future for real estate. Additionally, PropTech, encompassing everything from smart homes to 3D printed houses, promises to revolutionize the industry.
4. The Passion Behind Real Estate.?
This is the driving force behind success in real estate. For things like addressing landlord’s late-night emergencies and managing complex projects, Moses emphasizes the need for dedication and enthusiasm. He shares, "When you build real estate, you're creating real opportunities for people."
5. Openings and Challenges - The Way Forward.
Moses identified the untapped opportunities in Uganda's real estate market, fed by a growing young population and increasing disposable incomes. However, he recognizes challenges such as land management issues and a lack of regulation and data. "Security of tenure is a significant risk," he admits, calling for more structured land ownership systems and better access to market data to attract institutional investors.
6. Future Predictions Looking into his crystal ball.
He predicts an expansion and transformation with new roads and infrastructure, more neighborhoods will become accessible, reducing the pressure on city centers. "We're going to see a lot more neighborhood malls as people begin to shop locally," he notes, forecasting a shift in retail patterns driven by the pandemic-era preference for local convenience.
7. Wisdom for Investors.
For anyone looking to invest in Uganda's real estate, Moses urges thorough market research and feasibility studies. "Do your numbers. Do your homework. Speak to professionals," he advises, drawing attention to the importance of proper planning and informed decision-making.
8. Achieving a Middle-Class Economy.
As Uganda marches towards the vision of a middle-class economy by 2040, Moses highlights the critical steps needed, including a systematic and inclusive tax system, prudent infrastructure investment, and a focus on industries like agriculture and tourism. "We need to mobilize our #resources locally and deploy them effectively," he concludes.
Moses Dennis Lutalo was both enlightening and inspiring, his insights shared here are crucial for anyone interested in the sector, offering a roadmap to navigating its complexities successfully.
As Uganda continues its journey toward economic development, leaders like Moses provide the vision and guidance needed to make it happen.
Would you listen to those podcast episodes?