Withing the months that the Covid-19 pandemic has been in the world, many people have been affected especially those who are in the residential and rental business.
According to Uganda bureau of statistics (UBOS), stated that due to the performance of the general slowdown of the daily activities in the economy, the value and prices of rental and residential properties in the country especially Kampala have fallen.
Under the residential property price index, the property prices in the real estate fell by an average of 10.5 within the first quarter of the year 2020/2021 mentioning Kampala and Makidye being the worst hit. Among other places mentioned are Rubaga, Wakiso, Nakawa, Makindye and Kawempe.
It stated that the most affected real estate sector was the rentals According to data released by Ubos under the Residential Property Price Index for the first quarter of the 2020/21 financial year, property prices in the real estate sector, especially rentals, fell by an average of 10.5 per cent with Kampala and Makindye being the worst hit.
According to Ubos, within that period of time, property prices in Nakawa and Wakiso were the worst hit, falling by 26.4 per cent and 9.5 per cent, respectively. Kawempe and Rubaga, registered the least decline of 1.6 per cent respectively, while Kampala Central and Makindye registered a drop of 6.5 per cent.
Equally, there has been a fall in the quality of the assets just like Knight Frank and Bank of Uganda predicted in their earlier studies of the real estate sectors.s
The Central Bank noted that assets quality in the real estate sector had, for the first time since 2007/08, declined in real value, which presented “risks to credit performance arising from the real estate sector”.
In its performance of the economy report, the Central Bank indicated prices of residential properties across the country had fallen by an average of 2.9 per in the first half of 2020.