The Covid-19 pandemic has seen a drop in occupancy by high-end office buildings and commercial residential units in Kampala, a new report shows.
According the July 2021 Kampala Market Performance Review compiled by Knight Frank Uganda, downsizing, merging and relocation to owner occupied premises have been observed since the beginning of 2021.
The report indicates that average occupancy rates posted by high-end office buildings dropped from 84 percent during the first six months of 2020 to 81 percent during the same period in 2021.
This decline is attributed to downsizing of space requirements, relocation, increased supply of prime office space and working from home.
Average rental prices levied in high-end office premises also fell by about three percent during the first six months of this year compared to the same period in 2020.
An extra 6,000 square metres of office space was added to the local property market during the first six months of 2021, the data shows.
Average occupancy rates registered among high end, commercial residential units dropped from 70 percent during the first half of 2020 to 68 percent during the first six months of 2021.
The report attributed this to the peaceful conclusion of the January 2021 general elections and the return of numerous expatriate employees that had left Uganda shortly before the beginning of the first lockdown period that lasted from April to June 2020.