Uganda residential property prices jump 9.2 percent as demand surges

KAMPALA, Uganda — Residential property prices in Uganda surged 9.2 percent in the year ending with the second quarter of the 2025-2026 financial year, according to data released by the Uganda Bureau of Statistics.

The increase reported by UBOS is nearly double the 4.7 percent growth recorded in the previous quarter. The Residential Property Price Index indicates that housing costs are accelerating, particularly in the Greater Kampala area.

Wakiso District remains the most expensive market for prospective homebuyers. Prices in the district rose 16.9 percent, fueled by limited land availability in the capital city. While this is a slight dip from the 18.3 percent increase recorded previously, Wakiso continues to lead the country in price appreciation.

In Kampala Central and Makindye, the market showed signs of recovery. Prices in those areas rose 2 percent following a 10.2 percent decline in the preceding quarter.

Other divisions also saw gains. Kawempe and Rubaga reported a 9.5 percent increase, up from 6.4 percent. In Nakawa, prices rose 5.8 percent, a slower pace than the 7.8 percent growth seen earlier.

UBOS Executive Director Chris Mukiza said the figures reflect robust demand for housing in urban and peri-urban areas. On a quarterly basis, overall prices rose 2.6 percent.

For the 2025 calendar year, average residential property inflation stood at 5.6 percent, compared to 4.6 percent in 2024. Wakiso again led the annual trend with an 11.6 percent increase, a significant jump from the 2.1 percent growth recorded the previous year.

Experts attribute the rising costs to several factors, including rapid urbanization and a young, growing population. Infrastructure projects, such as new expressways, and an influx of foreign investment are also driving property values higher.

The trend suggests that homeownership is becoming increasingly difficult for many Ugandans. Rising property values often lead to higher rent, pushing those seeking affordable options further away from the city center.