Occupancy rates in prime residential suburbs declines

By Wasswa Deo
Knight Frank Uganda has registered a 5% year on year decline from 86% to 81% in occupancy rates for the prime residential suburbs of Kololo, Nakasero and Naguru.

The main reason for this decline, is the fact that tenants opted for accommodation in other suburbs where rents are slightly lower, and yet the quality of stock available is newer and of similar if not better quality than is available in the prime suburbs.

This was among the key highlights in 2018 Real Estate Market Report titled “Kampala market Update” released today by Knight Frank Uganda.

The report covers real estate sector performance in the month of July to December 2018.

Other highlights in the report including, 4% annual increase in the take up of new warehouses built in the last 1-3 years.

CO-Working and shared offices are becoming more attractive options for occupiers.

Speaking during the report launch, Judy Rugasira Kyanda, the managing director Knight Frank has however noted that the Landlords-Tenants Bill 2018 which is in Parliament is likely to destroy the relationship between the landlords and their tenants if is passed in its current form.

She says it’s good to have such act in place, but it should be drafted in away where both landlords and tenants are favoured.

Among the clauses in the bill she cited to affect the real estate sector including, Land lords cannot annoy tenants, landlord cannot increase rent to a tune of 10% per year, land Lords cannot request for three months advance from tenants among others