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Friday, 8 January 2016

Trends That Will Influence The Real Estate Sector in 2016




Lamudi Uganda shares with you the top real estate trend that will influence this year. Last year proved to be a challenging year for the real estate sector in Uganda but this year we are bound to see the rewards of all the hard work that was put in. One of the main reasons as to why 2016 will be a good year for real estate is that we expect more cash flow in the economy due to more employment opportunities. Shakib Nsubuga, Country Manager of Lamudi in Uganda, said: “With 2016 here, there are many opportunities to be ceased especially in the real estate sector. An increase in employment opportunities means that we will have more people investing in the real estate sector.”
This week we share with you the real estate trends that will influence the real estate sector this year.
Growth in property sales and prices
Property sales and prices will experience a healthy and steady growth due to the investments that will be seen in the sector. This will bring back a consistency and predictability in the sector which will be an added advantage to stakeholders and investors as they will be able to monitor their assets and investments.
Investments by millennials
This year we will see an increase in the number of millennials purchasing/renting property in the country. Young adults are slowly making it to the middle class income earners bracket and this will see them invest in the real estate sector in large numbers by buying or renting their first homes.
Availability of affordable housing
In 2015 we witnessed higher material costs, limited and expensive labor, and a limited market demand which led to the construction of expensive properties that are more profitable in the long run. However with the growth in the demand for affordable housing we will be able to see an increase in the construction and availability of affordable housing.


Fluctuating mortgage rates
2015 brought along fluctuating mortgage rates, unfortunately this trend is bound to continue in 2016. This fluctuation will be dependent on the dollar rate changes. However we are hopeful that the mortgage rate shall maintain a constant average despite the fluctuations.
Increase in rental prices
Last year we saw a swap in currencies when it came to rental prices with most landlords charging rent in dollars and not shillings. This is set to be a bigger trend this year due to the increase in prices of utilities and construction materials. This will mean that rental prices will face an increase due to the high dollar rate and change in currency. 

MEDIA CONTACT
Rebecca. K. Kamugungunu
Communications Manager
Email: rebecca.kamugungunu@lamudi.co.ug
Web: http://www.lamudi.co.ug/ 

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