Lands, Housing and Urban Development Minister Judith Nabakooba has called for stronger regulation, innovative financing and improved land administration to unlock Africa’s real estate potential amid rapid urbanisation and a growing housing deficit.
Ms Nabakooba said Africa’s urban population is projected to reach about 1.3 billion by 2050, while the continent faces a housing shortage of more than 50 million units.
She said the figures present both a challenge and an opportunity for governments, developers, investors and other players in the property sector to work together to provide affordable housing and well-planned urban settlements.
“Government resources alone cannot meet this demand. We need better planning, stronger partnerships, new sources of finance and responsible investment,” Ms Nabakooba said.
She was speaking yesterday at Speke Resort and Conference Centre, Munyonyo, Kampala, during the 25th Annual Conference of the African Real Estate Society (AfRES), held under the theme: “Transforming African Real Estate for Sustainable Growth and Innovation.”
Ms Nabakooba said real estate should be treated as a key component of Africa’s development agenda because the sector provides housing, workplaces and facilities for production and trade, while creating employment in construction, valuation, brokerage, financing and property management.
She said Uganda’s development priorities under Vision 2040 and the Fourth National Development Plan require secure land, planned settlements, housing and supporting infrastructure.
She cited agro-industrialisation, tourism, mineral-based industrial development, including oil and gas, and science, technology and innovation as key growth areas that require properly planned land and infrastructure.
Financing challenge
However, Ms Nabakooba identified access to affordable, long-term financing as one of the major constraints to real estate development on the continent.
She said Uganda is working towards a mortgage refinancing framework to provide liquidity to primary mortgage lenders and support longer-term lending.
“Mortgages alone cannot solve the housing challenge, especially for low- and middle-income households,” she said, calling for savings schemes, cooperative finance, housing microfinance, developer finance and rental housing finance.
Real estate experts also called for affordable financing options to enable low-income earners to access housing.
Dr Racheal Mirembe, a board member of AfRES, said mortgage financing in Uganda remains expensive, with the lowest bank interest rate at about 17 per cent, higher than rates in several other African countries.
She called for longer mortgage repayment periods, from the current five years to as much as 25 years, to make housing more affordable.
Climate and regulation
Ms Nabakooba also warned that climate change must be considered in planning and construction as floods, heat, drought and water scarcity increasingly affect cities and property values.
She said flood mapping, climate information and disaster-aware building standards should guide decisions on where and how new developments are constructed.
The minister further disclosed that the Government is fast-tracking the Real Estate Bill, which she said would help professionalise the sector and protect the public from unqualified agents, property managers, fraud and false representation.
“Good regulation should make transactions clearer and more predictable. It should also promote professional standards and ensure that institutions can hold wrongdoers accountable,” she said.
Research and training
The conference brought together policymakers, academics, researchers, investors, developers and real estate professionals from across Africa and beyond.
MUBS Principal Prof Moses Muhwezi said universities have a responsibility to provide reliable property data to government and industry to support evidence-based policymaking.
He said MUBS has offered a Bachelor of Real Estate Management programme since 2007 and is seeking to expand its training to postgraduate levels.
He challenged universities, government and private-sector players to work together to turn research into practical solutions for Africa’s property sector.
“Real estate is important to the economy. We know that the economy has been dominated by the informal sector, with very many land agents being unprofessional,” Prof Muhwezi said.
