Investment Property in Kampala

Investment Real Estate in Kampala

Investment Property in Kampala
Investment Property in Kampala

Kampala property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Kampala .

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Search Map of Kampala Investment Real Estate

Kampala (, US: /kɑːmˈ-/) is the capital and largest city of Uganda. The city proper has a population of 1,680,000 and is divided into the five boroughs of Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division, and Rubaga Division.

Kampala’s metropolitan area consists of the city proper and the neighboring Wakiso District, Mukono District, Mpigi District, Buikwe District and Luweero District. It has a rapidly growing population that is estimated at 6,709,900 people in 2019 by the Uganda Bureau of Statistics in an area of 8,451.9 km2 (3,263.3 square miles).

In 2015, this metropolitan area generated an estimated nominal GDP of $13.80221 billion (constant US dollars of 2011) according to Xuantong Wang et al., which was more than half of Uganda’s GDP for that year, indicating the importance of Kampala to Uganda’s economy.

Kampala is reported to be among the fastest-growing cities in Africa, with an annual population growth rate of 4.03 percent, by City Mayors. Mercer (a New York-based consulting firm) has regularly ranked Kampala as East Africa’s best city to live in, ahead of Nairobi and Kigali.

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The financial stability of Kampala has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Kampala

Renting out your Kampala buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Kampala are – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Kampala and be prepared to change your initial outlook.
  • Thoroughly research the Kampala location with a special emphasis on fringe areas outside the main Kampala metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Kampala.
  • Ensure that your target investment property in Kampala appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Kampala properties yourself is an easy option, but are these savings justifiable when you run into Kampala red tape? Physis Realty Kampala office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Kampala buy-to-rent sector.

With our expert guidance, investing in Kampala provides the secure knowledge that your money is working harder than it would in a local Kampala bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Kampala, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kampala property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kampala

Flipping property in Kampala

Flipping property is when we advise clients to buy a Kampala property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Kampala market has a time to react to the renovation.

The Flipping Strategy in Kampala

Investment property flipping in Kampala is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Kampala real estate investments are sometimes referred to by professionals as ‘distressed’ Kampala real estate.

What is distressed Kampala property:

  • Kampala property in need of renovation
  • Kampala real estate with a change of purpose and use
  • Oversold Kampala property
  • Bank repossessions in Kampala

Put simply, long term investors in Kampala purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Kampala investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Kampala property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Kampala use a minimum profit value of 22% when looking at potential Kampala projects. The reason for this is because there are lots that can go wrong in Kampala property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Kampala

For luxury property investors hoping to add a superb property in Kampala to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Kampala, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Kampala should be entrusted to only the highest-quality agency.

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