Because the Ugandan economy carries on developing, the property market will grow. Many of the property sector shareholders however will probably not need time to control the properties themselves on a day to day basis. They will progressively rely on property management firms. Property managers in orlando
Before considering property management in Uganda as an investment option, the investor needs to however be aware of the following:
one particular. Legal hurdles.
You should know that in Uganda, because of the poor land tenure system, combined with administrative issues and corruption, property purchase and construction is often fraught with legal problems. It is not necessarily uncommon for individuals to obtain against the law planning permits for construction of properties in say gazetted zones like wetlands and forest reserves. Subsequently correcting this irregularity has often resulted in long gradual legal processes and the proprietor and so the property administrator often lose revenues during the non occupancy of the disputed property.
Property management organizations like any other businesses need to exhibit an increased degree of integrity for prospective clients to handover the properties. In Uganda there have been some high-profile court cases including property managers, including one of your leading property management firm whose managing overseer conned a potential consumer of advance monies paid. There was a substantial reputation loss. If you are considering investing in this sector, you should therefore ensure you conserve the high standards of professional values such as separating customer and office monies as well as maintaining good accounting records, otherwise your reputation can certainly be dinged up.
3. The property market bubble.
Whilst the global credit crisis continues demoralizing property values in places including the USA and the UK, In Uganda this is not particularly being felt for a multitude of reasons. In the commercial sector, malls and shopping centres continue to emerge in the capital city Kampala and its particular suburbia to cater for the growing middle class and increasing population therefore of rural- urban migration which is currently estimated at 3%-5% per annum.
On the residential sector due to a general debt of housing there is always demand for property and as such the property values keep increasing. The shortage of casing is generally because just like many cities across sub Saharan Africa, rural-urban migration to Kampala has resulted in significant populace growth not matched by construction and so triggering a shortage of housing, especially for the low and middle level income earners.
The main likelihood of the property bubble in Uganda would arise from political instability which would lead to collapse of the sector.
The competition for property management in this sector is as follows:
At the very top end of the market are international property management firm affiliates like Dark night Frank. In addition there are ISO certified companies like Amalgamated Property Sales staff (APS) as well as large and reputable property management companies such as Crane Management services which is under the Ruparelia Group of companies.