NHCC’s Strategic Housing Shift Addresses Growing Demand for Affordability
World Business Journal talks to Kenneth Kaijuka, CEO of National Housing and Construction Company, about the progress of their real estate projects in Mbarara and Naalya, the potential impact of the proposed Real Estate Bill 2024, and the urgent need to rethink housing strategies.
How have real estate development projects in Mbarara and Naalya progressed?
In Mbarara, we have yet to initiate the second phase, but prospects for 2025 appear promising as we have transitioned some units from sales to rentals.
Understanding that over 80% of Ugandans reside in rental properties and most are under 35 years old and not yet prepared to purchase homes, we have implemented a rent-to-own model.
This strategic shift has resulted in full occupancy for these units. We are currently in discussions with financiers and should secure more funding soon to complete the next phase, which includes 100 units.
In Naalya, significant progress is being made. We are on track to hand over the 60-unit Jasmine project this year. At our Naalya Pride site, our objective is to construct 20 blocks, each 8 levels high, resulting in approximately 502 units. Currently, the first of the three blocks has reached level 6, while the other two are at the foundation stage, with their foundations already completed.
What is your opinion about the provisions outlined in the proposed Real Estate Bill of 2024?
The proposed real estate bill is a promising step forward, establishing order among landowners, developers, brokers, and agents. This regulation aims to reduce informalities and promote better negotiations by setting minimum standards for all parties involved.
As the industry evolves—incorporating concepts like green housing, vertical development, and urban regeneration—the bill may need updates to stay relevant. Although not perfect for everyone, the bill is largely beneficial for the real estate sector’s growth and development.
Are current government programs in Uganda adequate for addressing the housing gap, or is a national initiative for first-time homebuyers necessary?
In Uganda and much of Africa, there is a pressing need to rethink housing strategies. The real estate sector isn’t realising its potential, partly due to its prolonged sales cycles and reliance on bank loans.
Government prioritisation is essential; housing must become a key facet of national planning and funding priorities. Simplifying solutions through clear guidelines—like determining standards for affordable housing—will help effectively cater to diverse income levels.
