There have been over last 10 years an increasing number of privately owned residential homes in Kampala. It is important that very few affordable properties are being developed to serve the lower end of the market where majority of Ugandans fall. The majority of Ugandans living in urban areas earn less than Ushs 300,000 per month. They cannot afford reasonable accommodation within their level of income. The lack of affordable housing for this group of people is in away contributing to the rapidly increasing number of slums in urban areas.
The challenge remains the availability of low cost housing mortgages facilities on the Ugandan market for people to access for acquisition of properties. A number of financial institutions are currently offering mortgage products for building or acquiring properties in the following areas:
- Residential homes
- Commercial building in urban areas
- Land purchase mainly around urban areas.
The banks prefer properties around the urban areas because they are appreciating in value much faster and they are also quite easy to sale in case the borrower defaults.
The banks which are providing mortgage finance include the following:
- Housing Finance Bank
- DFCU Bank
- Stanbic Bank
- Barclays Bank
- Standard Chartered Bank
- Centenary Bank
- KCB
The areas with residential homes include;
- Muyenga
- Ntinda
- Kololo
- Mutungo
- Mbuya
- Bukoto Munyonyo
- Naguru