Background

Ugandan Real Estate Sector

The real estate sector in Uganda is a fast-growing market. The sector in Uganda currently consists of developers, mortgage banks and real estate agents (both well established companies with physical addresses and informal agents commonly referred to as brokers). Among real estate agents, the brokers still form the majority. These mainly operate on the streets working under temporary structures with no trading license, sometimes under a tree, behind some buildings or at home. Most of these brokers have minimal education. Generally it is an informal group.

 Since the market has been circulated by uneducated practitioners in the discipline, the media has often branded the sector as an unscrupulous venture, where inflating of prices of property and unreliable service delivery has been the day-to-day characteristic. Unfortunately, the officially registered companies and professionals have been subject to the negative impact of society’s resistance of their services and as a consequence, many businesses have collapsed and services distorted, despite the fact that these are needed by the majority of the Ugandan society.

 The major challenge therefore is lack of professionalism in this industry. Most of the practitioners lack the necessary skills to provide professional services.

 

Background and Strategy

An umbrella organization founded in 2008 which currently has about 375 members, with the number varying each year. The Association of Real Estate Agents of Uganda (AREA-Uganda)‘s mandate is to professionalize the real estate sector in Uganda as well as to create awareness of its benefits as an engine for economic growth. Since 2008 AREA-Uganda has been working with the International Real Property Foundation (IRPF)—a nonprofit organization dedicated to the development of private real property markets around the world—to strengthen AREA-Uganda’s institutional capacity by receiving technical assistance in the areas of strategic planning, non-dues income generation, core real estate courses, and targeted financial support. Therefore, AREA-Uganda continues to propose interventions and among others Monthly meetings to bring together members and the general public to discuss issues that are pertinent to the Success of the real estate industry. 

AREA-Uganda was formed to bring real estate agents/managers and others interested in the sector into one body to work collectively towards developing a professional real estate sector in Uganda and creating awareness of its benefits as an engine for economic growth.

AREA-Uganda continues to enable skills enhancement and networking among its members through monthly meetings, in which every last Friday of the month a different theme is being discussed with the assistance of invited guest presenters. Additionally, AREA-Uganda continues a campaign of recruitment of new members.