Minister of Lands, Housing, and Urban Development, Persis Namuganza, has called for sweeping reforms in Uganda’s real estate sector to address mounting concerns over poor-quality construction and unregulated practices.
Minister Namuganza, whose speech was delivered by Irene Umoja, Commissioner of Housing Development and Estate Development in the Ministry of Lands, during the grand launch of the Waterfront Hotel Apartment Project in Munyonyo by Buildnet, held at Sheraton Hotel, emphasized the importance of the real estate sector, which contributes 12% to the country’s GDP.
“The real estate industry is one of the cornerstones of our nation’s development,” Namuganza said. “It breathes life into our infrastructure, fuels economic growth, and provides livelihoods to countless Ugandans.”
Namuganza expressed concern over complaints raised by homebuyers, especially Ugandans in the diaspora, who had invested heavily in substandard apartments. The Minister revealed that her Ministry’s investigations had uncovered widespread non-compliance with building regulations and deceptive practices by some developers. “We are committed to addressing these issues. Buyers deserve to get what they are promised—safe, well-built homes,” she added.
During the event, Dr. Ibrahim Semaganda, Managing Director of Buildnet, introduced a new business model aimed at addressing the challenges faced by property buyers and investors. Semaganda highlighted the difficulties traditionally faced by apartment owners, particularly when it came to getting a return on investment (ROI).
“Traditionally, someone would purchase an apartment, struggle with maintenance, managing tenants, and end up with a payback period of almost 20 years,” Semaganda explained. “The stress of managing these properties reduced the attractiveness of such investments.”
To solve this problem, Buildnet has developed an innovative solution a fully managed and serviced apartment model that removes the stress from the investor while guaranteeing higher returns. “Our new business model gives investors peace of mind. You invest, and we take care of everything from maintenance to finding occupants,” Semaganda said. “We guarantee a return on investment of up to 8.5%, with no stress for the buyer. You just receive money in your account every month.”
Semaganda underscored the uniqueness of the offer, explaining that, unlike previous off-plan purchases where the buyer managed the apartment, the new model comes with a guaranteed ROI, regardless of how the property performs. “In the past, we delivered apartments without any promises on returns. Now, we not only deliver the apartment, but we also guarantee a return,” he added.
Minister Namuganza lauded Buildnet’s approach, describing it as a model for transparency and investor confidence in the real estate sector. “This kind of innovation is what we need to restore public trust and make the industry attractive to both local and foreign investors,” she said.
Namuganza also reiterated the government’s commitment to strengthening the real estate sector through the development of the Real Estate Bill, which aims to regulate the industry, improve professionalism, and protect consumers. She highlighted the upcoming launch of a public digital online land portal as part of the Ministry’s efforts to enhance transparency in land transactions.
“The portal will allow Ugandans to access land title information for a small fee, bringing much-needed transparency to the sector,” she explained, adding that the government is also finalizing the Valuation Law to regulate property valuation standards.
Both Namuganza and Semaganda emphasized the importance of real estate to Uganda’s development, with Semaganda adding that the new Waterfront Hotel Apartments project would contribute significantly to Kampala’s housing needs.
“I thank all the buyers for their trust in Buildnet and encourage more Ugandans, especially those in the diaspora, to continue investing in real estate,” Semaganda said. “Our new model ensures that their investment is secure, stress-free, and profitable.”
The Waterfront Hotel Apartment Project is expected to transform Munyonyo’s skyline, providing modern, fully serviced apartments designed to meet the needs of a growing urban population.
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