FAMReports News Desk | February 2026
Uganda’s Real Estate market has experienced notable growth in recent years. Driven by urban migration, demand for housing and commercial space, and rising interest from local and foreign investors, developments across Kampala and its surrounding districts are accelerating. Despite this growth, sector insiders and some government officials warn that the absence of a clearly enforced regulatory framework poses serious risks to the future growth and stability of the industry.
Expansion amid uncertainty
The boom in real estate is visible in many forms: new residential neighbourhoods, mixed‑use developments, and rising construction in peri‑urban zones. Observers attribute this surge partly to Uganda’s growing urban population and a persistent housing deficit that continues to drive demand for both affordable and up‑market housing.
At the same time, commercial and rental property demand remain strong as businesses and individuals seek more space. Real estate thus plays a significant role in national economic growth, with some developers and economists pointing to its role in job creation and infrastructure expansion.
Also Read: Five Skills Young Professionals Can Master to Boost Income in 2026
However, the rapid expansion has largely unfolded under a regulatory vacuum. For decades, industry actors have operated without mandatory licensing, standardized oversight or a unifying legal framework. As a result, many transactions are informal, documentation is inconsistent, and data on land use, ownership and development remain scattered.
Governance vacuum and its consequences
For years, the sector has lacked a comprehensive law to regulate brokers, developers and agents. The proposed Real Estate Agency Bill 2020 — intended to establish licensing requirements and regulate real estate practice — remains unapproved. According to the Association of Real Estate Agents Uganda (AREA), the delay continues to stall much‑needed reforms. “You cannot develop without following certain rules and you cannot practice without being licensed,” stated AREA’s president when making the case for approval.
The result is a sector marked by informality. Many brokers work without oversight, and unscrupulous practices such as under‑declaration of property values, off‑book sales or unregulated subdivisions have become common. A 2023 risk assessment by the Financial Intelligence Authority Uganda (FIA) warned that the unregulated nature of the real estate sector creates vulnerabilities for money laundering and financial crimes.
Meanwhile, tax authorities have flagged rampant tax evasion in the sector. According to the Uganda Revenue Authority (URA), some developers deliberately undervalue property transactions, with properties sold for hundreds of millions of shillings declared at far lower values. Such practices rob government coffers of much‑needed revenue for public services and infrastructure.
Expert warnings about investor confidence and market sustainability
Industry leaders warn that without regulation, investor confidence may falter, threatening long‑term sustainability. AREA officials argue that the unpredictability and lack of transparency in transactions deter serious investment. “There is a major gap in terms of data, formal regulation and transparency in the sector,” AREA’s president said, underscoring that these deficiencies hamper the development of a professional and competitive real estate industry.
Likewise, the Ministry of Lands, Housing and Urban Development (MLHUD) has acknowledged the need for a professionalised sector. In recent stakeholder consultations on a draft bill, the Sam Mayanja, the state minister responsible, called for agents to be licensed and regulated so that buyers can transact with confidence and so that land conflicts and fraud are curbed. “They should have a professional body which can discipline them such that people can finally have trust in them,” he said.
What is at stake: risk to homeowners, investors and the economy
Without regulation and enforcement, the real estate boom could yield unintended negative consequences. Among them:
Continued informal transactions and under‑declared sales that encourage tax evasion and drain public funding.
Risk of land disputes, title conflicts and fraudulent deals that exploit buyers, especially first-time homeowners.
Lack of planning standards, leading to uncoordinated developments, inadequate infrastructure, poor urban planning and substandard housing.
Reduced investor confidence, both domestic and international, limiting potential for stable long‑term investment.
Potential for money laundering and other illicit financial flows that undermine financial integrity.
The path forward: need for law, oversight and transparent practice
For Uganda to realise the full potential of its real estate sector — to meet housing demand, attract responsible investment, create jobs, and support sustainable urban growth — a multi‑pronged approach is needed:
Emergence and finalisation of the Real Estate Agency Bill to provide a legal anchor for regulation, licensing and oversight of agents, brokers and developers.
Recommended: How Uganda’s TVET Reforms Are Reshaping the Future of Work
Strengthening systems for transparent land titles, registrations and transactions. The state should prioritise digitisation and centralised registries to reduce fraud and informality.
Enforcement of tax compliance for property sales and rentals, including robust auditing mechanisms through agencies such as URA.
Encouraging professional conduct and accreditation of real estate agents, supported perhaps by industry‑led bodies under formal regulation.
Implementing zoning, urban planning and building standards to ensure orderly development rather than ad‑hoc construction.
Without such reforms, the current real estate growth may amount to little more than speculative expansion — vulnerable to collapse, disputes and unsustainable practices. With regulation, oversight and investor protection, Uganda could build a healthy, dynamic sector that supports national development and housing access for its growing population.
Trusted Stories. Informed Voices. Impactful Reporting.
www.famreports.com
info@famreports.com
@FAMMediaGroup
