Weak Ugx brings some apprehension in Uganda Construction sector due to sharp increase in construction materials which is mostly imported.
The situation is so bad that some real estate firms like Jomayi Property
www.jomayi.co.ug has put on hold, building new houses except the ones under construction.
Sample This:-
The shocks have been felt throughout the housing sector. Rents are rising, even as houses grow scarce, with completion slowed down by costs. Some real estate dealers have been forced to scale down. Jomayi Property Consultants, a major real estate company, has suspended construction to deal only in land - whose prices had increased only slightly and remained affordable - until costs of materials reduce.
Jomayi Marketing Manager, Betty Sanyu, told The Independent that construction costs had risen abnormally and customers thought they were being cheated. “We decided to stop construction for a while and first see how the economy stabilizes,” Sanyu said. “With the price of a bag of cement increasing by almost Shs 10,000, we hiked prices to cover the costs for our customers would think we were cheating them.” Akright projects
www.akright.biz is considering pricing their plots and houses in US Dollars for the sake of price stability. That will be the first of its kind in middle income housing units and it will make it more unaffordable to an average Ugandan. How will it feel like to earn in UGX and buy plots or property in USD ? That was only heard of in very high income areas like Kololo in Kampala or Karen or Gigiri in Nairobi.
This unfortunate situation is already happening in Ghana where you buy plots in dollars and that translates to paying rents in USD in your native soil !!!
www.redrowghana.com The people that will suffer this drain are the citizens the Ugandans as it will become a tall dream to get a plot talk less of a house.
The beneficiaries are the foreigners.
I pray that it does not happen in Kampala, as I really feel for poor Ghananians already suffering from this problem , I really do.
This is a far cry from what is happening in my country Nigeria where real estate deals are conducted in the local currency Naira.
Read Further :-
http://www.busiweek.com/10/page.php?aid=23
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