As the Ugandan economy continues developing, the house market will develop. Lots of the property sector investors however will most likely not need time to manage the properties themselves on a day to day basis. They will rely on property management firms increasingly. You ought to know that in Uganda, owing to the poor land tenure system, coupled with administrative corruption and inefficiencies, property purchase and structure is fraught with legal troubles. It isn’t uncommon for individuals to obtain unlawful planning permits for construction of properties in say gazetted zones like wetlands and forest reserves.
Subsequently rectifying this irregularity has often resulted in long slow legal processes and the dog owner and thus the property manager often lose income through the non occupancy of the disputed property. Property management companies like any other businesses need to exhibit a high amount of integrity for clients to handover the properties.
In Uganda there were some high-profile courtroom cases regarding property managers, including one of a leading property management firm whose controlling director conned a potential purchaser of advance monies paid. There is a significant reputation loss. 3. The house market bubble. Whilst the global credit crisis continues depressing property values in places such as the USA and the united kingdom, In Uganda this isn’t being felt for a myriad of reasons particularly.
In the residential sector due to a general shortage of housing there is always demand for property and as such the property values continue steadily to rise. The main risk of the house bubble in Uganda would arise from politics instability which would lead to collapse of the sector. At the top end of the marketplace are international property management company affiliate marketers like Knight Frank.
In addition there are ISO authorized companies like Amalgamated Property Consultants (APS) as well as large and reputable property management companies such as Crane Management services which is under the Ruparelia Band of companies. At the low end of the marketplace are property agents who also dual as property managers for their clients.
These typically cater for low-income earners’ housing. A company that is an franchise or affiliate holder of an international property management company. In Uganda, as much as i know, international property management companies like CBRE and Colliers have no local representation except for Knight Frank. There is certainly therefore an opportunity for the investor to ensure that their firm gets affiliation to these international firms.