Assessing the potential of condominium housing as an approach to addressing urban housing deficits; a case study of Kampala, Uganda.

Abstract

With rapid urbanisation and growing urban populations, demand for housing continues to exceed supply, resulting in urban housing deficits which pose a severe challenge in fast-growing cities across Sub-Saharan Africa, including Kampala, Uganda. Governments and urban authorities around the world are exploring innovative housing solutions such as condominium housing, to meet the rising urban housing deficits. This study evaluated the potential of condominium housing as a strategic approach to addressing this housing challenge in Kampala City. It examined factors that influence demand and supply of condominiums in Kampala, assessed the adequacy of the regulatory framework governing condominiums in Uganda, and examined the challenges and best practices for condominium housing uptake. A mixed-methods approach was used. Both quantitative and qualitative data were collected from a total of 177 respondents (115 condominium owners, 28 developers, 27 officials at Kampala City Council Authority, KCCA and seven (7) key informants from various organisations like National Housing Construction Company, NHCC, Association of Real Estate Agents of Uganda, AREA-U, and Kalikumutima & Co. Advocates). The study established that condominiums hold a great potential to addressing Kampala’s housing deficits if adequately supported with regulatory, financial, and institutional frameworks. Specifically, the study revealed that proximity to urban facilities, sense of security, and availability of amenities are the key factors influencing demand for condominiums in Kampala while availability of infrastructure and services, cost of construction materials, market demand for condominium units, and supportive government policies, emerged as key factors influencing supply of condominiums in Kampala. Conversely, the study revealed that although a a strong legal framework exists comprising the Condominium Property Act, 2001, together with its subsequent regulations of 2002 (as amended), its implementation and enforcement remain constrained by persistent challenges, including lengthy registration and approval processes, weak enforcement mechanisms, and limited popularity of the law among key stakeholders in the condominium housing market. Strengthening public-private partnerships, adoption of innovative financial instruments like Real Estate Investment Trusts (REITs), as well as promoting focused awareness and sensitization campaigns emerged as the best practices for enhancing the uptake of condominium housing in Uganda.