A Knight Frank report indicates that Uganda registered an increase in demand for industrial spaces in the first half of the 2023/24 financial year due to business growth and an improved economic outlook.
In details contained in the Africa Report 2024/25, a guide to real estate market performance and opportunities across the continent, Knight Frank indicates that the demand was largely driven by increased investment in agro-processing, energy, construction, cold storage, and technology.
The growth is also premised on expansion in gross domestic product, expected to reach 6 percent during the 2023/24 financial year, up from 5.2 percent in the previous financial year.
The report further notes that rent for industrial spaces remained stable, costing between $3 (Shs11,128) and $7 (Shs25,967) per square metres, depending on size and location, while spaces ranging between 300 and 1,000 square metres rose, driven by businesses connected to automotive, manufacturing, interior design, pest control, pharmaceuticals, and beverages.
The increase in demand has, however, been mitigated by government’s creation of more Special Economic Zones that continue to attract new occupiers.
