High Land Demand Boosts Real Estates Business

22 Nov 2010 17:10

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The mad dash for land in Kabarole has boosted the real estate business. People from as far as Kampala, Mbarara, Masaka and Bushenyi are rushing to buy land in the municipality and its outskirts to construct commercial premises.

The high demand for the land has given a boost to local real estate dealers. For the past four months, five real estate agencies have opened shop in Fort Portal. They are SWAAP real estate dealers, Twebaze estate dealers and His grace estate dealers.

The land is commonly purchased in Kagote, Kitumba, Rwengoma and Bukwali. These places are near the town and recently the municipal council passed a resolution that areas in the outskirts of the municipality should be utilized because of the congestion in the central business district.

In the past six months, the cost of a plot of land has shot up from 30 million shillings to 45 million shillings. David Tumwine, a resident of Bushenyi says that he decided to purchase land in Fort Portal because it is in the middle of Kyenjojo, Kamwenge, Kasese and Bundibugyo districts.

Tumwine who purchased land at Bukwali also says that the town is a destination for many tourists, which explains why he plans to construct a guest house on his land.

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Tumwine however says that it was challenging to acquire a piece of land because the owners had increased its price. He says that he was forced to fork out a huge amount of money because he was in desperate need of the land.

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Unlike people who are purchasing land to construct houses and business premises, Geoffrey Kaliisa, who hails from Mubende district, says that he purchased land because he plans to resell the same piece of land when its value shoots up.

Ronald Kugonza, the proprietor of Twebaze real estates dealers in Fort Portal town says that the company receives four clients everyday who want to purchase land.

However Kugonza says that buyers want to purchase land in the centre of the town but it is either scarce or expensive. He also says that owners of the land take advantage of its demand and increase the prices.