48,700 housing units needed annually to address deficit-report
A new report by the ministry of lands, housing & urban development has revealed that Uganda’s urban population is projected to grow from 11 million in 2022 to 20 million in 2035.
The report titled “State of Urban Sector Report” further reveals that with an estimated deficit of 2.4 million housing units, the country needs to produce over 48,700 units annually to fill the gap.
The report shows that, year-on-year contribution of the housing sector to Gross Fixed Capital Formation hovers about 1.6percent which represents 0.003percent of GDP.
The state minister for housing Persis Namuganza says this performance reveals stagnation in expenditure on dwellings which is associated with the type and quality of the housing sector.
She adds that a large majority of the population in Kampala – the capital city (72percent), live in rented housing units, with a preference for one-bedroom units. Only 22percent of the residents own their houses.
The city has a high percentage of slum areas, with 60percent of the population living in such areas.
She says the 11 cities have a combined population of over 6.8 million people living in slum dwellings. The most common type of housing in Kampala is the ‘muzigo’, which is a substandard single-store building. Renting such a housing unit costs an average of Shs150,000 (USD40), which translates to 30percent of the gross monthly household income.
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