Evaluating the concept of selling housing development off-the-plan as a form of property financing in Kampala-Uganda

Abstract

Uganda’s residential real estate market has posted positive growth towards improvement of the economy at large however, there are some constraints that are hindering further property development which include high construction and financing cost which limit growth in the sector hence increased housing deficits, this propels developers to seek alternative means of financing their housing developments among which include selling their housing projects off-the-plan (before completion). In Uganda, the concept of selling housing developments off-the-plan is also coming up and being adopted by property developers. This research study aimed at evaluating the concept of selling housing developments off-the-plan as a form of property financing in Uganda. Specifically, the study set out to establish how the concept of selling off-plan properties is applied in Uganda, assess the challenges of selling existing off-plan properties in Kampala, and to provide remedies to the challenges encountered during selling off plan properties in Kampala. The study employed a cross-sectional survey approach with the case study area of Kampala. The samples were purposively selected and primary data was collected through questionnaires and interviews, results were thus analysed by using Microsoft Excel. The study’s findings reveal that although the concept of selling housing developments off-the-plan is still new on the property market of Kampala, it is relatively growing and being appreciated by developers and marketers of real estate properties. The study also further reveals that although the concept is being adopted on the property market of Kampala, it is not without challenges especially buyers’ preference to deal with large established property developers. Conclusions were thus drawn that based on the study findings, and in relation to the literature reviewed, the prospects of the growth of concept of selling housing developments off-the-plan/before completion on the Ugandan property market are very promising. This research therefore recommended that substantial effort should be expended in sensitizing the public on the advantages of off-plan properties, property developers should construct similar developments for middle and low income earners.