Assessment of the effects of transport infrastructure upgrades on Real Estate growth in Kampala City.

Abstract

According to the Organisation for Economic Co-operation and Development OECD (2018) improvements to transport infrastructure refer to the enhancement or expansion of the transport network, e.g., roads, rail, and other public transit systems, to improve linkages, reduce commute time, and stimulate economic growth. Real estate development encompasses the growth of property development, value appreciation, and the growth of the market in the real estate sector. The interaction between improved transport infrastructure and property development is very important; improved transport systems are likely to provide higher accessibility, which increases the attractiveness of places for residential and business purposes, hence stimulating the real estate industry (Graystone, 2024). In urban settings, the improvement of transport infrastructure is regarded as a key force behind changes in land use, accessibility, and locational advantage, hence generating demand for land and property (Lu et al., 2021). Globally, the connection between the upgrade of transport infrastructure and land development is well-documented. In the UK, the High-Speed 2 (HS2) railway project has been behind a high increase in development planning proposals along new stations, including a 66% rise within 1.5 miles of the stations compared to a 15% rise immediately beyond this. These investments not only increase land prices but also spur new residential and commercial development along transport links (Michael, 2024). Similarly, in Ireland, the proposed MetroLink project in Dublin will increase house prices by at least 10% along zones around new stations, particularly suburban zones which were once considered peripheral (MetroLink Planning Report, 2024). In the USA, expansion of the Washington Metro's Silver Line has driven elevated levels of residential and commercial building in Northern Virginia. Formerly underdeveloped regions have been subject to construction booms, demonstrating the role of transport initiatives in transforming property markets (Barthel, 2023). All these instances assure that where public and private investment improves transport accessibility, real estate activity is triggered.