The Viability of the Student Accommodation Real Estate Investment Trusts [REITS] in Uganda. A comparative study between Uganda and Kenya

Abstract

A REIT (Real Estate Investment Trust) is a real estate firm that acquires, constructs, or manages different types of buildings that are put up in various locations. REITs are a form of financing instruments from firms that source funds to build or acquire real estate assets, which they sell or rent to generate income for the investors who invested their funds in the firm. The income that is generated by the firm over the period is then distributed to the shareholders at the end of the financial year. The student accommodation REITs, a subset of the larger REITs market, focus on providing housing solutions for students, addressing the growing demand for purposebuilt accommodation as well as the financing deficit amongst investors and developers. The study focuses on the efficacy of student accommodation REITs in Uganda and analyzes the comparison with Kenya. Employing a qualitative approach, the study analyzes the student accommodation market’s current level of student accommodation demand, Uganda’s regulatory framework, and the comparison of student accommodation REITs’ feasibility between Uganda and Kenya. The study collects and compiles secondary data from authoritative sources such as university case studies, industry report analyses, and peer-reviewed articles. This research adds value to the existing body of literature by providing some understanding of the student accommodation market in Uganda and Kenya in relation to the effectiveness of the student accommodation REITs and areas where their effectiveness can be improved. Also, despite having REIT regulations by the CMA in Uganda, one finds there are no licensed and registered student accommodation REITs in the country, thus the argument is made proposing a conclusion that advancing the case for investment in student accommodation REITs in Uganda is feasible but complex regarding the environment and market perspectives, legislative environment, and even education system within the country while the level of knowledge of the real estate market is deemed necessary for investors and developers alike.