Analyzing the contribution of dead capital transformation to the property market in Kampala. (a case study of Kampala central division)

Abstract

Dead capital transformation is a strategy that is aimed to boost the property market by unlocking property (land and any other property on land) which is informally held, is not legally recognized and it can hardly be transacted in the property market since it exposes both investors and buyers to a high risk, hence they are excluded from the formal economy. Five (5) categories of stakeholders in the real estate industry participated which include; real estate agents, property developers, property owners, financial institution representatives (from the mortgage department of commercial banks), and government officials (MLHUD from the department of land registration and KCCA in charge of urban development) were studied. The study sought to analyze the contribution of dead capital transformation to the property market in Kampala Central Division. A purposive approach was used to collect primary data using structured questionnaires, where a total of 86 participants responded, data was analyzed using Microsoft excel and descriptive statistics were used to represent results. Findings indicate that dead capital is significant in the property market, dead capital transformation can positively impact the property market, policy interventions and reforms are needed to address barriers to dead capital transformation, involvement of multiple stakeholders is crucial, formalizing property rights and improving land governance are required. It highlights the need for policy interventions, stakeholder involvement, and reforms to address barriers and promote formalization of property rights. This can unlock economic potential, stimulate investment, and foster a transparent and efficient property market. Finally, the study recommended to expand research to other divisions in Kampala or other cities in Uganda to determine if the findings are consistent across different areas and also to consider the social and environmental impacts of dead capital transformation.