Real estate development, land tenure and land value dynamics in the Peri-urban areas of Greater Kampala City

Abstract

Real Estate Development is relatively a new investment opportunity that has enabled people to purchase plots of land and construct homes in peri-urban areas of Kampala. This study is an attempt to examine the impact of Real Estate Developments on land value dynamics and physical planning in the peri-urban areas of Kampala District. Four Real Estates of Kirinya, Kakunguru, Lubowa and Naalya were studied. Specifically, the study sought to establish the extent to which Real Estate Development has influenced land values, which land tenure system attracts more Real Estate Development, how far Real Estate Development conforms to the physical planning guidelines and principles and, how Real Estate Development has facilitated the distribution of social services in the study area. Primary data were collected using a structured questionnaire and interview guide. Field observations and secondary data supplemented interviews. A total sample of 93 respondents including estate residents, officials of NHCC and Arkright projects limited and local leaders were consulted. Data collected was analysed by using the Statistical Package for the Social Science (SPSS). Descriptive statistics were used in the analysis.

Research findings indicate that Real Estate Developments have influenced land values in the areas within and around the estates due to the services and facilities which are extended nearer to the plots. However, this increased the cost of land, which the poor could not afford to buy. Real Estate Developments were found to be on mailo land due to the freedom and security of ownership it guaranteed the owner as compared to the leasehold whose ownership is un certain and the annual premium charges which increase the cost of land in the long run. To a small extent, real estates followed physical planning guidelines as evidenced from the master plan or design layouts, however, it was noted that some people did not know anything about physical planning and equated physical planning master plans to site layouts of building plans. This indicates how physical planning was still unknown by the people, hence the need for community sensitisation.

Finally, the study recommended community sensitisation to improve awareness on planning, government intervention in land markets to control the sky rocketing prices, prior planning by the concerned local authorities before the establishment of the estates, consideration of the low income groups when establishing the estates, close monitoring and supervision of the estates operation to ensure that the prepared master plans are being followed and the promotion of public private partnership to improve services delivery.