Kampala, Uganda | By Michael Wandati | Kampala, Uganda’s bustling economic and cultural hub, grapples with a distinct challenge amid its prosperity — soaring housing costs. The demand for accommodation in the city is on the rise, turning the dream of homeownership into an increasingly expensive pursuit.
The real estate landscape in Kampala has witnessed a significant price surge, as highlighted by Numbeo’s price-to-income ratio. This metric positions Kampala as the world’s most expensive city for housing.
Numbeo’s calculation involves the ratio of median apartment prices to median familial disposable income, expressed in years of income.
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With a staggering price-to-income ratio of 79.4, Kampala leads the global ranking, surpassing other cities like Shanghai, China (49.3), and Douala, Cameroon (47.1).
Notably, no other African region, except for Douala and Addis Ababa with an index of 40.2, records a price-to-income ratio exceeding 40. Top African cities exhibit indexes ranging from 25.9 to 1.8.
Despite this housing challenge, Uganda’s overall economic performance remains robust, with a notable drop in the inflation rate from 10.4 in January to 2.4 in October, reflecting positive trends across the Consumer Price Index components.