Companies in Kampala are increasingly looking beyond the city for industrial land, with a notable rise in demand observed during the latter half of 2023, according to a report by Knight Frank. Industries spanning automotive, manufacturing, interior design, pest control, pharmaceutical, and beverages are driving this shift, prompting a preference for suburban areas like Bweyogerere, Namanve, and Kawempe over traditional industrial zones.
| Company Activities | Preferred Industrial Areas |
|---|---|
| Automotive | Bweyogerere, Namanve |
| Manufacturing | Namanve, Kawempe |
| Interior Design | Bweyogerere, Kawempe |
| Pest Control | Bweyogerere, Namanve |
| Pharmaceutical | Namanve, Kawempe |
| Beverages | Bweyogerere, Namanve |
Infrastructure improvements in these suburban areas have facilitated access to major trade routes, connecting manufacturers more efficiently to export and import markets. The report also highlights a stagnation in the real estate sector during the latter part of 2023, as businesses opt for more affordable suburban rental spaces instead of traditional areas in Kampala.
| Size of Industrial Space | Demand Level |
|---|---|
| 300 – 1,000 sqm | High |
| Above 1,000 sqm | Decline |
The trend towards owner occupancy has increased, as companies show a preference for operational control, long-term growth plans, and available capital. Despite this, caution is exercised when buying industrial land or warehouse spaces.
| Rental Rates (per sqm) | Warehouse Spaces |
|---|---|
| $3 (Shs11,428) – $7 (Shs26,665) | Stable |
Construction activities are observed in various industrial areas, including Mulwana Road, Enterprise Park in Nakawa-Mbuya, Namanve, Nalukolongo, and Luzira. The report estimates that over 40,000 sqm of warehouse space will be available for rent or sale in 2024, driven by government investments in industrial parks and infrastructure projects.
