Real estate in Uganda is booming at a very high speed, but unfortunately its booming with the interest rates on finance which is dangerous because its one of the greatest pillars of the industry.
However if only investors research and learn about how to work in such an industry to earn money, then the industry would be the best venture for investment in Uganda just as it is in other countries.
Bellow are some reasons as to why Ugandan real estate investors lag behind;
Mismatch of experience.
Trusting Experienced employees from other professions and leaving out real estate graduates who have knowledge to innovate the poor systems in industry. Even though skills can help your company to maintain a given standard, knowledge will open up doors for creativity and innovativeness in your business. However much
Delays during construction.
This has made it difficult for Investors to pay back the mortgages in time. for example if an investor obtains a loan with a life of 10 years and the investment takes 2 years to finish then it means the investor is remaining with only 8 years to extract the money from the investment and take it back to the lender, it will become now become hard for the investor to market sell and get the money out of the investment in time. This has led to defaulting and foreclosure in the industry.
Poor management.
This has affected the flow of works in many construction projects in different companies here in Uganda. However if you chose a strategic management team, that's from the line managers to the top managers, the available resources in the company can be efficiently mobilized and effectively used ''{ What do I mean }'' Efficient and effective mobilization and use of resources, ''{and employees also being a resource(human resource)}'', can help to enable hard work, commitment, determination, communication, good attitude and motivation amongst the team, Because if you efficiently allocate resources it means that every section that contributes to a given process of production shall have enough resources required to achieve the final target of the process.
Unrealistic company policies.
This has caused many companies to loose trust from competent suppliers, whom should be facilitating the operations through enabling accessibility of materials as when and where they are needed. Truthfully if by your policies you can manage to satisfy the suppliers then you'll be able to manage the preferences of the customers because with a good relationship, the suppliers will be in position to advise you on the trending utility products like Tiles, Iron sheets, bars and many others. On top of suppliers, there comes the employees. My dear I don't think you will be comfortable having poison with in your body, having employees who are not comfortable and motivated is a crucial problem and this can give way for failure at implementation. if you don't put your employees in position where they can willingly stand and pursue a given goal then you have not done what's required of you.
Failure to embrace technology.
By 2023 every firm shall need to have an IT department. This will enable regular advancements in the technology applied in the organization's operations and tasks, and also this will allow the firm to easily cope up with technological changes which will be coming up in the industry.
These and many more factors have led to failure of real estate businesses in Uganda
