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Kampala’s Housing Costs Regarded Too Expensive in the World For Ugandans

Nestled in the heart of Uganda, Kampala is a vibrant city pulsating with economic growth and cultural richness. The burgeoning economy has propelled the nation forward, but behind the facade of prosperity lies a unique challenge faced by many Kampala residents – the soaring costs of housing. According to Numbeo’s latest report, Uganda’s Capital City now boasts the highest price-to-income ratio in the world at 79.4, painting a complex picture of economic success and real estate challenges.

The Price-to-Income Ratio

Numbeo’s price-to-income ratio is a crucial metric that reflects the affordability of housing for the average resident. It is calculated by comparing the current market value of a housing unit with the total yearly income of the household. In Kampala’s case, the staggering ratio of 79.4 indicates a substantial disparity between the cost of housing and the income levels of its residents.

Global Ranking

Kampala’s housing market dominance is underscored by its substantial lead over other global cities. Shanghai, China, comes in a distant second with a price-to-income ratio of 49.3, followed by Douala, Cameroon, at 47.1. This significant margin highlights the severity of the housing affordability crisis in Kampala.

Factors Contributing to the Surge

Several factors contribute to the astronomical rise in housing prices in Kampala. Rapid urbanization, a growing population, and increased demand for accommodation have placed immense pressure on the real estate market. Additionally, the city’s limited land availability and infrastructure challenges further exacerbate the housing crisis, pushing prices to unprecedented levels.

Uganda’s Economic Success

Intriguingly, Numbeo’s report stands in stark contrast to Uganda’s overall economic performance. Despite the housing affordability challenges, Uganda’s economy has been on an upward trajectory, evidenced by a notable decrease in the inflation rate from 10.4 in January to 2.4 in October. Each component of the Consumer Price Index has experienced a decline, reflecting a robust and stable economic environment.

The Impact on Residents

The high price-to-income ratio has tangible consequences for Kampala residents. The dream of owning a home is becoming increasingly elusive for many, with a significant portion of income dedicated to housing costs. This not only hampers personal financial growth but also raises concerns about social and economic inequality within the city.

Possible Solutions

Addressing Kampala’s housing crisis requires a multifaceted approach. Government intervention, urban planning reforms, and the promotion of affordable housing initiatives are crucial steps to alleviate the burden on residents. Collaborative efforts between public and private sectors can help create sustainable solutions to ensure that Kampala remains a prosperous and inclusive city for all its inhabitants.


Kampala’s status as the world’s most expensive housing market serves as a poignant reminder that economic success does not always translate to affordable living conditions for its residents. As Uganda continues to chart its path to prosperity, finding a balance between economic growth and housing affordability becomes imperative for the well-being of Kampala’s diverse population.


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