Property sector needs movement

A lack of sizeable transactions has crippled the country’s property sector, the Estate Agency Council has said.

Despite the slump, the demand for housing is high and individuals are still building.
Despite the slump, the demand for housing is high and individuals are still building.

In an interview last week, EAC chairperson, Oswald Nyakunika, said: “We have realised that the failure by businesses to buy properties due to low capacity utilization is impacting negatively on the sector.”

He added that it was unfortunate that there were no meaningful property purchases that had led to many businesses closing down.

“Players in the property business are struggling to pay their rent. This has seen many industries operating below capacity and others eventually closing down,” he said. “There have been some reductions in major property deals because of the liquidity crisis. The majority of sales are now by deed of sale or instalments. There is no money for developments or refurbishment as the economy battles to come out of this cash crisis.”

However, he said that the demand for shelter remained high and individuals were continuing to build properties.

“All that is required is servicing of stands by councils or local government in conjunction with the private sector,” he said.

Post published in: News

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