July 2021 Performance Review H1 2021 KampalaMarket Economic Overview Economic Lugogo One: Modern Prime Condoinium Office Space PrimeCondoinium One:Modern Lugogo Available for Saleand Rent. 1 Real Overview Estate 2 Outlook 3

knightfrank.ug/research Introduction

Key Insights The economy in general and the real estate Figure 1: GDP Contribution by Sector

sector specifically, remained subdued over the 70,000 7.0% past one and a half years due to the lockdown 60,000 6.0% 50,000 5.0% Annual Headline Inflation rose to 2% in June 2021 restrictions that affected different sectors of 40,000 4.0% the economy. In the previous property market 30,000 3.0% Bank of reduced the Central Bank Rate to 6.5% in June 2021 report (H2-2020), the outlook for 2021 pointed Billion Shillings 20,000 2.0% % Contribution to GDP remaining below expected levels, as 10,000 1.0% The prime office market registered a 3% y-o-y drop in occupancy 0 0.0% per the State of the Economy 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Report for December 2020, coupled with Increase in demand for showroom space within the city center Year continued subdued performance of the real Agriculture, forestry and fishing Industry estate sector, with investors adopting a wait and Prime residential rents remained relatively stable Services Taxes on Products see approach to the outcome of the February Constant Price growth rates (%) Metroplex Mall’s phased opening commenced 2021 general election.

Hope for improvement in performance was Source: UBOS Lugogo House. Space available to let. hinged on several factors among which included; vaccine acquisition and rollout, The services sector accounted for the highest sites. This provides hope for a quicker return to monetary and fiscal policy stimuli, relaxation contribution to GDP at 41.5% despite its normalcy, although the failure of many African of curfew and other restrictions, and increase in declining share contribution when compared to governments, Uganda inclusive to secure the return of expatriate numbers. the 42.8% recorded in financial year 2019/2020. required doses due to global shortages, coupled ECONOMIC OVERVIEW The Industrial sector contributed 27.4%, the with the mutation of the virus into other The debate as to whether 2021 would be a Agricultural sector contributed 23.7% while the variants such as the Delta and Delta plus which year of recovery from the total disruption and taxes on products contributed 7.3%. are resistant to some vaccines has presented destabilization faced in 2020 has been put to major challenges to this end. sleep with the current lock down which has Table 1: Trends which the Knight Frank H2 2020 report highlighted for H1 2021. As of 30th June 2021, the country had recorded dampened any hope of recovery and stifled the COVID-19 82,082 cases, 1,111 deaths and 861,645 people Outlook Comment little momentum that had been gained. had been vaccinated. Approximately 41% of Subdued performance of the office leasing market, attributed Q1 2021 started off at a rather slow pace, with a reduction in the number of the total cases and 66% of total deaths were In May 2021, the economy was hit by a to the uncertainties that surrounded the general elections and inquiries and interest in occupier services. This was to be expected given General Economic recorded in June 2021. impact of the lockdown in 2020 that most businesses were more focussed on stabilising cash flows than second wave of the COVID-19 pandemic. The rolling out expansion plans. Performance Ministry of Health (MOH) recorded a surge in the number of COVID-19 cases, reporting a Continued emphasis on health and safety especially in the Throughout the prime office and retail asset classes, OH&S protocols daily average of 1,114 cases in June 2021. This office and retail asset classes. became a heightened priority for most landlords and occupiers alike. Preliminary annual GDP statistics released Some of these included, safety signage, hand sanitisers, temperature by UBOS in May 2021 indicated that the necessitated various interventions by the guns, increased and improved cleaning frequencies and masking, which performance of the general economy was on government to curb the spread of the virus underpinned office re-occupancy protocols in 2021. a slow but positive trajectory as compared to which included initial closure of schools and earlier projections. GDP had grown by 3.3% in ban on inter-district movements for a period of As of 30th June 2021, the Technology to continue playing a vital role as a means to With the office as a focal point, key in collaboration, training and cohesion FY 2020/2021 as compared to earlier projections 42 days effective 7th June 2021. However, due facilitate workflows, and reduce physical contact. of teams, technology was a great facilitator of workflow processes in H1 country had recorded of 3.1%. This was attributed to improvement to the persistent increase in daily new cases, 2020, through virtual communication platforms like zoom, teams, google 82,082 cases, 1,111 deaths in general economic activity and aggregate the government reinstated a second national meet, etc. demand as a result of the ease of restrictions lockdown for a duration of 42 days from 19th and 861,645 people had imposed in March 2020 due to the pandemic. June 2021 to limit mobility and control the Some big corporate organisations have taken the decision to permanently been vaccinated spread of the virus. Other lockdown measures reduce the headcount in office at any one time for the foreseeable future. instituted included closure of schools and Landlords to be less accommodating of any more requests for Landlords continued to face requests for rent reductions and delay in institutions of higher learning, restrictions on further rebates. escalations from prospective and existing tenants. These however did not The economy in general public gatherings, sports activities, funerals, materialise for many considering that several landlords had already offered remains subdued due to weddings, a ban on public and private discounts to their tenants during and after the March 2020 lockdown. We transportation, and suspension of weekly non- are still seeing a continued reluctance from landlords to these demands, the lockdown restrictions food markets. It is yet to be seen how effective current lockdown notwithstanding. Instead, negotiated rent payment plans that affected different the measures will be. are becoming the compromised position for both parties. sectors of the economy. Working from home and in shifts to continue to complement As employers and organisations worked to establish and refine workplace The surging number of COVID-19 cases resulted the office, as opposed to taking a binary decision on the strategies that favoured their employee’s welfare, working from home and in increased turnup for Covid-19 vaccinations matter. in shifts continued to complement working from the office in H1 2021. by the population at the different vaccination Inflation forms of debt restructuring covered in existing Regulations; postponement of prepayment of arrears as a condition for restructuring a credit Figure 2: Uganda Covid-19 Cases Figure 5: Exchange Rates The annual headline inflation for the year facility for 12 months with effect from April 01, 3800 2 ended June 2021 increased to 2% as compared 2020. 2000 3750 1 to the 1.9% recorded for the year ended May 3700 0 1800 -1 2021. The rise was attributed to an increase 3650 1600 -2 Exchange Rates 3600 % in the annual food and other nonalcoholic -3 1400 3550 -4

beverages inflation to -1.6% from -3.5% recorded Period Average 3500 1200 The Uganda Shilling appreciated by 0.35% in -5 in May 2020, coupled with an increase in annual 3450 -6 June 2021 against the USD to an average of 3540 1000 inflation for, ‘Housing, Water, Electricity, Gas 3400 -7 800 as compared to 3553 recorded in May 2021. On and Other Fuels’. Jul-20 Jan-21 an annual basis, the Uganda shilling recorded Jun-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Number of covid Cases 600 Annual core inflation for the year ended June an average appreciation of 3.1% in H1-2021. This Period 400 2021 decreased to 2.7% from 3.1% recorded for was attributed to increased foreign exchange 200 the year ended May 2021, majorly driven by a Period Average Annual appreciation/depreciation rate inflows from offshore investments, the exports 0 reduction in annual service inflation which Monthly appreciation/depreciation rate sector, and non-financial institutions amidst 01/03/2021 01/04/2021 01/05/2021 01/06/2021 decreased to 5.3% for the year ended June 2021 demand from oil, manufacturing and telecom Period Source: Knight Frank Source: Ministry of Health from 6.7% recorded in the year ended May 2021. sectors. Money Market Spotlight on regulatory challenges, by providing secure Different businesses and corporate colocation space of up to 400 racks that will Figure 3: Annual Inflation Developments The increasing COVID-19 induced uncertainties Emerging Markets: organisations have been known to have house servers, networking devices and cables which are likely to slow economic recovery Data Centers individual servers (on site datacenters) where while providing 1.5MW of IT power to ensure 4.5 113.5 prompted Bank of Uganda to reduce the central they store, process and share their company the equipment housed within it operate 4.0 113.0 bank rate by 50 basis points from 7% reported information. These have proved to be quite optimally. 3.5 112.5 3.0 since June 2020, to a record low of 6.5% for The technology sector has experienced expensive in terms of set up and maintenance 112.0 2.5 June 2021. This was aimed at keeping the tremendous growth over the years, as opposed to third party data centers that It is anticipated that the data center will 111.5 2.0 provide the option to rent out capacity, allow help drive economic growth and digital 111.0 monetary conditions flexible, to hedge against necessitating digital infrastructure to 1.5 110.5 uncertainties and risks surrounding growth networks to interconnect and exchange data transformation through providing technology 1.0 accommodate different critical applications, big 0.5 110.0 and inflation that would slow down economic data and ensure faster speeds for users. With hence, ensuring cheaper, faster and more infrastructure that will attract opportunities for 0.0 109.5 recovery and delay return to normalcy. African countries comprising a large proportion reliable internet. colocation both locally and internationally. Lending rates for shilling denominated loans of the growing global internet market, the need The increase in data generation in Africa, Factors such as government support boosting Jun-20 Jul-20 Oct-20 Aug-20 Sep-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 declined by 0.7% to an average of 18.1% in April for facilities to accommodate technological coupled with the need to ensure Africa’s the digital economy and increased investment Headline Index: (Base: 2019/17 = 100) Headline: (Base 2016/17 = 100) 2021, as compared to 18.8% recorded in March hardware and software and reduce latency internet traffic stays within the region has in fibre connectivity e.g. Liquid Telecom, Core: (Base: 2016/17 = 100) 2021, reflecting the continued accommodative has risen, hence the increased interest in data become a major point of discussion, driving Africa’s largest independent fibre network, Source: Bank of Uganda monetary policy. centers. demand for fast and reliable processing among others are likely to boost growth of the Yields edged downwards for the 91, 182 and computer infrastructure. Africa data centre market. 364-day tenors being recorded at 7.0%, 9.3% A data center is a facility that accommodates Raxio Group plans to establish 12 carrier- and 10.1% respectively for June 2021 from 7.1%, and centralises different IT operations and As a result, Raxio Group opened its first neutral facilities across Africa in a three years’ 9.9% and 11.1% recorded in May 2021. This was networking infrastructure for the purposes of enterprise grade data center in the timeframe with the aim of driving economic Figure 4: The Money Market attributed to the low central bank rate, and storing, processing, and disseminating data and Industrial Business Park in May 2021, with the growth, social development, and digital increasing investor confidence following the applications. aim of supporting industries that are facing transformation throughout Africa. 25.00 concluded national elections. increasingly complex and unique IT and

20.00

15.00 In order to cushion the economy from the effects of COVID-19 and moderate the rise

% Rates 10.00 of non-performing loans, Bank of Uganda 5.00 approved requests from Supervised Financial 0.00 Institutions, and granted them delegated

Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Jan-21 Feb-21 Mar-21 Apr-21 Jun-21 authority to handle a third restructure of Dec-20 May-21

Period credit facilities to their customers faced with exceptional circumstances due to COVID-19. Central Bank Rate 91-day Treasury Bill Yield 182-Day Treasury Bill Credit relief measures to mitigate adverse 364-day Treasury Bill Yield Leandng Rate effects of COVID-19, issued on 14th April 2020

Source: Bank of Uganda included; repayment holidays for a maximum of 12 months, loan tenor extensions, and any other Raxio: Uganda’s first enterprise grade data centre after the March 2020 lockdown. However, in in H1 and H2 2020, in an effort to maintain were recorded at 70%. Prime rents for 2 bed a bid to prevent a further drop in occupancy, occupancy rates. Prime residential occupancy apartments maintained relative stability as some considerations were made by a few rates reduced by 2% in H1-2021 as compared shown in Fig. 7. landlords. to the same period in 2020 when occupancies REAL ESTATE OVERVIEW All things taken into consideration, current lockdown situation inclusive, our outlook is resulted in a marked increase in inquiries largely adopted in several organizations due Office Market that prime rents will remain stable depending Figure 8: Average rents for 2 and 3 bed apartments in Kampala’s prime across asset classes (office, residential and to the inability to contain all staff members at residential suburbs on the bargaining strength of each tenant, as industrial space), largely driven by the oil and once while adhering to set SOPs. The start of 2021 came with optimism not just landlords strive to maintain their occupancies gas sector and private consultancy firms with for the general economy but the office property resulting from relocations and downsizing. This 3000 80% space requirements in the range of 150 -1,500 Knight Frank registered a 3% drop in occupancy market in particular. With slow performance will be further supported by the increase in oil 2500 square meters. of Grade A/AB office buildings from 84% in 75% recorded in 2020, projections indicated a slow and gas activity which is slowly reviving activity 2000 H1 2020 to 81% in H1 2021. This decline was 1500 70% but steady recovery, especially with a pick-up in the various asset classes and sectors of the Downsizing, merging and relocation to owner attributed to downsizing of space requirements, 1000 Av. Monthly Rent ($) in leasing activity after the ease of lockdown economy. Occupancy (%) occupied premises was a major aspect that relocation, increased supply of prime office 65% 500 restrictions in June 2020. carried on in H1-2021. A return to relative space and working from home. 0 60% With the development pipeline consisting of normalcy in terms of inquiries which had been June 2019 June 2020 June 2021 Q1 2021 started off at a rather slow pace as projects such as the Pension Towers, Twed observed in Q2-2021 was affected by the 42-day The addition of approximately 6,000 sqm. Period compared to Q1 2020, with a reduction in the Heights, IGG Building, NDA Laboratory national lockdown announced on 18th June of Grade A lettable space onto the market number of inquiries and interest in office Tower and the The Pearl Business Park, we 2021. in H1 2021 increased the amount of stock Average Rental 2 Bedrooms Average Rental 3 Bedrooms Average Occupancy space for rent, until March when the sector estimate that approximately 130,000 square This came at a time when several organisations hence occupancy rates in the first half of the started to slowly pick up. The signing of the meters of lettable office space will come in were still reconfiguring their workplace layout year, on the backdrop of demand that had Source: Knight Frank Shareholder’s agreement of EACOP and the to the market over the next 24 - 36 months. and strategies to incorporate the SOP’s and been negatively affected by the effects of Tariff and Transportation Agreement which Some of the upcoming developments are for social distancing requirements. Flexible the pandemic. Whereas some Grade A office opened the way for the development of the owner-occupation ranging between 1,500- working in terms of working in shifts had been buildings experienced upward movement in Lake Albert development project in Q2 2021 take up over the last 6 months, vacancies were 5,000sq.m while the bigger developments are registered for lower grade offices, especially for investment purposes. Projected supply will where tenants opted to relocate and upgrade to be concentrated in areas of , Figure 6: Annual average occupancy for prime commercial offices newer or more modern office buildings and in and Bugolobi. some cases owner-occupied premises. 94% 92% Residential Market However, following the signing of the key oil 90% and gas agreements in April 2021 which paved 88% The residential property sector performance the way for the construction of a 1,440 km crude 86% registered increased activity in H1 2021. Initial- 84% oil pipeline from Uganda’s Albertine region to ly, there was a slowdown in acquisition and let- 72% the Tanzanian seaport of Tanga, opportunities 80% tings in the time leading up to the general elec- for a revitalisation in office activity are Lubowa Apartments. Space available to let. 78% tions, with expats choosing to leave the country envisaged which should stimulate demand for 76% until the electoral process was complete. An Knight Frank recorded a 6% increase in the 74% office space and boost confidence in the future increasing number of expats returned, after supply of prime apartment units, especially H1-2019 H1-2020 H1-2021 of the office market performance. the rollout of the COVID-19 vaccine, in their in the areas of Kololo, and Naguru . Despite the decline in occupancy, office Industrial Market Grade A Grade B respective countries and the positive reception The increase in stock vs low demand forced rents remained relatively stable for Grade A Source: Knight Frank it received in various parts of the world. This some landlords to discount their rents in order H1 2021 registered an increase in demand for and AB Offices, albeit grade A office average provided reassurance to many especially with to be more competitive in the market. It is showroom and industrial spaces within the city rents registered a slight reduction of 3% in regards to health and wellbeing and a quicker expected that over 161 apartment units will be center with most demand coming from sub- H1 2021 as compared to H1 2020 as a result of return to normalcy. added to the market over the next 18 months in sectors like furniture, agriculture-based firms, rent reductions that were enforced in some Kampala’s prime residential suburbs. food and beverages and automotive affiliated Table 7: Average Prime Office Rents & Occupancy buildings in the period after the May 2020 With the signing of key oil agreements in companies. lockdown. Prime office yields averaged between 16 April 2021, Knight Frank registered an uptick 81 Demand drivers in occupancy for high end 8% and 9% in the period under review. 14 80.9 in development activity among the property 80.8 residential apartments were amenities such Demand was mainly from companies seeking 12 80.7 developers with landlords hoping for increased 10 as gyms and swimming pools, proximity to proximity to clients, those seeking to diversify 80.6 General market sentiment indicated that Average Rent take up and improved rental offers for prime, 8 80.5 supermarkets, shops, green spaces, and large their nature of business, new automotive landlords continued to face increasing requests private rented accommodation. 80.4 Occupancy 6 indoor living spaces. Due to the lockdown that entrants into the market, chemical companies

Rent Per SQM (USD) 80.3 Occupancy for rent reductions and delay in escalations 4 An increase in sales inquiries was recorded in 80.2 necessitated working from home in Q2 2020, looking to expand, international companies from prospective and existing tenants. 2 80.1 H1 2021, despite delayed conclusion of trans- Knight Frank observed an increase in the looking to set up local franchises and 0 80 These however did not materialise for many, actions due to the pandemic and its impact Grade A Grade AB requirement for a home office in residential companies looking for short term storage space. considering several landlords had already on earnings and travel. Landlords maintained Building Category houses in H1-2021. Source: Knight Frank offered discounts to their tenants during and discounted asking rents that were put in effect Prime retail rents remained subdued as a result of the pandemic with landlords issuing various H1 2021 registered an incentives and discounts in a bid to attract and Figure 9: Retail Occupancy for KF managed malls H1 2021 vs H1 2020 Table 2: Average Net Rents (US$) for warehouses in H1 2021 retain tenants. increase in demand for 87 1.8

Description Rent per square meter (US$) 1.6 showroom and industrial 86.5 1.4 86 spaces within the city 1.2 Traditional Industrial Areas (1st -8th Street, and ) $6 Valuation & 85.5 1 center. Namanve Industrial Area $4 85 0.8 Advisory Change (%) 0.6

Occupancy(%) 84.5 0.4 When the pandemic was declared by the World 84 Source: Knight Frank 0.2 There was a noticeable relocation of large Health Organization (WHO), it culminated in 83.5 0 an unprecedented set of circumstances and Jan Feb Mar Apr May Jun industrial firms out of industrial areas within force majeure event. Months Kampala i.e. Luzira, 1st to 8th Street, Ntinda Average footfall figures across Knight Frank the absence of sufficient market evidence. The managed malls contracted by 28% growth in Royal Institution of Chartered Surveyors (RICS) 2020 2021 Growth Industrial area to the Namanve Industrial As a result, increased activity was recorded 2021 as compared to a similar period in 2019. alerted its regulated members to consider Business Park, with majority moving to owner around neighbourhood convenience centres. Source: Knight Frank These were however approximately 50% above whether valuations with effective dates occupied premises. This resulted in increased These are developments that are within close the 2020 average footfall figures recorded in following March 11, 2020 should be declared availability of space in the traditional industrial proximity to suburban residential nodes, the same period, attributed to the extended subject to “material valuation uncertainty”. areas of Kampala which fortunately was also making them easily accessible to households lockdown in March to June 2020 which saw This was to ensure transparency with clients taken up by other occupiers in the agriculture, and those that work from home. These only essential services trade. and emphasize the importance of the ‘valuation food and beverages market, automobiles, and developments are generally tenant mixed, date’, against the backdrop of rapidly changing furniture markets. with essential daily requirements and services. Figure 10: Average Footfall Growth for Knight Frank managed Malls Turnover rents recorded varied results, with market conditions due to the pandemic. On the other hand, regional malls were 250% service and fashion retailers showing single However, with resumption of transaction Movement of industries to the KIBP was greatly impacted by the restrictions enforced, digit growth in 2021 as compared to 2019 activity in some sectors, it is now within the 200% attributed to, among other reasons, the recording lower footfall levels compared to the numbers. General food and grocery traders were discretion of each member to include a material 150% incentives offered by UIA to different local pre pandemic levels. valuation uncertainty clause having regard to and international investors, some of which still approximately 12% below 2019 numbers 100% due to depressed spending by consumers and the specific attributes and the performance of include; tax holidays, exemption from payment Occupancy levels in Knight Frank managed 50% % Change the restaurant sector still showing negative the individual asset and its market. of stamp duty for land owned by the Authority, malls increased by 1.63% in June 2021 to an 0% growth of some 38% due to curfew. Average unrestricted remittance of profit after tax, rent average occupancy level of 86.72%, which was supermarkets turnover recorded a 3% decline In a June 2021 interview on the State of property -50% free land for a specified period, etc. 0.42% above the same period in 2019. This y-o-y during the period under review and a valuations in Uganda, Herbert Okello, Knight -100% increase was attributed to increased retailer Jan Feb Mar Apr May Jun further 20% decline compared to a similar Frank Uganda’s Head of Valuation and Advisory activity as highlighted in the subsequent Period Retail Market period in 2019. stated that, “the COVID-19 pandemic impacted paragraphs, and stimulus measures introduced valuations in various ways, from inspection of Monthly growth - 2021 Annual Growth - (2021 v 2020) Annual Growth - (2021 v 2019) by landlords in a bid to attract and retain The period under review saw subdued trade property to availability of reliable comparable tenants. We anticipate that occupancy levels Source: Knight Frank within the retail sector, as the world struggled information. In view of this, it is prudent will remain subdued throughout the year with to deal with the extended pandemic, stringent that we act in a transparent and professional the current lockdown already impacting on operating procedures to limit human to human manner. Any limitation on information or tenants as landlords are unable to issue any transmissions, impacts on supply chains, ability to investigate has to be made clear further concessions. Table 2: Prime Retail Rental dwindling consumer confidence and spending. and reported. Where a valuation relies on Rates in Kampala Figure 11: Average Turnover Growth for Knight Frank Malls This was further exacerbated by the general (Covid Impacted) information such as rental income, it is vital Metroplex Mall’s phased opening commenced election in Uganda which saw significant down that such evidence be accurate and up to date 80% time in general trade and internet services during the period under review with Carrefour Size Rates because this has a bearing on the outcome 60% being disconnected, further impacting on the opening their new store and Woolworths of the valuation. Not to be overlooked is the <10m2 $200 ability to trade. Bars and nightclubs remained opening their refurbished store therein. Arena importance of maintaining confidentiality of 40% <50m2 closed from the 20th March 2020. The leisure Mall in which is due to open on $36 any data relied upon”. 20% and lifestyle sector has been the most impacted the 29th July 2021, has gained traction on <100m2 $22 pre-opening letting, with retailers such as LC 0% due to curfew and well-founded consumer fear <500m2 $17 of socializing. Waikiki, Cafesserie and Frango, Great Burger >500m2 $15 -20% set to debut in the mall. Further, retailers’ Full interview can be found here: >1000m2 $11 -40% Enforcement of Covid-19 restrictions following expansion continued to be recorded in the http://y2u.be/8gfWqN8WhNY a spike in the number of cases saw public and market with Woolworths also set to make entry Source: Knight Frank -60% Jan Feb Mar Apr May Jun private transport prohibited with retail only into Village Mall and Hi-sense into Victoria These figures are average rentals for ground floor space in Kampala shopping malls but do not take Shop front to depth permitted to trade until 7:00pm, thus negating a Mall. ratio into account and exclude service charge. Annual Change Monthly Change

Source: Knight Frank OUTLOOK

The office sector is anticipated to have a Following the resurgence in COVID-19 cases, slow recovery to pre-pandemic performance The recent signing of the oil agreement and which resulted in a second national lockdown, levels especially due to the current lockdown rollout of the COVID-19 vaccine still provides the general economic performance is projected to necessitated by the second wave of the pandemic. hope for improvement in general economic be negatively impacted, albeit to a lesser extent Tenant covenant strength, length of lease term performance, albeit at a slower pace with particular factoring in the economic resilience built from and building occupancy levels have become improvements in the residential and office sectors. the first wave. This is anticipated to take a toll particularly important criteria for office investors. on the property market with reduced investor However, downside risks surround economic confidence, delayed completion of pipeline Employee health and wellness will continue to growth especially due to the evolving COVID-19 development projects, increased vacancies and be a key concern with the trend towards remote variants and the limited vaccine doses. It is yet to pressure on occupier businesses in terms of working expected to remain rife throughout 2021 be seen how the current lockdown will influence business continuity. We expect investor will adopt into 2022. In locations such as Nakasero and rents and occupancies, although these are likely to a ‘wait and see approach’ before undertaking any Kololo where space availability, is already quite be relatively subdued in the months to come. considerable capital investments in the market. high, upward pressure on vacancy will continue to intensify.

MANAGING DIRECTOR RESIDENTIAL AGENCY VALUATION & ADVISORY

Judy Rugasira Kyanda (MRICS) Lucy Kaitesi Wamimbi Herbert Okello +256 414 344 365 Head - Residential Agency Head - Valuation & Advisory [email protected] +256 414 341 391 +256 414 341 391 [email protected] [email protected]

RETAIL AGENCY & MANAGEMENT RESEARCH & CONSULTANCY OCCUPIER SERVICES & COMMERCIAL AGENCY

Marc Du Toit Patience Taaka Sharon Kamayangi Head – Retail Agency & Management Head - Research & Consultancy Head - Occupier Services & Commercial Agency + 256 414 344 365 +256 414 341 391 +256 414 341 391 [email protected] [email protected] [email protected]

Economic Update Sector by sector H1 2021 Outlook Analysis H2 2020 Kampala Market Performance Review and

H1 2021 Outlook. knightfrank.com/research January 2021 RECENT PUBLICATIONS

he rena a saa.

Knight Frank Research Reports are Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide range of clients available at worldwide including developers, investors, funding organisations, corporate institutions and the public sector. All our clients recognise the need for expert independent advice customised to their specific needs. Important knightfrank.ug/research Notice: © Knight Frank Uganda 2021 This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank Uganda for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank Uganda in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank Uganda to the form and content within which it appears. Knight Frank (U) Limited is registered in Uganda with registered number 35867. Our registered office is Plot 21, Yusuf Lule Road, Kampala, where you may look at a list of members’ names.