IMPACT OF 2021 UGANDA PRESIDENTIAL ELECTIONS ON REAL ESTATE
In a campaign marked by violence, killings, arbitrary arrests and internet shutdown, voter intimidation and irregularities in vote tallying. Uganda’s electoral commission declared incumbent Museveni the winner of the country’s presidential election, extending his 35-year rule. One question still remaining, what does this mean for the real estate industry and other markets in Uganda?
Key points Uganda 2021 Election Effect on Housing
- Whether you will like the 2021 presidential election results or not the real question is how it will affect the Uganda housing market
- So what do 5 more year of President Museveni mean for housing trends?
- Where will the most action be and which housing types are going to be hottest?
- Whether you have been thinking about buying a home, selling a home, investing in real estate or becoming a real estate agent there elections will affect in one way or another.
Whether or not you follow politics, every real estate investors, Developers, lenders, buyers and sellers will want to keep up-to-date with the current presidential elections. Presidential elections can lead to huge shifts within the government that impact all industries, including real estate.
Let’s look at what these elections can mean for real estate prices, home sales, and property-related taxes in Uganda.
Appreciation May Drop Off During an Election Year
Historically speaking, election years are good for buyers. That’s because during an election year home prices tend to rise more slowly or even fall due to uncertain times. Uncertainty Can Make It More Difficult to Sell Your property. Another factor impacting home sales is the uncertainty that comes with president results and how voters will respond to the results. Post election violence can make investors or buyers hesitant to invest in real estate. Many buyers will simply wait until after the elected president is in office before buying property
Property taxes and taxes on construction materials may change.
This means that the Taxes that make owning real estate more affordable could be up in the air. They may increase or decrease, but that’s never known until the policymakers take office and vote on it.
The Consumer Confidence Factor.
One thing that’s influencing matters in 2021 is the fluctuation in consumer confidence Uganda economy. The health of the economy and housing are closely tied together. When consumers feel confident, they are more likely to buy. With consumers on the fence about the economy, the uncertainty of the elections could create more pessimism than optimism.
Government-led internet shutdowns
Internet shutdowns cost the Uganda economy billions of shillings. An internet shutdown is an intentional disruption of the internet or digital communications, which makes those services inaccessible. Internet shutdowns are often carried out by governments or authorities “to exert control over the flow of information. Top10VPN traced 18,225 hours of internet shutdowns around the world in 2019, which carried a total economic cost of $8.05 billion. Internet shutdowns (also) negatively impact businesses located outside of the affected country by preventing international companies from interacting with their business partners and potential customers,
Economic Impact: Internet shutdowns affect economies in multiple ways, upsetting productivity and generating monetary losses in time-sensitive transactions.
Although these studies have not been updated in the last several years, figures associated with more recent shutdowns are readily available:
- A December 2018 Internet shutdown in the Democratic Republic of Congo was estimated to have an economic cost of USD 3 million per day.
- A January 2019 Internet shutdown in Zimbabwe reportedly cost the country USD 5.7 million each of the six days it was unavailable.
- It was estimated that a month-long Internet shutdown in June 2019 in Sudan cost the country over USD 1 billion, or nearly one percent of the country’s GDP.
Ugandans in Defense Mode.
While the small majority of Ugandans may be celebrating a personal win this week there are many others who are going to be in panic mode, believing this is the end of their Ugandan life. They may downsize to help keeping down debt and decide to move to more remote areas in anticipation of worse times ahead. Real estate agents and investors can serve these people if they understand their fear.
If you are braving the housing market during an election year, Spectrum real estate solutions can at least take the stress out of moving.
