Kampala rents held while supply thinned

Asking rents across our Kampala markets moved less than two percent this quarter. That is the headline, and on its own it is dull. The interesting number is supply: a fifth fewer listings than the same quarter last year.

What a flat market with thin supply usually means

Rents that hold while supply falls are rents with pressure behind them. Landlords are not discounting because they do not need to - and tenants are not seeing rises yet because the stock that did let, let quickly and quietly.

When supply tightens before prices move, the price move is usually two quarters behind.

What we are seeing on the ground

• Three-bedroom apartments are letting in under three weeks in Kololo, against six weeks a year ago.
• Furnished stock is the tightest it has been; part-furnished is where the choice is.
• Longer minimum terms are being accepted without argument, which is itself a signal.

If you are letting

Do not chase the market up on renewal. A good tenant staying another year at the same rent is worth more than a two percent rise and a void.

If you are renting

Widen the search by one bedroom or one area before you widen it by budget. Everything we have in Kampala is on the site, and the alerts are what tell you first.