Avarts Housing Limited: Vincent Agaba Discusses their Competitive Advantage as a Top Property Management Company in Uganda

Could you give us a brief historical background of your business?

The business started in 2006. We operate in real estate and insurance, but we also provide financial advice. The motivation behind starting real estate management was the challenge many people, both within the country and abroad, faced in managing their real estate portfolios. They struggled with asset management, which included finding tenants, coordinating repairs and maintenance, and ensuring a return on their investments.

We saw an opportunity to step in and offer real estate management services. We manage these properties, allowing owners to focus on their other ventures, such as clothing businesses, agriculture, or other investments. We manage both commercial and residential properties, as well as warehousing and retail spaces.

Along the way, we realized that risk management is critical, and that is where insurance comes in. We partnered with Salam Insurance to make sure all these real estate portfolios are properly insured, thus protecting the return on investment. Additionally, we expanded our services to include financial advice, working with Housing Finance Bank. This partnership helps us provide clients with advice on construction finance and access to mortgages, which are essential for their projects.

Another important service we offer is real estate market feasibility studies. These studies ensure that investors build properties that meet market demand, avoiding situations where buildings do not align with the needs of the market. We provide a full range of services, feasibility studies, asset management, financing advice, and insurance offering a comprehensive solution to real estate investors.

Our main motivation was to safeguard real estate investments and ensure that tenants get value for their money through proper repair and maintenance. In this way, we provide a 100% 360-degree service that fully protects and manages real estate portfolios.

What is your competitive advantage as a business in the country?

“ I believe our competitive advantage is reliability. This business is very much about people, and it is crucial to be honest and trustworthy. We collect rent on behalf of property owners, maintain the buildings, and ensure they are kept in good condition. Managing the relationship between tenants and owners is key, tenants want to use the property, while owners expect the property to remain in the same condition as when it was rented. Balancing these expectations is critical.

As a company, we are committed to doing the work reliably, and we have the right people with the right mindset, people who respect the real estate management profession and deliver services with honesty and reliability. One of the challenges in this business is dishonesty with money, where some might mismanage funds. We ensure that all collected rent is properly allocated, and we only use the management fees for our own operations. Financial discipline is vital, and that is something we prioritize.

Another strength we have is our international experience. There are two directors; one from the Netherlands and myself from Uganda, so we understand both the local and global aspects of the business. This helps us combine local solutions with a global perspective, particularly when it comes to communication. Seamless communication with clients, especially those living abroad, is essential. We leverage modern technologies like Zoom, email, and artificial intelligence to ensure effective and timely communication, as well as coordination among all stakeholders in the real estate sector.

We have grown significantly, with over 600 tenants across our properties and clients from countries such as the U.S., the U.K., and South Africa. This allows us to engage with clients efficiently and maintain strong relationships across borders” says Mr Vincent Agaba.

How is the real estate industry in Uganda right now? Is it growing or still developing?

Over the last 15 years, I can tell you that the demand for real estate has transformed. Fifteen years ago, there were very few players, and the industry was mostly about the traditional landlord-tenant relationship. However, over the last 15 to 20 years, we have seen the rise of real estate developers, real estate managers, property services, and so on. Several factors have driven this growth—one being population growth and another being rural-to-urban migration. Both create significant demand for housing.

When people look for investment options beyond traditional shares, treasury bills, or bonds, real estate has become a viable investment destination. We see the middle and upper class investing heavily in real estate. There is also an increased demand for housing among young people leaving university, especially for one or two-bedroom apartments. People no longer want the hassle of maintaining a compound; they prefer self-contained apartments where they can live comfortably.

Another key trend is the demand for gated communities. People want to live in neighborhoods with easy access to roads, utilities like water and electricity, and amenities such as shopping malls, hospitals, and schools nearby. This modernization has greatly increased the sector’s appreciation.

Looking forward, I do not see this trend slowing down. The population continues to grow, but land does not, which means we will see more developments like apartments and less scattered housing. Land will become increasingly necessary for other uses like agriculture.

In the last 20 years, the changes have been numerous, and real estate is now seen as a strong investment. Even during the COVID-19 pandemic, when businesses like bars and massage parlors were closed , rental income remained stable. People still needed homes, and rent was one of the few consistent sources of income. This showed that investing in housing is essentially investing in the future.

What types of properties are you involved with?

We are actually very broad. If you look at our portfolio, we are big in terms of apartments and standalone houses. But we are also involved in office spaces, shopping malls, retail, and so forth. Our perspective is that housing is not just where we work or sleep or play; it’s everything, including schools and hospitals. The only difference is the use. For example, if I’m in a hospital, I’m still in a building, but I’m there for medication. When we talk about housing, we mean human settlements, places where people play, live, sleep, and work. As a company, we are interested in managing all these facilities to ensure they are functional, even in recreational spaces. When we go to hotels or resorts, we need functional taps, water heaters, and washrooms. Our role as a company is to make sure that all these facilities like stadiums, hotels, hospitals are well-maintained, with no cracks, leaks, or faulty equipment. In all those aspects, we are very modern and committed to ensuring that buildings are functional for human settlement.

Are you currently working on any projects?

Yes, we just launched a new project with about 30 units of apartments being built. But beyond that, we are looking to grow across Africa. We want to be present in every country where there’s an opportunity. Right now, we are focused on consolidating our operations in Uganda. One thing we’ve noticed is that in many African countries, companies have a high birth rate but also a high death rate. Statistics show that out of 10 companies born, only two survive past their third birthday. So, we decided to concentrate on Uganda first, to build a solid foundation over the past 15 years.

We’ve implemented real estate management software to reduce manual processes and improve efficiency. Currently, we are compliant with tax authorities, corporate governance, and all necessary regulations. Before expanding to other countries like Ghana, Kenya, or Rwanda, we wanted to make sure we had a strong system in place here. Now, we pick the system that we have put in place in Kampala and we are ready to replicate this system in other countries, like Tanzania or Gabon. That’s where we are heading.

Are there any other countries outside of Uganda where you have started operations or plan to operate as part of your vision?

As a company, not yet officially. We have not gotten any projects in any other country yet. But that is where we are headed. We have only been in Kampala, but we have spread around the country. We have three offices within Uganda,one in the East Central, and West. We also want to spread a bit to the North. Once we have about four offices in Uganda, we can move to another country.

Step by step, one step at a time, so we do not take on too much that is going to overwhelm us.

Can you provide more details about the 36-unit apartment project, is it made up of 1-bedroom, 2-bedroom, or studio apartments?

The project involves various apartment types, including 1-bedroom and 2-bedroom units, all with the amenities that are needed. This includes fire systems, generators, electric fencing, CCTV surveillance, and underground parking. Some of the units are also equipped with air conditioning. The apartments are priced at about $700 to $800 per month and are located in a prime area, just about ten minutes from the central business district of Kampala. These are considered high-end apartments, and we are proud of this project.

Is the project intended for rentals or for sales?

We are more into rentals because the investors that we manage buildings for are more focused on rental income. The cash flow is tied to rentals. Yes, we have a new project we just signed on, facing Lake Victoria, which consists of about 18 apartments, including two penthouses on top. That project is for sale as condominium apartments, so anyone can buy one apartment. That one is a very unique offering.

Can you talk about the penthouse in your new project and the apartments for sale?

The project is adjacent to Lake Victoria, featuring a new Expressway Highway that offers nearly 180-degree views of the lake. There are two penthouses with open terraces, ideal for enjoying the lake breeze. The penthouses are expected to be priced around $400,000, while other apartments will be approximately $250,000. This project benefits from excellent location and accessibility, as the Kampala Expressway connects to the Northern Bypass, allowing easy travel across the city and only about 30 minutes to the airport. It’s an exciting development due to its prime location.

Do you have any success stories or recognitions you’d like to highlight?

Sixteen years ago, my wife and I returned from the Netherlands and started this company. We recognized a significant challenge: many property owners in Kampala were struggling with their buildings. They faced issues like delayed rent and a lack of proper management. We decided to offer a service to help these investors by managing their properties effectively.

We take pride in seeing that people, whether they are in the U.S. or elsewhere, are receiving their rent on time while we run the operations with our team. This brings us great joy, as our success is not solely measured by financial gain but by the happiness and progress of our clients’ properties.

We have also created jobs; what began as a small initiative has grown to a team of about 15 full-time staff, along with additional caretakers at various sites, totaling around 45 employees. Additionally, we manage around 600 tenants in our buildings, ensuring a smooth relationship between them and their landlords.

We were instrumental in establishing the Association of Real Estate Agents of Uganda, with our office serving as the first actual office for the association. This has enabled us to advocate for important legislation, such as the Tenant Bill, the Landlord-Tenant Act, and the Mortgage Act, helping to open up the market.

Furthermore, we initiated real estate management programs at local universities. Previously, there was no bachelor’s degree in real estate management in Uganda, but we collaborated with Makerere University and Nkumba University to create these programs. Additionally, I serve as the chairman of the governing council for the Real Estate Store, East Africa.

What do you envision for the next three years?

In the next three years, we are focusing on enhancing our internal processes and ensuring compliance within the company. We aim to integrate more technology into our operations. One area we want to improve is our online presence, as social media and search engine optimization have been challenges for us.

We recognize the importance of being visible online. It is crucial to have a strong digital presence so potential clients can find us easily. As Nadia mentioned, we need others to advocate for us rather than solely promoting ourselves. We want to be more tech-oriented and agile, employing technology effectively to streamline our work.

We are actively looking for partners in the areas of social media and search engine optimization. In today’s world, people rely on online searches to find services, and if they cannot find us on Google, we are missing out on valuable opportunities.

Over the next three years, our goal is to increase our visibility online through various platforms and enhance our communication strategies. We want the public to know about our achievements and services, making it easier to replicate our successful model in other regions. We have the solutions ready; now we need to make sure people are aware that they are available.

What drives your passion for real estate, was it something you always wanted to do, or did you realize it while doing something else?

We entered the real estate sector due to our backgrounds. I studied Business Administration and Management and International Business and Management, while my wife Ellen studied Development Studies. The idea began during my transition between universities when I was looking for a house.

While searching, I encountered local motorcycle riders, referred to as “motorboarders.” When I asked them to help me find a one-bedroom house within my budget, they returned the following weekend with options that exceeded my financial limits. Despite communicating my budget clearly, they insisted I pay for the trip, which led to significant expenses before finding a suitable home. This made me realize that if I, as a university graduate, faced challenges in the housing search, others, especially those from rural areas, would struggle even more.

While pursuing my second degree at the University of Groningen in the Netherlands, I spoke to a professor about housing in that context. He introduced me to his brother-in-law, who owned a real estate firm focused on providing reliable housing information. My experience highlighted the issue of information asymmetry in the real estate market; agents were not effectively addressing clients’ needs and were more focused on their fees.

After graduating, my wife and I decided to return to Uganda and start our own venture. Initially, we collaborated with the same street agents to understand their methods and improve the process. This marked the beginning of our journey in the real estate sector, where we sought to make it more reliable and professional. Through training and learning on the job, we gradually established ourselves in the industry. It was more of a solution than knowing that it was real estate.