Property Services: A Leading Property Developer for Commercial and Industrial Space in Uganda

Interview with Pradip Karia, Chairman and Managing Director of Property Services Limited

What is your assessment of the real estate sector in Uganda? What are the latest trends?

The real estate sector in Uganda is a growing sector. In terms of the requirement for housing space and residential space in Uganda, there is a shortfall of almost 1.5 million housing units in the country. There are graduates coming out of university, couples getting married, everyone wants their own freedom. The housing demand is growing every day. Kampala is a fast-growing city. The government has created a few other cities in the country and they also require real estate development. No city can operate without a city center. You need space for an industrial area, educational area, recreational area, religious activities, etc. It will then facilitate the area’s production. Northern Uganda is very good in seed production such as sesame seeds, rearing of cattle, timber growth, and other agriculture. All these areas are now being explored. If you go from here to Luweero you can see so many farms coming up. There is a spur of property development right through the suburbs of Kampala.

Is it easy to be in your sector? Are there major challenges?

There are challenges in all sectors of business and life. If I were to say that there were no challenges, I would not be doing it justice.

How competitive is the sector?

Our focus is on commercial space and industrial space. We would like to develop now into the cities outside of Kampala. There is a growth potential and affordability for the other city users.

The real estate sector is competitive but there is still room. 20 players would not saturate the market. The requirement for residential units alone is over 1.5 million. The key players in the market today could never deliver that many units in five years. These are the challenges and the goals that need to be fulfilled. The government has been investing very heavily into road infrastructure. When you travel from Kampala to Arua, Kampala to Kabale, Hoima, Mbale, and the border, you will find that the infrastructure now makes it very easy to move around Uganda. In another couple of years, by the time the northern sector is connected with the west and the east, there will be interconnections throughout and lots of movement going on. The flourishing of these new cities and towns will not only decongest Kampala, but it will also create prosperity in the other areas.

What sectors are you present in? What makes you different? What are your competitive advantages?

Our major focus has been on the commercial and industrial side. On the commercial side, we have expanded affordable retail space to the upcoming business houses. How many people here can afford large spaces? It is important to tailor make spaces that are affordable for people to operate in. They can start in a small space and then incubate into a larger space. The growth creates that environment into the business. You go from the incubation into the next stage. We also have people using our spaces for industrial development. Some of these people who were retailers now are manufacturers. You must move with the market. There is a requirement in the market for residential, commercial, and industrial. We even need leisure complexes. Uganda is an upcoming country now due to the government providing a conducive environment. The country has been blessed with a good President that is pro business. He is trying to put an emphasis on making use of our own resources. He would also like to see development of the country. Instead of people living in grass thatched houses, he wants them in properly built houses. This transformation is actually happening. If you see what was there 30 years ago compared to what is there today, you would appreciate the change that has transpired in this country.

In which area are you the strongest? Where is your main focus?

Our focus is on commercial space and industrial space. We would like to develop now into the cities outside of Kampala. There is a growth potential and affordability for the other city users. Every city will have its own demographics.

What have you built internationally?

We have completed more than 100 buildings internationally. We are one of the pioneers who have changed the skyline of the city of Kampala. We are proud as Ugandans to have been a part of this change in the real estate sector of Uganda.

What would you like to develop?

We are in the housing market now and we have started a company called Nationwide Properties Ltd. branded as the Royal Palms. We have already delivered 350 homes. They are ready and occupied in the estate. By the middle of next year, we will deliver another 70 homes. In total it will be 420 homes. We anticipate completing this estate with 1,400 units. It houses one of the world’s best education facilities in Uganda, the GEMS Cambridge International School. These houses are to be sold on. We will not manage and rent them. We want people to buy these homes to become owners. They can be joyful and proud to say that they own a home on the shores of Lake Victoria.

Are you looking for investors or partners?

If the synergies are there and we find an investor or partner in an area of business, we are open. If we have good chemistry with a good partner, our book is open. We want co-investors that will partner with us in developments. They should also have a growth factor in the real estate market in the country. We want to improve on technology that is more modern. People have pitched to us prefab housing, etc., but the Ugandan market is very clear that it wants proper, conventional, brick and mortar homes. If there was a better technology that could provide better delivery then we are open to this. We are also open to investors that would like to make some profits on their investments.

What projects are you developing currently?

We have 1,500 apartments that we will soon build in Lubowa. We have already acquired the land sites. It is not far from the expressway. The commencement will be with almost 600 apartments and we hope to break ground by the middle of next year. We have industrial space that we are looking at for development. We have also secured land upcountry in the new cities. There will be some new estates coming up in the Jinja area. We are exploring placements in northern Uganda like Gulu and Lia. Hopefully, my Board will look at these ventures early next year to propel us into the next few years.

What is your international reach?

We have people that we relate to in the UK in the real estate sector. We relate to the Indian market, too. But our main focus has been Uganda. We have associates in the UK, India, Canada. We have many suppliers originating from China, the UAE, India, the UK, Germany. For the majority of the buildings that we build we try to use locally sourced materials. However, there are some materials that are not produced in Uganda. We try to use the best possible materials. When I sell a house, it is not a house, I am giving you a home. When you sell a house to someone, that family should be happy there and be able to enjoy that home without any maintenance work for the first ten years. Even in our commercial space, we are fully compliant with the IT technology. All you have to do is plug in and go. We have improved with every building we complete. There is a constant appraisal on the laws and planning and making sure the buildings we have and which we will be in production of are compliant to the levels that you would see in the UK, the US, and Europe.

What is a success story that you are proud of?

The success of this company has been our clients. We have seen people coming in as basic people, hand to mouth, and now they are someone who owns a car and can take their children to better schools, who has a proper place to live. We have so many families and that is the biggest success of our mission. We are providing spaces not only for commercial purposes, but for people’s successes in life. We provide homes to small families and families that are growing and you will find a different spur of life growing into Uganda. Uganda is settling down from a big turmoil. There are conducive policies and good governance. The government has been very patient in helping us to be sure that developments are taking shape and size. Our growth is moving on and other competitors in the market are growing as well. We have all grown up together. You feel happy and proud but especially for those that have worked with you in construction or providing services. These are people that started with a few pennies and now have pounds in their pockets and their bank account and their families are doing well. We feel proud to improve peoples’ lives.

What is your vision for the company in the medium term, two to three years’ time?

We want to see commercial space not only in Kampala but growing into the new cities of Uganda. With this commercial space, we also hope to develop residential and leisure facilities. These leisure facilities will have people who will be able to come and run to operate. Life will be easy. We will give you a shell or an educational institution you can occupy and start your business there. We would like to see every city in Uganda become better than Kampala. Our vision in the next five years is to deliver at least another 1,000 plus units of homes.

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