Ugandan construction costs stay largely stable

March 14, 2018 in Business, Infrastructure, Markets, Real Estate & Property by Editor

March 14, 2018—Construction costs have largely stayed the same with a 0.1% rise for the year ending January 2018 compared to the 1.2% recorded in December 2017.

Some big developers like the National Social Security Fund can expect to cost their real estate investments better with the prevailing price stability.

Dick Wanaso Wadada, a Senior Statistician at UBOS said, “We saw increments of 0.4% in prices of inputs for residential buildings and also an increase of 2.4% in prices of inputs for the civil works sub-sector across the country.”

There price rises for cement, steel and other iron related materials which added a 8.3% input costs. For electrical wires and cables prices went up by 2.28% due to the increasing prices for copper. Diesel and bitumen prices rose 8.28% and 3.81% respectively.

“When you sum up all the increasing costs for the construction inputs this automatically had to push the costs for the construction sector to go up in the country although the rate was at snail pace, “ Wadada said.

On a monthly basis the UBOS report indicates that the cost for the construction sector increased by 0.13%. The general inflation level in Uganda is below 4%, one of the lowest seen in several years.