International construction market survey 2016

Around the globe
Uganda – Kampala
Infrastructure investment propelling construction expansion
Economic overview
Major economic indicators for the last quarter of 2015
revealed a weak Ugandan shilling, high interest rates and
rising costs of construction. The fiscal balance is likely to
remain firmly in deficit given weak public spending controls,
lower levels of aid and high spending on infrastructure.
Trade with South Sudan has fallen at least 60 percent
since the end of 2013 due to instability in the region,
while the situation in Burundi – a key market for
Uganda’s manufactured goods and produce – must
be quickly resolved if it is not to negatively affect the
Ugandan economy.
Construction market and trends
Infrastructure related to the development of Uganda’s
oil reserves will be the primary driver of construction
expansion in the medium term, supported by
improvements to the national power supply and
regional transport links.
Potential investors may be discouraged by low oil prices,
the dominance of Chinese firms and allegations of
government corruption. Upgraded regional logistics
networks and the addition of hydropower plants to the
ailing power supply will support the oil industry and
facilitate trade flows.
Future outlook
A moderate increase in real GDP growth to an annual
average of above five percent across 2016-20 will likely
be spurred by public investment and robust private
consumption. The successful development of vital
infrastructure, including the upgrading of the electricity
and road networks, represent key priorities for the
coming years.
International building costs per m 2 of internal area, in 2016
UGX
USD
(exchange
rate: 3,395)
Airports (building only)
Domestic terminal, full service 12,725,751 3,750
Low-cost carrier terminal, basic service 8,600,000 2,530
Car parks
Multi-storey above ground 1,414,200 420
Multi-storey below ground 1,793,600 530
Commercial
Offices – Business Park 2,966,400 870
CBD Offices – up to 20 floors medium (A-Grade) 3,138,800 920
CBD Offices – high-rise prestige 4,691,000 1,380
Education
Primary and secondary 2,069,600 610
University 2,688,000 790
Hospitals
Day centre (including basic surgeries) 2,966,400 870
Regional hospital 3,483,700 1,030
General hospital (e.g. city teaching hospital) 5,242,900 1,540
Hotels
3 Star travellers 4,173,600 1,230
5 Star luxury 5,242,900 1,540
Resort style 5,000,000 1,470
Industrial
Warehouse/factory units – basic 1,207,200 360
Large warehouse distribution centre 1,759,100 520
High-tech factory/laboratory 5,242,900 1,540
Residential
Individual detached or terrace style house – medium standard 1,697,500 500
Individual detached house – prestige 2,919,000 860
Townhouses – medium standard 1,931,600 570
Apartments low-rise – medium standard 2,276,500 670
Apartments high-rise 2,621,400 770
Aged care/affordable units 1,800,000 530
70
Turner & Townsend