Rapid urbanisation and rising demand for property are attracting investors to Mbarara City, but officials warn that unapproved subdivisions and illegal developers could expose buyers to land disputes and costly building complications.
Mbarara City’s property market is expanding as rapid urbanisation and growing demand for residential and commercial land attract investors, but city authorities have warned that illegal developers are putting buyers at risk.
More than 15 real estate companies are reportedly operating in the regional commercial hub, reflecting growing interest in land and property as Mbarara expands its role as a centre for trade and investment in Western Uganda.
However, city officials say some developers are subdividing land and selling plots without approval from the relevant physical planning authorities, raising concerns about unplanned settlements, inadequate infrastructure and disputes over land ownership.
Carol Warugaba, Mbarara City’s senior physical planner, said authorities had identified real estate operators conducting developments without the required permits.
“Many of these operators are opening up developments without authorisation from the city physical planning committee. We have identified several real estate firms operating illegally without the necessary permits,” Warugaba said.
She said some unauthorised developers were subdividing land into plots that did not meet approved planning requirements or align with the city’s physical development plan.
“Many of these unauthorised operators subdivide land into undersized plots without securing approved physical planning permits, leaving buyers vulnerable to land disputes, lack of access roads, and difficulties in obtaining formal land titles or building approvals,” she said.
The concerns highlight the risks buyers face when purchasing plots without confirming whether subdivisions have been approved and whether the land can legally be developed for its intended purpose.
Daniel Arinda, chief executive officer of Africus Real Estate, said Mbarara’s elevation to city status had opened up opportunities for property investment, although questionable practices continued to undermine confidence in the market.
“The growth in Mbarara’s real estate sector since attaining city status is remarkable. However, the sale of substandard plots exists despite ongoing efforts by the city council to regulate these illegal practitioners. So, we welcome stricter regulation to restore buyer confidence,” Arinda said.
Herbert Tushabe, chief executive officer of Amity Real Estate, urged prospective buyers to conduct due diligence and work with compliant operators before committing money to land purchases.
“As key stakeholders in the market, we see the potential and high demand for land. However, buyers must exercise due diligence and deal only with established, compliant real estate companies to avoid falling victim to fraudulent land deals and unapproved subdivisions,” Tushabe said.
Mbarara’s growing population, expanding commercial activity and strategic position as a regional hub have increased demand for housing, commercial premises and land for investment. The resulting construction boom has created opportunities for developers but also increased pressure on urban planning and infrastructure.
City authorities say private investment remains important to Mbarara’s growth but insist that development must comply with planning requirements to ensure orderly expansion and protect property buyers.
“Our goal is not to stop development, but to ensure order. We will continue to step up enforcement against illicit developers to protect unsuspecting property buyers and preserve the structural integrity of Mbarara City,” Warugaba said.
Prospective buyers are advised to verify land ownership, confirm that proposed subdivisions have the necessary approvals, check access roads and applicable planning restrictions, and establish whether the intended development can obtain the required building approvals before paying for a plot.
As Mbarara’s property market expands, the challenge for authorities will be to accommodate investment while enforcing planning standards that protect buyers and support sustainable urban growth.