Real Estate Management and Financial Performance of Real Estate Organizations in Uganda Case Study: Mpg Associates Limited

Abstract

The real estate industry in Uganda is still growing despite being a major industry globally. The boom-bust nature of property price fluctuations has played a key role in business cycles in the past, fuelling the upswing and magnifying the downswing of the cycle. Analysts pinned it as being the major cause of financial crisis of 2007-08 also termed as the great recession. It was after this recession that the government decided to focus on the industry. The industry is however dominated by the private sector a section of which is comprised of individuals. Analysts have however observed that a number of apartments and office spaces are empty lacking potential clients. The real estate investors are therefore struggling at moment continuously subsidizing prices to accommodate clients. Analysts also argue that commercial buildings are driven by anticipated entry of several new players targeting opportunities in Uganda’s oil and gas sector ahead of the commercial production phase but these have had unanticipated delays forcing some investors to close shop. The study was therefore about the effect of real estate management on the financial performance of real estate organizations in Uganda.

The objectives of the study were; urbanization and physical planning, economic climate and mortgage and how they influence the financial performance of real estate organizations.

A sample of thirty seven (36) respondents was used from MPG Associates Limited. Data was collected using closed and open ended questionnaires and observation methods.

The findings of the study were that urbanization and physical planning, economic climate and mortgage financing looking at how they influence the financial performance of real estate organizations Uganda.

The study concluded that urbanization and physical planning are important because proper planning like estates appeals to customers, the economic climate determines the level of profits got by investor and mortgage financing influences the customer base as people can use loans to acquire property. Furthermore the study recommended that further research should be done on mortgage financing as it was highlighted as being a major aspect that caused the global recession.

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