Why Warehousing system is becoming a game changer in the real estate industry.
Not long ago the real estate sector mainly relied on two major strengths that is residential and commercial but the recent trends in development and trade, and interconnectivity between countries, and natural calamities warehousing system is quickly becoming a game changer in the real estate sector.
The business boom and the interconnectivity between East African and demand for high quality purchases, there is a need for a robust supply chain of goods and services and this can be possible with a strong warehousing system.
The ware housing system is set to boost economic growth by lowering the costs of moving goods and thereby increasing the volume of trade across the country and the region. The warehousing system can also be centers for imported goods but also agricultural, minerals and other locally produced resources that can be exported to the rest of the world.
But whereas warehousing remains an ideal real estate investment they are things to take note of, the first one is that land purchases continue to attract many players especially targeting prime land at key locations across the country. Therefore, you have to be strategic in looking for key locations.
At the moment one of the strategic locations with prime land that remains ideal for the warehousing system in western region is along Mbarara –Sanga –Kaguta road on Mbarara –Masaka highway. The place is an easy gateway for Rwanda, Burundi, Tanzania and DR Congo, thus having a chain of warehouses here can easily facilitate businesses between Uganda and these countries putting in consideration the reduced transport costs thus making this investment ideal.
But also, this area is located along a standard-good interconnected road infrastructure across these countries making transport of goods and services easier and cheaper. But again, besides the regional markets, change in consumer behaviors like shift towards online shopping and high-quality purchases traders, companies demand distribution centers that are close to the metropolitan areas.
The congestion in Kampala City, which is regions shopping area for the western region and interconnects to other regional countries for the supply of goods and services from like Kenya, Tanzania, South Sudan and other foreign countries across the Indian Ocean negatively impacts of the cost of doing business which may include late arrival goods and other costs like fuel
Another factor why the warehousing system should be an interest of every investor in the real estate industry is that it offers an answer to natural calamities which at times frustrates businesses. An example here is the continued breakdown of Katonga Bridge along Mbarara –Masaka due to heavy rains. This is the only major route for vehicles bringing goods from Kampala to other cities in western region but also across borders, its breakdown paralyzed most business, the was imbalance between supply and demand for goods and even prices shot, even some projects like constructions stalled but if there were warehousing system.
The Mbarara City-Sanga-Kaguta Road stretch also has some of the other infrastructural services like water and electricity. The coming up companies and government projects strategically position themselves along this area is a clear manifestation of the area being potentially ideal for investment. Government has 325 billion technology, engineering an innovation center at Rwebitete in Sanga town council, a meat processing factory also being constructed along the same area with other factories like milk processing factories Amos and Pearl diaries.
Compared to other real estate investment, warehousing can be an attractive investment because the construction costs are much lower, and takes less time to build, are easy to maintain, and occupancy rates are high.
At Nembabazi Real Estate Ltd we have estates along this stretch and we can help individuals and companies who want to acquire land for warehousing development. Remember even if you don’t operate the warehousing yourself, you can rent, lease it out to companies or individuals that are looking for distribution centers near their clients.
