Rugunda Pleased With Locally Manufactured Building Materials

Prime Minister launches Wealth Report.

Prime Minister Dr. Ruhakana Rugunda has applauded the local building manufacturers for producing high quality materials which has encouraged most of the construction companies to prefer them to
imported materials.

While presiding over the launch of the Knight Frank Wealth Report 2016, and Dr. Rugunda was pleased to note the increasing competition in the real estate sector.

The Knight Frank Wealth Report indicated that the residential sector in Uganda is one of those areas that still demand attention by property developers.
The Premier further stated that with the population of the country continuing to grow, especially in urban centers, the need for quality and affordable housing remains a challenge and an opportunity the real estate industry should address and meet.

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Over the past decade Knight Frank’s Wealth Report has provided a unique perspective on the interaction between wealth and the world’s prime property markets.

The annual publication includes performance data for 100 key global luxury property markets as well as the results of The Wealth Report Survey.

This year’s survey, conducted in conjunction with ultra-wealth intelligence consultancy Wealth-X, is
based on the views of around 400 of the world’s leading private bankers and wealth advisors who, between them, manage assets for about 45,000 ultra-high-net-worth individuals (UHNWIs) with a combined wealth of over half a trillion US dollars.

According to Knight Frank’s 2016 Wealth Report, Residential real estate accounts for a quarter of the average UHNWI’s investable wealth, while commercial property investments make up 11%. Over the
past 10 years, 54% of respondents in the attitudes survey said their clients had increased their allocation to residential property.

Offices and hotels are predicted to remain the investments of choice, although investment in warehousing and logistics could overtake shopping centers and high street retail.

Globally, wealth taxes, succession and inheritance issues were identified as the three main factors threatening wealth creation over both the past 10 years and the next decade. Succession issues are the
biggest worry for UHNWIs around the world with recent research suggesting that it is the second generation, rather than the oft-quoted third, that is most likely to squander the family fortune.

When asked why their clients were so concerned about handing their wealth to the next generation, 62% of respondents said they didn’t feel their children would be encouraged to make their own wealth,
while almost half said they wouldn’t know how to handle the investments.

Knight Frank’s index highlights that, within Africa, the number of UHNWIs with a luxury automobile is 1.55 times the global average.
Although wealth in Africa is extremely concentrated in certain countries and Knight Franks sees growing potential for luxury brands including high-end auto marques. UHNWIs in Africa and Latin America
show a much stronger propensity for private jet ownership (2.0x and 1.59x respectively) than the global average.

While the playgrounds of the super-rich are ever-changing, a new generation of young, extremely wealthy entrepreneurs and business people are looking for new ways to invest their money. One area to
have seen a huge leap in interest from investors is sport, particularly football.

According to Deloitte’s annual Review of Football Finances, English Premier League (EPL) revenues rose 29% last year from £2.5bn to £3.3bn.

Despite ongoing difficult economic conditions in many emerging markets, the appetite of wealthy
collectors hasn’t diminished according to the report.

The Knight Frank Wealth Report 2016 states that large, fast-growing cities, such as Nairobi, Lagos, Dar es Salaam and Luanda will continue to offer the clearest investment opportunities.

It predicts that growth of Africa’s consumer class will create opportunities for further development in the retail sector – both in the current hotspots and in second-tier cities where developers may be able to gain first-mover advantage.

The logistics sector should also emerge in importance, particularly in key gateway locations such as Lusaka, Zambia.


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