_Characteristics of Commuter Towns

01 PROXIMITY TO URBAN CENTRES 
Commuter towns surrounding Kampala are typically situated within a 20-30 kilometer radius of the city center, enabling daily commutes for residents employed in the city centre. However, traffic congestion during peak hours can be a major pain point, with travel times often extending to two hours or more. The gridlock is exacerbated by the log-jam of commuter town traffic plus traffic to upcountry locations. To counteract peak hour congestion, residents strategically adjust their routines by either working late, starting early, or using less congested but longer alternative routes. This requires planning, adaptation, and acceptance of the opportunity cost, but ultimately balances the convenience of a lower cost of living and improved quality of life with the challenges of commuting.

02 RESIDENTIAL FOCUS: MORE AFFORDABLE HOUSING 
Commuter towns are primarily residential areas, with the majority of the population living in single-family homes or apartment complexes. Commuter towns provide an alternative for residents seeking more affordable housing options, with costs typically lower than those found in the core CBD. Commuter towns still have vast chunks of affordable residential land available for sale with real estate developers setting up land estates and offering plots for sale. However, a limited stock of residential properties is available for sale and rent since most developments in the commuter towns are for owner occupation.

03 TRANSPORT NETWORKS 
These towns have well-developed transport modes and networks, such as highways, expressways, or bus routes, to facilitate commuting to nearby cities for work and leisure. The real estate markets in areas like Kiti, Matugga, Sentemma, Nakwero, and Kitukutwe have experienced increased residential and retail activity over the past five years, fueled by infrastructural upgrades as shown in detail in the full report. The improvement in road infrastructure in these regions has triggered a significant increase in land and property values.

04 TRANSPORT FARES 
Travel from the Commuter towns to the city centre is either by public means or private means depending on individual preferences and financial standing. On average, a one-way taxi fare from a commuter town to the city centre ranges between UGX 2,000 and UGX 5,000. Private vehicle commuters typically incur expenses between UGX 20,000 and UGX 100,000 daily depending on the travel distance and their vehicle’s fuel consumption.

05 PROPERTY PRICES AND TRANSACTION CURRENCY 
Residential land values in commuter towns vary based on proximity to amenities, accessibility, and other market factors. The primary transaction currency within these regions is the Ugandan Shilling (UGX), indicating strong demand from primarily indigenous buyers. We provide in the full report the average land prices per acre and annual growth rate for land prices in select commuter towns. Over the last 5 years, the increasing interest in commuter towns has led to an 8% to 20% annual increase in land prices depending on the location of the town and other key factors. Kiwenda and Mbalwa recorded the highest annual land price appreciation among the selected commuter towns.

06 COMMUNITY AMENITIES 
While they do not offer as many amenities as larger cities, commuter towns typically have essential services and facilities, such as schools, grocery stores, medical centres, parks, and recreational areas. Recreational amenities such as Sports parks and sports centres are emerging to serve the growing demand for leisure and fitness activities among the local population.

Visit https://bit.ly/49UDsZh to download the full report.