Mbarara Northern Bypass Land Prices Rise as Investors Target Hotels, Factories

What the report says

Land along Mbarara City’s Northern Bypass in western Uganda is becoming more expensive as investors focus on sites for hotels, commercial projects and industrial facilities, according to Nile Post. The rise is linked to better road access, urban planning and the city’s physical development plan, which is guiding how land in Mbarara North Division should be used.

City officials say the bypass has shifted from largely farmland to an area with clearer zoning for hospitality, residential, commercial and industrial development. Mbarara City Council Speaker Bonny Tashobya said the improved road network and designated land-use plan are giving investors more confidence about future growth. City physical planner Carol Warugaba said the current review of the physical development plan is meant to organize expansion and preserve space for different uses, including industry.

Tashobya said land prices have risen sharply, with a 50-by-100-foot plot now said to cost Shs60 million and above. He and other local voices cited growing demand from both residents and outside investors, including those interested in larger factory sites. Warugaba also noted that some areas have minimum plot-size rules to manage growth and keep land available for planned uses.

The report suggests the bypass is emerging as a major investment corridor as Mbarara expands as a commercial center in western Uganda. The development matters because it reflects both stronger investor interest and the city’s challenge of balancing property demand with orderly planning and infrastructure needs.