Property prices in the Northern Bypass area of Mbarara City have increased significantly as investors target the corridor for hotels, factories and commercial sites. The rise reflects growing interest in the zone, which city authorities have designated for hospitality and industrial use under Mbarara's physical development plan. According to Mbarara City Council Speaker Bonny Tashobya, a 50-foot by 100-foot plot that was once considered affordable now costs at least 60 million Ugandan shillings.
City authorities say the zoning framework and improved road access are driving orderly development. Mbarara City physical planner Carol Warugaba explained that the revised development plan designates different areas for institutional, residential, commercial and industrial uses. The city is also enforcing minimum plot-size requirements in some areas, with the Northern Bypass, Biharwe and Nyakayojo designated for larger industrial developments.
The demand for land extends beyond Mbarara's borders. Real estate developer Herbert Tushabe said population growth and increased interest from investors outside the city are fuelling price increases, with many seeking land for large-scale factories and manufacturing facilities. Tashobya noted that the North Division still has significant available land for investment, unlike the South Division where residential subdivisions are more extensive.
The Northern Bypass is becoming an important corridor for Mbarara's expansion as a commercial hub for western Uganda. The sustainability of development will depend on how the city manages investor demand alongside land-use regulation and infrastructure provision.