INVESTING INSIGHTS: The maturity mismatch and the interest clock.

Why do so many real estate developers fail before they ever hand over a key? In this episode of Property 360°, we break down two silent killers of development projects in Uganda.

A developer takes a commercial loan at 18-21% interest, and the bank's clock starts ticking immediately. But construction doesn't move that fast — weather delays, KCCA approvals, material price hikes, and supply chain bottlenecks can stretch a build to two years or more. That's 24 months of compounding interest with zero rental or sales income coming in. You're bleeding cash before you even have a product to sell. This is the maturity mismatch trap.
There's also the presale illusion — developers who bank on off-plan buyers to fund the final stages of construction. When the market slows or confidence drops, those presales dry up fast. Contractors go unpaid, banks freeze funding, and the whole project grinds to a halt.

If you're a developer, investor, or just curious how Uganda's real estate projects really collapse behind the scenes, this one's for you.