In the past 14 years, housing demand in Rwanda has hit a high. With the growing population in the country, the citizens have put a demand on the government. A lot of money has been splashed in the real estate investment to cater for the thirst of the market. It has been a blooming business one that has caught the eye of both local and international investors.
A number of improvements have as well been made that has seen the rising in figures. Rwanda’s project of building affordable housing has led to Rwanda Development Board (RDB) seeking strategies to meet its target. The board has been involved in a number of partnerships, with the latest being an Israeli firm ready to step into business with the East African nation.
The growing middle class has been the target market of the housing sector with the launch of affordable housing in the country being a major project to settle them. Low income earners have had house issue as well. Incentives have been made for investors to fund the project. The Government has collaborated with developers on the building of decent and affordable homes and attract investments in the sector. Such incentives include tax, electricity, water and proximity to roads.
Affordable mortgage prices have gained the trust of a number of citizens based on their salaries. With the economy’s dynamic shift, low and middle income earners have shied off from some real estate investments, with the sector facing challenges all through.
The housing gap catalyzed by increased population will be reduced by a significant number in 2022. Close to 17% of Rwanda’s population lives in Kigali, and being a strategic location the percentage may increase. To manage this, the government seeks to improve infrastructure in the rural areas and offer better housing for the citizens to settle. 83% of the population live in rural areas which then needs haste in settling the people.
In 2016, it was forecast that Rwanda’s property market was a bubble ready to burst. Investors poured money in the market fueling the economic progress of the country. The government can continue investing in housing and infrastructure and draw outside investments to the sector.Large scale housing projects would not only save their pockets but suffice the appetite of the market in the country.
The land value is a fraction high in the city of Kigali and the land is scarce. The Government can take advantage of the rural areas where there is an availability of great vastness of land to make housing projects. The income levels could not change overnight and with the consideration of this rural areas could be ideal regions for affordable housing.
There is more to be done in the country in the real estate sector.