Rwanda: A look into Kigali’s Real Estate Sector- Opportunity or Crisis
Rwanda’s transformation has been mainly resulted from growth in urbanization and housing development. Kigali, the capital of Rwanda, is currently the fastest growing city in terms of urbanization in Africa. This has led to the creation of investment opportunities primarily in the real estate sector in Kigali to cater for the growing urban community.
A drive in Kigali city will reveal the massive growth with the presence of high rising buildings for both commercial and residential purposes and some still under construction. However, it is not strange for you to see empty houses and commercial spaces throughout the town. This has become a concern for the government and local and foreign onlookers.
The real estate issue in Kigali is quite complicated to understand. The heightened nervousness in the real estate sector of Kigali has been caused primarily by the rumored significant default rate on banks for the industry. The market is currently flooded with houses to rent despite the slightly falling rental charges. However, there is a need for intervention into rental prices charged especially for commercial spaces in the city. There is also the need to intervene on banks which should stop giving loans for more construction projects at least for the few coming years until the sector stabilizes.
However, these concerns do not necessarily mean that the real estate is about to drift into a crisis. The country’s devastating but unique history has left it with many gaps for development. The country offers an opportunity to start ground zero and build upwards at a rate that other countries may not achieve. Both locals and foreign investors have a chance in the huge swelling opportunities all at once. In fact, Rwanda can be considered one the most promising countries to live out your life in investments, especially after retirement. With the country’s safety and cleanliness standards, massive investment opportunities, stability and a sense of pride for people of color, Rwanda only requires to beef up its health standards to transform into a global retirement industry.
Rwanda’s population is also expected to increase adding more promise for the real estate sector. Majority of the population has also transformed from low class to middle class meaning that they are at a position to afford houses. More engagement of leadership into the real estate sector such as putting the industry on the global map will boost development. There is also need to professionalize the industry, create learning opportunities for developers and demystify the norm that real estate is the only way to create wealth in Rwanda.