Real Estate Sector Profile in Rwanda
Real estate sector is a key sector and a potential driver of future economic growth. There is high demand for both residential and commercial buildings. The annual demand for residential houses is increasing at a rate of 25,000 per year. Investment in the sector has grown from US$ 100 million to US$ 480million in the last 13 year and this is driven by population growth, an emerging and growing middle class, increased Diaspora investment in Rwandan property markets and the government investment in infrastructure expansion and modernization of urban and rural infrastructure
Characteristics of the real estate sector
- Real estate sector remains under served with an annual demand estimated at 25,000 units of which 8,000-10,000 are in Kigali.
- Rent fees are still high because supply is far behind demand
- Prices of plots of land and houses are influenced by the type of infrastructure developments in a particular area and the demand of the services.
- Land for development is readily available
- There is a one stop centre to facilitate investors
- A package of tax and non tax investment incentives is available to investors
Demand and supply in the real estate sector Rwanda
The demand for real estates in Rwanda in greater than the supply and this is mainly due to increased population growth rate within the country. The estimated housing gap in excess of 400,000 houses .
Investment opportunities in Real Estate Sector Rwanda
- Development of low cost and middle income housing estates
- Development of warehousing, office buildings and malls
- Investment in construction of apartments and hotels
- 186,168 housing units are still needed to cater for the growing population
- A youth sport centre
- Office Blocks in Kigali City and other urban areas
- Development of housing estates or blocks for high income class
- Brick and Tile making factory
- Manufacturing of construction finishing materials
- Commercial complexes and shopping areas
- Development of entertainment centres
- Training and certification of key services: Architects, engineers, plumbers