Over the past few years, Rwanda’s real estate market has experienced significant growth, making it one of the fastest-growing sectors in the country’s economy.
According to the National Institute of Statistics (NISR), the services sector, which includes real estate, contributed 44% of Rwanda’s national GDP. The stable political climate, rapidly increasing urbanization and population growth, and efforts to promote economic proliferation and urban development have all contributed to this expansion, attracting more investors to both commercial and residential segments.
Hassan Adan Hassan, CEO of ADHI Africa Holding Ltd, a real estate development and construction company, provided an overview of Rwanda’s current real estate environment.
“The real estate market in Rwanda has been undergoing robust growth in recent years. This growth is fueled by the nation’s stable political climate, consistent economic growth, and strategic government initiatives focused on urban development. Kigali City Master Plan’s implementation has been a catalyst for both private constructions and public works, leading to the real estate sector making significant contributions to the national GDP. Urban areas, especially Kigali, have seen a surge in property demand, invigorating residential and commercial real estate development.”
For investors looking to invest in the market, Adan notes that there has been a significant demand for residential properties, particularly in urban centres like Kigali, where the middle class is growing.
This increase in demand has led to a surge in residential property prices. However, commercial properties have also seen stable demand – despite market disruptions due to the global pandemic – which introduced a shift towards remote working and impacted the occupancy rates of commercial spaces.
Projects like the newly renovated Amahoro Stadium, Inzovu Mall, the Kigali Green Complex (KGC), a 35-floor tower poised to become the tallest building after completion, The Green City Kigali (GCK), a model community in the 600-hectare Kinyinya Hill, Equity Twin Tower Complex, and Zaria Court project are just a few of the many undergoing infrastructures showcasing the potential for On the consumer side, Said Ba’ba, an independent real estate agent operating in Kigali, notes similar sentiments.
According to him, the most sought-after properties in the real estate market are residential properties like apartments, condos and land for sale, especially for Rwandan nationals, and rental properties for foreign nationals.
On the residential front, there is a growing focus on affordable housing and middle-income housing projects, with the government of Rwanda playing a key role in enabling developers and homebuyers through initiatives like affordable mortgages and the availability of land.
Projects like Bwiza Riverside Development, a collaboration between the government of Rwanda and ADHI Rwanda, are expected to set a precedent for affordable housing schemes, providing a proof of concept for future developments.
For a real estate agent in Kigali, profits can come in two distinct ways. On one hand, investors might choose the path of constructing residential properties. And while this route may require a longer time frame to secure a sale, the financial rewards can be significantly larger.
On the other hand, some opt for the development of rental properties. This strategy often results in quicker occupancy by tenants, albeit with a smaller return on investment.
Ultimately, the investment’s choice falls on the individual investor’s goals and patience. Regardless of the path chosen, the Rwandan real estate market holds the promise of profitability.
For ADHI’s CEO, the real estate business is a profitable venture. Particularly due to the high demand for housing and the government’s supportive policies towards construction and development. The focus on affordable housing, leveraging innovative construction technologies, positions ADHI to capitalize on both government incentives and the growing need for residential properties.
Looking ahead, the real estate business in Rwanda looks poised for continuous growth, with more construction projects planned for commercial, residential, and industrial projects. The government has implemented policies encouraging foreign investment, such as allowing foreigners to own land. An effort that has enabled investors from abroad to acquire real estate with relatively few restrictions. This, in turn, has ensured an increase in demand for real estate in the country.
The commercial real estate market in Rwanda is also growing, with many international corporations setting up operations in the country. This has incremented a demand for office space, retail space, and industrial space.
The expansion into secondary cities and the development of infrastructure to support this growth present substantial opportunities.
Additionally, the government’s focus on promoting tourism and building the hospitality industry is expected to further boost the real estate market, providing more opportunities for investors. Rwanda’s real estate market is a growing industry with promising turn arounds for investors.
The government’s supportive policies and stable political climate have contributed to the sector’s escalation. With the market’s focus on affordable housing and innovative construction technologies, investors can capitalize on this widening demand in the real estate industry.
