The number of property developers and architecture firms registered in the country over the last decade has grown significantly as property entrepreneurs seek to capitalize on this promising sector.
Johnson Bigwi is the founder of Futuristic Design Group (FDG) Africa, a local company which offers engineering services with a special focus on urban development. He told IGIHE in a recent interview that the sector has experienced exponential growth over the last decade, particularly in the architectural design of buildings emerging in Kigali and other parts of the country.
A graduate of Jomo Kenyatta University of Agriculture and Technology (JKUAT) in Nairobi, Bigwi ventured into real estate in 2014. At the time, he observed that most buildings shared a similar aesthetic design and this presented him with an opportunity.
'This gave us the chance to offer alternative, well-orchestrated designs and we have since grown to offer other services, including surveying and construction, to cater for the growing demands on the market,' Bigwi said.
Despite the setbacks brought about by the Covid-19 pandemic, Rwanda's economic is on a steady trajectory. This has led to a rising middle class with increased disposable income, creating a fertile ground for diverse real estate investments.
Boris Muhirwa, a project manager for DND Developers in Kigali, concurs that the demand for luxury apartments is on the rise.
A civil engineer with close to 15 years of experience, Muhirwa is currently overseeing the refurbishment of the Royal Golf View Apartment Hotel in Kigali's upscale Kacyiru neighborhood. The 10-storey structure will encompass residential apartments, retail spaces, and a hotel upon completion.
He revealed that while the project is only a month old and has a two-year timeline, several clients have already placed bookings.
'Previously, people were hesitant to pay upfront for something they had no input be it with design or execution. However, the industry has evolved, and clients now have more confidence in developers, allowing for installment payment plans,' Muhirwa said.
Beyond the traditional residential and commercial infrastructure, the Rwandan real estate market is experiencing robust growth fueled by a number of factors such as increased accessibility to financing through local financial institutions.
Government policies
Prince Hoffman Banamwana, a real estate marketer and founder of Quick Homes Rwanda, believes that investor-friendly policies and unmatched security have been instrumental in attracting foreign investment, thereby stimulating growth in the sector.
'The government policies have ensured one thing beyond reasonable doubtâ€" safety,' says Banamwana, a social sensation renowned for his vibrant YouTube channel where he showcases houses for potential clients to buy.
According to him, once people feel safe, they are bound to stay or even engage in productive activities in a given area.
Government advertising initiatives such as Visit Rwanda have also opened up Rwanda's tourism sector, promoting the hotel and hospitality industry.
'The government is doing us a great service by advertising the country through Visit Rwanda campaigns, such as the partnership with Arsenal and other teams, which attract people to visit. Once here, they often fall in love with the country and want to stay,' he added.
Banamwana observed that infrastructure development makes Rwanda an attractive destination for real estate investors. Investments in transportation, energy, and telecommunications are improving the business environment and supporting real estate development.
Beyond the current improvements, there is widespread consensus that there are substantial investment opportunities for real estate developers, particularly in affordable housing and high-rise buildings.
"The current market is unaffordable. It's expensive across the board. Anyone investing in affordable housing here would tap into a significant market that could be supported by government initiatives," Banamwana stated.
By and large, there's a growing need to explore high-rise buildings due to limitations of available land, the demand for modern and amenity-rich living spaces, and the desire for efficient and sustainable urban development.
Wycliffe Nyamasege
Source : https://en.igihe.com/business/article/underlying-forces-shaping-rwanda-s-real-estate-market
