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December 10, 2019

Boom as property development sector registers US$540 million

US$540   million worth of property registered by RDB Local developers set to benefit from new sources of funding in 2018 Over US$1.6 billion in pipelines for next 2-3 years

Rwanda’s property market  registered investments worth US$540 million according to Rwanda Development Board (RDB).Reacting to statistics by RDB, experts say that the investment registered   last year point on an ongoing property boom despite skepticism from some quarters.

The growth in the property market is attributed   to increased funding sources and favorable business   environment for sector investors   according to property market experts.

Given the high growth prospects, the pipelines for property under development is expected to increase   this year   by threefold as opposed to last   year   fueled by growing appetite by investors.

In particular, new sources of funding   especially foreign direct investment (FDIs) is expected to complement traditional sources. The combination of the two   is expected to   fuel development of   healthy pipeline.

Official statistics by RDB  indicate that   the three major investments registered last year included Bugesera Airport Co Ltd-the concessionaire of the Bugesera airport project  worth US$398.6 million, Gasabo Investment Co Ltd-developer of Kimironko bus park worth US$89.0 million and Kigali View Hotel and Apartments Co. Ltd a real estate firm  worth US$53.2 million..

Clare Akamanzi
Clare Akamanzi ,CEO of RDB

RDB CEO Clare Akamanzi says;

“ Registered investments across board   in the last 10 years  doubled  from less than US$800 million to more than US$1.6 billion .This is a clear indication that Rwanda is seeing more and more of investment generation”.

Akamanzi adds that

“the 2017 registered investment coming at the back of increasing investments over the last 10 years is a direct result of the initiatives by the government of Rwanda through RDB to assist investors to fast track their investments on the ground”.

Real estate and construction both considered part of Rwanda’s property sector has emerged as the key driver and major contributor to Rwanda’s registered investments.The precise amount of gross floor area added into property market   by investors in 2017 is not readily available by the time we went to press.However, estimates have been provided to Property Magazine Rwanda by experts familiar with the matter.


The Kigali Heights touted by observers as Kigali’s most modern shopping mall located in Kimihurura suburb is part of a new huge rental space delivery to the local property market by bullish investors

Fred Omondi Ofuwa a practicing Kigali based architect   in last 5 years says; “investors are still bullish about Rwanda’s property development market. So it is reasonable to talk about between 500,000-750,000 Sq metres of new property space that   was brought to the market last year with over 80 percent being commercial and retail space while balance being residential .It is also reasonable to state that  over 2,000,000 sq metre of property space  is being developed as property pipeline  in the next 2 years”.

Ofuwa adds; “Built at a cost of approx. US$750   per square metre it is reasonable to corroborate RDB reports   by stating that investors pumped in over  US$540  million last year   into Rwanda’s economy and intends to pump into economy over US$1.6 billion in the next 2 to 3 years.”

Property development sector is traditionally funded through   equity plus debt funding from local banks. However, Rwanda is increasingly attracting   FDIs  backed by locally available sources.

A case in point is the Kigali Heights   a flagship retail property that delivered an additional   30,000 square metre of space in Kimihurura. The property that scooped a coveted continental award last year was   built using FDIs.

Muhima investment Champion (MIC)New  Mall open in Kigali

Given the scale of FDIs estimated at US$40 million   the Kigali Heights property   offers retailers and other commercial operators  top grade offices and a 9 storey rectilinear block along a boulevard frontage and a 6 storey block.

Experts say that in 2018 Kigali city is set to see construction works commence on newer and more exciting   projects both in residential housing   and retail and commercial space provision.

According to sector experts,the healthy pipeline includes the Amarembo complex   fronted by local investment firm ABG Group and Equity Towers   fronted by regional banker Equity Bank Group  both in central business district and the Savannah Creek residential development in Kicukiro district fronted by business magnate Dennis Karera.

This sort of pipeline  further signals  the continued bullish nature of investors in the property market.

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