The newly ushered reforms championed by Rwanda Development Board(RDB) and City of Kigali(CoK) in approval process for attainment of construction permit is definitely very good news for property developers.
The reforms is meant to support on-going boom in the local construction sector according to RDB and CoK. For instance, the reduction in time and money needed to attain permits from more than 100 days to less than 50 days and from Rwf 150,000 to less Rwf 60,000 among other reform packages,will go a long way to facilitate developers to cut time needed to carry our actual construction. Experts in the property sector who are familiar with the matter will tell you how the preparatory activities prior to attainment of permits is a time consuming process with a lot of back and forth between consultants and the authorities at one stop centre at CoK. It comes as a relief to the technical consultants that time it takes to attain consensus needed to pave way permits has been reduced drastically. Read about this very good news to property development sector in the news analysis coverage of 9th edition of The Property Magazine Rwanda(PMR).
Let us put the reform package into context. Experts familiar with the pipeline of projects in the property sector state that over 2,000,000 sq metre of property space is expected to benefit from the newly unveiled reform packages over the next 2 years.
Building 2,000,000 square metres of space to be built at a cost of US$750 per square metre loosely translates into over US$1.6 billion worth of property that are expected to benefit from the new reforms.
Closely related to the on- going boom is the opportunity in building affordable housing to Kigali city and other secondary cities of Rwanda. The issue of affordable housing is actually the biggest investment opportunity in property development sector in Rwanda as we speak.
In the context of Rwanda, the issue of supplying requisite stocks needed estimated at over 30,000 units annually over next 5 years is to be driven by at least 05 major public institutions.
PMR highlights in this 9th edition the work by the top leadership in the ministry of finance and economic planning(minecofin), Rwanda Social Security Board(RSSB),Rwanda Housing Authority(RHA) and CoK in the provision of affordable housing.
Just like in its 8th edition, PMR has serialised the activities of these public institutions through their leaders in an article entitled “the Movers and Shakers in property development sector”.
The leaders and institutions they lead that are very likely to impact affordable housing in the next 2-3 years includes cabinet minister Dr Uzziel Ndajimana, RSSB deputy director general John Bosco Sebabi, RHA director general Eric Serubibi, Cok Mayor Marie Chantal Rwakasina and RDB COO Emmanuel Hategeka.
For starters, an Israeli investor is grabbing the opportunity in the market by announcing that it is meant to construct over 10,000 units.
While the estimated investment cost expected to be shouldered by the Israeli investors was kept under wraps during the public announcement, technical experts say that the estimated cost of constructing and selling 10,000 units is approx. US$500 million. PMR feature story for 9th edition covers the pressing issue of stabilizing cement prices in the wake of the property boom. The issue of stabilizing cement prices a key ingredient in construction is of concern to property developers. PMR thus lauds the timely intervention to rope in prices from skyrocketing as it must have been good news to developers.
We say so due to fact that the prices in the last 4 months skyrocketed from Rwf 8,000 to Rwf 13,000 giving room to speculative tendencies by traders. This sort of situation forced the government to issue an advisory that set prices to Rwf 10,000 for premium grade cement and Rwf 8,700 for general purpose cement.
The cement stabilization going forward is expected to be spearheaded by the local cement maker Cimerwa PPC Ltd in the wake of its factory upgrade and annual maintenance.