Local and international developers turn to Rwanda’s affordable housing projects
Rwanda housing sector is filled with activity aimed at providing affordable homes to its citizens and offering opportunities for local and international developers. An increasing number of developers are embracing the affordable housing prospects set at play by the government of Rwanda.
Last year, the economy grew 5% most of it attributed to the expansion in the real estate sector over the recent years. Reports by the country’s national statistics body, National Statistics Institute of Rwanda shows that the sales and occupancy grew by 5% last year.
The government initiated the Affordable Housing Fund totaling to US$328 million, in 2017, to address the high costs of housing units, especially in Kigali. Developers, local suppliers and investors in the residential housing industry in the country are beneficiaries of the fund.
The fund was designed to provide improved access to housing mortgages and potentially facilitate housing finance entities in the provision of mortgages for developers.
In August, Development Bank of Rwanda (BRD) launched the Ndera Affordable Housing Project being to be implemented in partnership with Moroccan real estate developer, Palmeraie Development Group in a joint venture with the bank. The first phase of the project is expected to add 1759 units to Kigali’s housing stock
In September, a consortium of China’s Broad Homes Industrial International, Development Bank of Rwanda, Rwanda Social Security Board, BSMART Technology and the International Finance Cooperation (IFC) signed a Memorandum of Understanding to develop 10,000 affordable residential and commercial units in a deal worth an estimated US$200 million.
According to Centre for Affordable Housing Finance (CHAF), the Rwandan government has set aside 257.5 hectares of land for investors, to allow the construction of 22,000 units in the medium term.
Current housing supply in Kigali ranges from 800 to 1000 annually while the demand is about 31,000 units annually. A study by the European Union and Rwanda’s ministry of Infrastructure shows that Kigali could face a housing deficit of up to 344,000 homes by 2020.
Source: estatecloud.co.ke
