Real estate developers and public sector representatives on Friday, June 14, convened to discuss investment opportunities and challenges, with the aim to enhance development in the real estate sector.
The event organised by Mister Roof Rwanda, a company specialising in the supply and installation of construction materials marked the launch of ‘Rwanda’s real estate going through the roof,' a campaign celebrating the sector's notable achievements.
The event featured insights from various experts, developers, and financial institutions, including a fireside chat with Shelter Afrique Development Bank, to explore financing opportunities.
Simon Sondern, Chief Executive Officer of Fortico Holdings, an investment company that owns and invests in real estate assets in East Africa, said the City of Kigali’s growth, with the population expected to triple by 2050, presents an opportunity and responsibility for the real estate sector to provide adequate housing and office space.
Sondern highlighted how perceptions of Rwanda have transformed over the past decade, noting, "The narrative about Rwanda has completely changed in just 10 years."
He explained that the biggest challenge now is convincing buyers and investors that the country's success is real: "It sounds almost too good to be true. We highlight Rwanda's stable government, booming economy, high demand for housing, clean land titles, and more than 10 per cent yield on investments, but it's hard for people to believe," he added.
He emphasised that Rwanda offers one of the best opportunities in the global real estate sector, particularly in Kigali, citing the supportive legal framework and proactive government efforts as key factors in creating these opportunities.
Samuel Dusengiyumva, Mayor of City of Kigali, gave a presentation on investment opportunities in Kigali, noting the city's growing need for housing and jobs by 2050 due to its expanding population.
He mentioned that the city has plots available for development in the central business district and prime lands, including a 19-hectare cleared land for villas and high-rise buildings. He emphasised the ease of acquiring land and the rapid development timelines.
Dusengiyumva said that efforts are being made to provide affordable housing, especially for low-income earners. One initiative involves transforming informal settlements into modern housing units, benefiting both investors and vulnerable families.
"In Mpazi area, we are bringing up 1,000 housing units. We collaborate with landowners in informal settlements, offering to build apartments on their land. They can sell the remaining portion, while our focus remains on providing homes to vulnerable families without commercial intent.”
The mayor underscored the city's commitment to supporting investors through streamlined processes and encouraged potential investors to engage with city officials for assistance.
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Discussing the future of real estate in Rwanda, Daniel Mehari, Managing Director of DND Developers Real Estate, expressed optimism, saying that with private sector involvement, the future looks very bright over the next 5-10 years.
He emphasised the significance of the mayor’s presentation, stating, "The mayor's presentation is good news for real developers. In Kigali, property prices have been rising due to speculation, making it difficult for developers. People have been buying land without plans to develop it, causing prices to continually increase, which also makes it more expensive for buyers."
Fatima Soleman, CEO of Mister Roof, explained that they organised the event because they work with a wide range of developers, from small-scale beginners to large-scale commercial developers.
Soleman discussed the challenges in financing and accessing affordable construction materials due to logistical constraints in Rwanda.
"Efforts by developers like Rwanda Social Security Board (RSSB) aim to improve the construction value chain by increasing manufacturing capacity. The event also addressed issues with the previous Kigali City Master Plan, noting improvements in the current plan that promotes real estate development.”
Louise Kanyonga, Deputy CEO of RSSB, stressed collaboration within Rwanda's construction sector, advocating for local capacity-building and knowledge transfer.
"RSSB is a major player in the real estate and construction sector, managing assets of over 1 trillion RWF, 450 billion RWF dedicated to real estate and construction alone. We are deeply engaged and a significant force in this industry," she added.
Additionally, Kanyonga emphasised inclusivity, aiming to ensure all Rwandans benefit from these developments through projects like Vision City and Heza Estate in Kigali, providing quality housing for citizens.
She highlighted the importance of local expertise and technology in reducing housing costs, aiming for sustainable, affordable housing solutions accessible over extended payment periods.