Landowners should be open to the idea of partnerships with banks and individual investors to jointly develop idle plots of land in strategic city locations so as to hold on to their properties, a housing model consultant has told The New Times.
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"It&039;s all about setting up partnerships with banks and individual investors to develop lands in strategic locations. We have examples when doctors partnered with landlords and they now have a huge hospital," said Jean-Claude Benimana.
Benimana also suggested that the government should help landowners secure investors for such partnerships.
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"I would advise the government to make public calls for investment in available lands and the first deals be between the landlord and the investor then the government intervenes only when they don&039;t agree," he noted.
This comes after landowners around Amahoro Stadium were given a two-month deadline to redevelop the area to avoid landownership termination under the enforcement of the 2024 ministerial order on temporary land requisition and termination of land ownership contracts.
The regulation says that land intended for agriculture, livestock, and forestry, which is larger than five hectares that remains unexploited may be subject to temporary acquisition by the state.
The order, signed by the Minister of Environment, Valentine Uwamariya, aims to enforce the 2021 law on land. The City of Kigali and district authorities may request the minister to order the temporary requisition of unexploited land if reports indicate that the land has not been used for one year without reasonable cause, or if there have been official letters from decentralized entities asking the landowner to utilize the land, but the landowner has failed to do so without justification. During six consecutive months, authorities must request the landowner to exploit the land or provide reasons for not doing so.
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If the landowner provides a reasonable explanation, the City of Kigali or the district may request that the landowner sub-lease the land to someone who can exploit it. If the landowner neither sub-leases the land nor provides a valid reason, and the land remains unexploited, the City of Kigali or the district will include the land in a report of land that must be requisitioned.
Temporary requisition may be cancelled or suspended if, during the notice period, the landowner provides a reasonable explanation for non-exploitation and shows willingness and ability to exploit the land with a project to be implemented within one year or sub-leases it to another person.
Benimana added that property owners should also be open to effective use without any resistance.
"The effective use of land is compulsory. Considering individual interest in land, compulsory use of land would only be handled by the government. Let me also note that people are forgetting that rights to land are only full if effectively used and if not, we need to check again our land titles and remember we have signed land lease not ownership. Under these terms, we shall be ready to welcome effective use of the idle lands once the leaser advises so," he added.
Incremental development
Albert Rene Nahimana, a civil engineer and land valuer, said that there is need for incremental development, a real estate strategy focused on unlocking land value by converting single-family homes into multi-unit properties, such as duplexes or triplexes, or by adding accessory dwelling units (ADUs). An accessory dwelling unit is a small, self-contained residential unit located on the same plot as an existing single-family home.
Kigali&039;s updated master plan introduces a flexible, incremental approach to development, allowing for the improvement of unplanned settlements without requiring mass relocation of residents.
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"Incremental development intends to allow flexibility in the development of the city and housing construction, responding to local conditions, desires, aspirations, and financial capabilities of stakeholders, including the government. It provides an opportunity to regulate ongoing informal development processes, ensure efficient provision of infrastructure and service delivery and rationalize land use," Nahimana explained.
He said all affordable housing programmes shall include financial mechanisms such as subsidies, micro credit, and loans, to help households finance and incrementally build their houses.
"Houses, commercial or mixed-use buildings, must be allowed to be constructed in stages as per the financial situation and should be allowed to be constructed and upgraded in stages as per the owners’ financial situation.”
"The City of Kigali at its discretion, and in collaboration with Rwanda Housing Authority, may provide technical and financial support through pre-approved designs, government subsidies, micro-credit to such families who cannot undertake any action on their own to obtain even the basic housing components," he added.
Fair compensation
On the other hand, landowners have emphasized the need for fair compensation for those unable to fund the redevelopment themselves.
"If I am not financially capable to be able to develop my land according to the deadline, the government should give fair compensation so that capable investors redevelop the land," said Emmanuel Hitayezu, a resident of Gasabo District.
Byegeka Geofrey, a real estate developer, highlighted issues with the current "complicated” system for acquiring construction permits.
"Permits expire in one year, and renewals only grant six additional months. It is unrealistic to expect developers to meet these deadlines, especially when [applications for] construction permits are repeatedly declined,” he explained.