It is the beginning of the new year, and we look forward to 2023 with optimism. The new year is arguably the beginning of the post-covid era, and many look to kickstart and elevate their economic well-being.
An increasingly recommended habit is to set personal and professional goals at the beginning of the year. One goal that features prominently is owning a property in the fast-developing city of Kigali or the rural areas akin to the shores of the magnificent lakes. For Rwanda, both those living in the country and members of the diaspora.
The growing demand for residential homes inspired Rwanda's booming real estate market. According to the available studies, there is a need for 10,000 housing units each year. As a metropolitan city, the urban population is increasing, putting pressure on land use and driving land prices in Kigali through the roof.
Despite the increase in the cost of purchasing undeveloped land, it is still a worthwhile investment if one is to go by the market trends. One would not rule out the drafting of more new zoning guidelines to provide for apartment-style living, just like in other cities facing land pressures.
When we get to that point, buying land to build your home in Kigali will be complicated, but if you have deep pockets to put up apartments, the future is in your hands. But before we get to that point, young Rwandans should take advantage of the opportunities while they last.
Whenever a discussion of living in flats arises among Rwandans, we are always skeptical; we talk about how much we want our privacy, how small they are, or the fact that you must fit in a space designed for you. Today, apartments are still considered a luxury, but how many trends begin this way? Young Rwandans today are leaving their parents’ homes earlier than ever, as their quest to be independent is starting early. The journey to having apartments as everyday life in Kigali is not decades away; it is fast approaching. I mean, look around and read the signs; there was a time the size of a plot of land used to be 600 sqm and above for one residential house; if you own the same piece of land today, the city of Kigali asks you to put up two housing units. Today's standard plot is 300 sqm, which is half that size. The size or the increasing costs should not deter your ambition to buy land. Just focus on these three tips, and chances are you will be happy with your decision.
1. Planning
Real estate, like any other goal you set, requires planning. We often hear stories of how land is expensive and construction is a headache and too costly. The reality is that any ambitious task is always challenging. The planning phase involves saving money and doing research. Whether working on a residential or commercial property goal, do your research. Study the prices for different properties, understand what makes an area more expensive or affordable, and seek insights into the upcoming developments of a particular site. Take time and visit the Kigali neighborhoods, talk to people who have been through the process, and observe the trends.
2. Understand the master plan
The city of Kigali has developed a master plan to guide construction in the city. If you decide to invest in real estate, it is essential to understand the master plan. Several times, I have met people who rushed into buying land for residential homes only to find out later that the land is earmarked for a different purpose. Looking at what is planned for the land you intend to acquire is essential. You can do this by visiting the Kigali Master plan portal and visiting the land centers spread across the local government offices. Be wary of the land brokers who spice up properties with falsehoods like, ‘a tarmac road will be under construction in the coming month,’ or ‘someone else wants to pay in the next hour, so decide quickly.’
3. Prioritize the location
In real estate, one of the most critical elements is the location of your property; we all know the prime areas of Kigali and how expensive those neighborhoods are. The idea of an excellent area is achieved with the proximity to the CBD, the view, road development, and access to water and electricity, meaning more prime areas will be born.
The cheat sheet to this is a visionary mindset, understanding where the city is expanding towards or what is the subsequent best development. One important recommendation is – to aim for the beautiful views of Kigali. The phrase, the country of "a thousand hills” has a background to it. The Kigali skyline, especially at night, is worth the price. Not long ago, hills like Rebero, Bumbogo, Norvege, and Kinyinya were no-go areas. Today, these hills are occupied by beautiful mansions – the owners were visionary. And finally, do not focus too much on the areas currently being developed; those areas are already expensive and might be beyond your budget. Kigali is a fast-growing city that is expanding on all sides. Think and plan with the future in mind.