Batsinda to get 300 affordable houses

The recent deal signed between Pan African Housing Fund (PAHF) and Kigali Batsinda Estate Limited to construct 300 housing units will play a huge role in helping the city authorities meet the growing demand of housing in the country, experts have said. Under the deal, a new residential housing complex will be developed in Kagugu cell, Kinyinya sector in Gasabo District. The project is expected to cost over Rwf11 billion and will help fast-track the construction of Izuba City, according to sources privy to the matter. PAHF is managed by Phatisa. The fund invests mainly in affordable and middle-income residential developments, and mixed-use areas, where both residential and commercial properties are combined. The fund often partners with local commercial developers to invest in equities to develop and manage the housing projects. Experts have applauded the development, saying it is going to contribute significantly toward achieving government’s ambitious plan to deliver more affordable houses to citizens. Development of Izuba City estate is critical to help ease housing demand in the city and suburbs. A study by the City of Kigali in collaboration with the Ministry of Infrastructure and the European Union (EU) conducted a few years back indicated that the city could face a housing deficit of up to 350,000 residential units in the next 10 years if nothing is done to address the current shortage. This housing shortage emanates from the growing rate of rural-urban migration, currently at about 4.8 per cent, creating need for more houses. The demand for decent homes in the city and up-country is also driven by the high rate of urbanisation, Liliane Mumpende, the Ultimate Developers Limited chief executive officer, said. With urbanisation growing at 4.1 per cent, and almost 17 per cent of the population living in urban areas, like Kigali, Musanze and Huye, investments in real estate development are essential to ensure sustainable supply of decent homes countrywide. Industry experts say as the government targets 35 per cent rate of urbanisation by 2020, it is critical to attract more investors into the real estate sector to meet the increasing demand of housing in the country. According to Charles Haba, the director of Century Real Estate, the rate at which the country is urbanising requires timely intervention, which calls for more investments in the housing industry to meet demand. “Therefore a project like Batsinda cannot be underestimated,” said Haba, who is also the chairman of the Association of Real Estate Developers in Rwanda. Haba (second right) taking real estate investors on a tour of Kigali Heights in Kimihurura, Gasabo District. (Timothy Kisambira) The 18-month project is, not only going to bring 300 housing units onto the market, but is also critical in making the sector more competitiveness, according to Haba. This will help close the gap between supply and the growing demand of housing in the country, he added. According to the city master plan, at least 43,436 social houses and 186,163 affordable houses are required annually by 2022, reflecting 54 per cent housing demand. Okomboli Ong’ong’a, the project team leader and Phatisa East Africa Fund partner at the PAHF, said Izuba City will be catalyst for the development of more affordable housing schemes in Kigali. “Izuba City will be a 300-unit housing complex, featuring a range of options, from one-bedroom starter homes to three-bedroom family residences,” Ongonga said in a recent interview with media in Nairobi, Kenya. He added that with full funding secured for the project, this co-investment with PAHF will enable Kigali Batsinda Estate Limited to deliver Izuba City rapidly and with ‘less risk’. “Phatisa recognises the increasing need for affordable, quality housing options for the rapidly expanding middle-class in Rwanda,” Ongonga noted. “We are committed to providing the much-needed equity to increase the supply of housing options into the growing City of Kigali through a range of innovative housing developments such as Izuba City, while securing an attractive return on investment.” Customers will have to part with between $50,700 and $93,000, depending on the size of the units. Other housing projects Already, KCB Bank Rwanda and Century Park Limited last year signed a financial partnership deal to fast-track the multimillion dollar Century Park Complex in Kigali. The bank pledged to invest more than $200 million (about Rwf145 billion) into the construction of the complex park hotel that will consist of 200 apartments, 16 supper luxurious villas, supermarkets, and two five-star hotels. The Vision City 2020 mega project in Gaculiro, Kinyinya sector in Gasabo District is expected to deliver to the market 504 housing units by this year, and a total of 4,500 units, including luxury villas and apartments later on completion. The project is being financed by the Rwanda Social Security Board (RSSB) and will have the capacity to accommodate over 22,000 people. business@newtimes.co.rw

News

Batsinda to get 300 affordable houses