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Kigali lures real estate investors
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By Harold Ayodo
A drive along Kigali, Rwanda reveals a bursting real estate sub-sector barely 16 years after a genocide tore the country apart.
Modern residential and commercial buildings are today a stark contrast of the wanton destruction of property that was witnessed during the violence.
Private developers have constructed palatial homes on the hills as most middle and low-income earners reside on the foot of hills. The architectural designs of homes in secluded compounds are breathtaking.
Such homes are found within gated communities in Gisozi, Kacyiru and Gaculiro, Kimihurura, Nyarutarama, Remera and Kagarama
Investors in real estate started scrambling for space in Kigali after the United Nations Habitat granted it the Habitat Scroll of Honor Award in 2008. This is the most prestigious award given by the UN in recognition of work carried out in human settlements development.
The city was honoured for her many innovations in building a model city symbolised by zero tolerance for plastic waste. Other characteristics are improved garbage collection and reduction in crime, making it one of the safest cities in the continent.
First in Africa
A residential building in Kigali’s CBD. [Photos: Harold Ayodo]
Kigali was the first city to win the prestigious award in Africa as many capital cities in the continent struggle with pressures of urbanisation.
Streets and pavements in Kigali are beautiful; the public transport has been upgraded and sewage system improved. As for slum upgrading the city is on course.
"In just a decade, Kigali has become a model city for many countries," says a report by UN Habitat.
Private developers could be attracted to Kigali following the developed infrastructure like roads and friendlier investment opportunities to foreigners.
Recently, Vice Mayor in charge of finance and economic development Alphonse Nizeyimana made the prospects of investment more inviting. He revealed that the necessary approvals to register land and start construction would now take 30 days down from seven months.
The reform follows a cabinet resolution to start a construction one-stop-centre to facilitate ‘big’ investment projects that require land and building documents.
"Investments in the city are on the rise and are boasting revenue flow … we receive 20 to 40 investment project proposals every month," Nizeyimana says.
"Currently there are 15 projects awaiting approval in which one is expansion of the Rwanda-French Cultural Centre to 12 floors," he says.
Foreign presence
Today, high-rise buildings housing the increasing foreign firms in the cleanest capital city are visible landmarks. Kenya has a strong presence at the heart of the city with investors like Kenya Commercial Bank (KCB) and Nakumatt Holdings taking root.
Hotels like the Laico Umubano and the Top Tower along the Boulevard de l’Umuganda are among the modern commercial premises. However, flats, apartments, townhouses and penthouses which are in vogue in upmarket areas in Nairobi, are rare here.
Private developers are scrambling for space in the area keen on capitalising on the housing shortage. Statistics from the National Bank of Rwanda show that an estimated 25,000 new houses are required to meet the demand for urban housing.
Private developers in Kigali are mainly reliant on imports of roofing tiles, steel, aluminium, wood, glass and sanitary fittings. Others are electrical equipment and fittings, pumps, tanks and sewage systems as most buildings have assorted architectural designs.
Read all about: Rwanda real estate
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