Kabuga hillside housing estate in KigaliEased mortgage financing, construction sector reforms spur investments
Persistent shortage of good residential houses is easing in the Rwandan capital
A 2012 study showed that
The shortage could ease as banks start offering loans covering as much as 90% of the cost of a house. The loans are insured.
The reduction in procedures is also expected to reduce time it takes to acquire the permits from 104 days to at least 25 days.
As a result there has been a surge in the number of local and foreign companies offering housing development services. The investors in real estate development attribute the rising trend to the willingness of the buyers to approach the banks and use the house they intend to buy as collateral.
The mayor of the City of Kigali Fidele Ndayisaba believes with the latest reforms in construction permitting, investments in construction will rise.
Urukumbuzi, which is owned by a Rwandan businessman
Nsabimana says he started Urukumbuzi estate in
Each house has a modern sewage system and the estate will have other facilities such as a min-market, health centre, a school, and entertainment facilities.
Urukumbuzi's model is different from long-time players such as the Rwanda Social Security Board (RSSB) and
KTM, a company owned by a
The company which had been impressed by the first phase embarked on the second phase of 40 homes and it has already has some on the market.
Another big developer, RSSB, a public institution which manages the sole public pension scheme and provides medical insurance to government employs and staff of some private companies, recently announced that it is investing in the development of three housing projects all in the city of
One of the RSSB's projects dubbed "Vision City" is the biggest residential housing project in
The estate is adjacent to another RSSB estate named "Vision 2020 Estate" and approximately 3km from the proposed
The project will consist of over 4,500 units in different configurations ranging from luxury villas to apartments to be built in 4 phases over 7 to 8 years. Phase 1 is made up of 504 units to be built on 33 hectares.
Construction works started in
Phase 1 of Vision City will also feature a town centre made up of retail shopping space, recreational and leisure spots (restaurants, sports facilities and club house), a 3 star hotel, office block and a medium size convention centre with a capacity of 1000 people. Construction of the town centre is expected to start in
The second project, RSSB says, will see development of houses for middle income earners in Kinyinya. This will be the second biggest residential housing project consisting of 3,672 units of 1 to 4 bedrooms set out in four storey apartment buildings. This layout will maximize the available 100 hectares marked out for development of the estate, resulting in a housing density of approximately 60 units per hectare.
Kinyinya housing estate will have commercial, entertainment, recreational and public transport amenities for use by its residents. It will be built in three phases over 7 to 8 years. The units will have lower price points than Vision City units and will cater mostly to middle income buyers.
However, residents will still enjoy the same tranquility, modern housing and amenities that will be found in the higher priced Vision City. The total expected cost of phase 1 of Kinyinya is
RSSB also plans to construct 100 low cost housing units on the outskirts of
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