There are many business and investment Opportunities in Rwanda Construction Sector because very few real estate developers are currently in Rwanda.
Overview of Real estate and Construction in Rwanda
Real estate is booming
• In 2007, Rwanda’s development and public works sectors experienced a 10% growth creating a shortage of fully functional office space and residential housing
• From 2003-2008,investment in the construction sector grew from $100M to $350M. In 2008, revenues from the general construction sector increased by 51% driven by:
• Population growth of 2.8% combined with urban growth currently at 4% per annum
• Growth of the middle class
• Diaspora returning to Rwanda
• As a result, there is also a shortage in construction material.
Rwanda imported $64.6M of construction materials in 2007 and $140M in 2008
This includes 100% of steel and a majority of other construction materials
Residential real estate
• GoR projects that by 2020 approximately 30% of the population will live in urban areas. To date, only about 5% of residents in Kigali own modern-style houses.
• In Kigali alone, demand for housing is 8,000- 10,000 units per annum.
The combined demand for housing countrywide is estimated to be 25,000 units per annum
Commercial real estate
• The recent increase in foreign investments has created a shortage of upper end office space with fully equipped telecommunications, utilities, and power.
From 2003 to 2006 rent on these buildings increased between 50-200%