Affordable Housing Market in Kigali, Rwanda

Rwanda is the most densely populated and fastest growing country in Africa with a growth rate of 10.7%. The country's total population is projected to be 13,252,272 in 2023, of which about 3,081,153 are expected to be living in urbanized settlements and more than a half living in Kigali City (RPHC4, NISR, 2012).

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Rwanda “has prioritized urbanization as an engine of socio-economic development and sustainable human settlement with a target to reach 35% of urbanization rate by 2024 from 18.4% in 2017”. “…It is believed that by pursuing the urbanization agenda, Rwanda will be in a good position to transform its economy from agriculture-based to more industrialized and service-based economy…”. “…this is in line with government vision 2050 where service and industry sectors are expected to contribute 60% and 30% of GDP respectively by the year 2050”6.

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The rebirth of Rwanda, after the 1994 genocide of Tutsi, is remarkable in many ways. One of them is the extraordinary effort to plan the present and future development of the City of Kigali.

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According to Rwanda, Vision 2050, urbanization is rapidly evolving and presents many opportunities for increased access to markets, skills and employment among others. The new focus will be on identifying and creating synergies between the critical elements of urbanization that create agglomeration and enhance the socioeconomic benefits of urbanization and with more than 70% of Rwandans projected to be living in urban areas.

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A widely acknowledged record of more than two decades of strong economic growth; including a three and half-fold increase in per capita income since 1994, has placed Rwanda among the fastest-growing economies in Africa and the world. Having launched its development with a measure of success, Rwanda is now keen to forge a future of security, prosperity, and modernity. Sustaining high rates of inclusive economic growth is at the heart of these ambitions. Future aspirations in this regard are high, with Vision 2050 aspiring to achieve upper-middle-income status by 2035 and high-income status by 2050. These aspirations translate into average annual growth rates of more than 10%.

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Housing is an integral element of a nation’s economy. Its backward and forward linkages with other parts of the economy closely bond people’s needs, demands and social processes with the supply of land, infrastructure, building materials, technology, labor, and housing finance. These linkages allow housing to act as an important engine for sustainable development and poverty reduction in both society and the economy. Operating within an overarching governance framework, defined by institutional and regulatory systems that enable society to build homes and neighborhoods, housing has an inescapable physical manifestation through the building of houses, dwellings, shelter, accommodation, site & services and/ or residential units. Without a functioning housing sector, urban centers cannot be established or developed. A functioning housing sector offers appropriate, affordable housing and sustainable patterns of urbanization, which are critical for the future of our ever-urbanizing planet.

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Rwanda capital City, Kigali is at the center of Rwanda’s development. The City’s vision of being ‘The Centre of Urban Excellence in Africa’ which emanates from people’s participation in the planning process sums up to ride the mission ‘To Build and Sustain a City of Character, Vibrant Economy and Diversity through Strong Partnership with Stakeholders to Provide Responsive, Rapid and Effective urban development. Kigali City is a fast growing, safe, clean and dynamic city which looks to the future with confidence and a planned approach to growth. A key element for the sustainable growth of Kigali is the provision of decent housing. To that end, we are committed to build an affordable low and mid-range real estate, in Kicukiro District, Rebero Site.

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According to the Housing Market Survey on affordable housing by the City of Kigali and development partners, the annual demand for decent homes in the city is 32,000 units. However, supply of such houses is low, which has led to growth of slums and other unplanned settlements in areas such as Gikondo; Gatenga, Biryogo, Nyarugunga, Nyabisindu, and Gatsata.

The report indicated that the City of Kigali will require 458,265 units by 2025 for all categories, including affordable housing, mid-range housing, and premium housing. The City of Kigali requires over 32,000 housing units per year to meet demand for decent homes. The city and the country generally face a challenge of providing affordable homes to majority of the citizens as many of the real estate projects target the high-end market.