Real estate sector is a key sector and a potential driver of future economic growth in Rwanda. This is due to the current the high demand for residential and commercial buildings. In 2012 the sector grew by 9 per cent and the trend is expected to continue for the foreseeable future. The growth in the sector has been driven by the following factors;
- population growth of 2.8 % per annum,
- An emerging and growing middle class,
- The increased Diaspora investment in Rwandan property markets and
- The government huge investment in infrastructure expansion and modernization of urban and rural infrastructure
Role of the Estate Sector
- It creates and offers employment
- The sector contributes significantly towards the country’s GDP
- The sector has a significant impact on the socio economic and political environment of the country
- The sector contributes to better quality and safety of infrastructure within the country necessary for the development of the country.
- The sector constructs houses to cater for the increasing population.
Legal and regulatory framework
Ministry of infrastructure
Ministry of infrastructure is to ensure the sustainable development of infrastructure and contribute to economic growth with a view to enhancing the quality of life of the population.
Rwanda Housing Authority
RHA is responsible for implementing the National Housing, Urbanization, construction and Government Assets management policies through coordination, conception, development, monitoring and evaluation of actions
- High cost of finance is slowing down the growth of the sector
- There is scarcity of appropriate funding for the sector
- The sector lacks trained and experienced manpower to manage the sector.
- High costs of construction materials and equipment which are imported into Rwanda
- Limited land is likely to be a constraint to starting and expanding a business in real estates
- A challenge of implementing capacity building and awareness program
- The income of majority of people is still too low to create effective demand