The Rwanda Housing Authority (RHA), city authorities and other stakeholders say the present housing issue is no cause for alarm as there are new initiatives in the pipeline to bring more housing units on the market particularly affordable homes.
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Leopold Uwimana, the affordable housing division manager at the Rwanda Housing Authority, said the government is collaborating with developers and other stakeholders to reduce the cost of decent homes.
He added that an affordable housing development fund will also be put in place to enable investors in affordable housing get low interest loans. Home buyers will also be able to access mortgages at low interest.
According to a 2012 housing market study conducted in the City of Kigali, 340,000 new housing units are needed by 2022. 86% of these should be affordable housing and mid-range housing, 13% social housing, and less than 1% to be premium housing. At least 34,000 housing units are required annually to meet this demand.
The Ministry of Local Government is working with various districts in the City of Kigali to help them build capacity and meet requirements of issuing municipal bonds to finance affordable housing projects instead of waiting for public funds.
According to Uwimana, the project targets low-income earning first-time home buyers. He said government is negotiating with Moroccan investors who will invest $68m for the construction of 5,000 affordable houses by 2018.
RHA is building affordable houses that will cost $7,200 for a self-contained unit with one bedroom, while those of three bedrooms will go for$21.600. 2,700 housing units are being constructed at Rugarama in Nyamirambo, while construction works for another estate of 60 houses in Kabuga at Ndera sector start in June.
Uwimana attributed the high cost of homes to most real estate developers who target high profits of up 40% of their investment. Moreover, the affordable housing fund being put up is set to address the issues of local investers’ inability to invest in the sector.
Victor Ombima, an architect at Architectural and Allied Services Limited, said the cost of affordable homes depends on the location of the houses, adding that in Kigali one has to part with $36,000 for house with one living room, two bathrooms and a kitchen.
