Two mega commercial complexes started operations recently in different city suburbs of Kigali depicting confidence in Rwanda economy. This comes barely less than six months since the Kigali Convention Centre and Kigali Marriott Hotel were commissioned.
With shortage of quality office and commercial space in Kigali, these multimillion-dollar properties, apart from changing Kigali skyline, could help in boosting the local economy and commercial housing market. Analysts in the housing sector also say the two commercial complexes are a reflection of what happens when local and foreign investors form partnerships.
According to Liliane Mupende, the Ultimate Developers Limited chief executive officer, the recently opened mega commercial structures highlight the investment opportunities and synergies in the City Master Plan, and the overall country’s vision that the private sector must continue to explore.
Also read:US$40m Kigali heights in Rwanda officially opened
She says the rate of urbanization in Kigali needs quick intervention and more investments in the housing and property facilities to match the demand. Rwandan government is targeting 35 per cent rate of urbanisation by the year 2020 from the current 6.7 per cent.
Chairman of the Rwanda Real Estate Developers Association Charles Haba, says these developments will help take care of the low supply of quality commercial spaces required currently.
Haba adds that commercial buildings, like Kigali Heights and Champion Investment Corporation Complex (CHIC), set the trends in terms building standards and quality in the local property market.
The Kigali vice-mayor in charge of finance and economic development, Alphonse Nizeyimana, says these developments should be an inspiration to other private sector developers to exploit opportunities that are created by the city Master Plan.
Boosting investor confidence
The inflow of big foreign direct investment (FDI) into the real estate industry is expected to increase competition in the industry and attract more foreign investors into Rwanda as the local economy expands.
Rwanda currently ranks high in the annual World Bank doing business reports as one of the preferred destinations to do business in Africa and globally.
The nation was ranked second-best on the continent in the ease of doing business by World Bank doing business report 2016.
