An artist's impression of Kigali CBD Phase 1 core. 11 of the 20 plots in the zone are available for take up.

Region
Rwanda

Sector
Construction & Materials
Retail

Summary:

The Rwanda Development Board is seeking investors for real estate projets worth $3.5bn. The featured opportunity involves the construction of a mixed-use facility in Nyarugenge.

Contact
Christine Akuzwe

Email
info@rwandainvest.com

Tel
+250 510248
Fax
+250 510249

The investment opportunity to construct a mixed-use development is among the real estate investments worth $3.5-billion that the Rwanda Development Board is promoting.

Location: Central Business District – Nyarugenge

Project description: Modern class A office building with a plinth area of 10 000 square metres on 10 floors, divided into 80 units of 125 square meteres - 8 on each floor would be set on 2.5 acres
of land. The bottom three floors would be high-end retail space.

Cost of project: US$16 138 964

Equity Investment required: US$8 459 555

Sale price: US$18-million

Projected rental yield: 12%

Capitalisation period: 10 years

Incentives

Incentives include a 5% flat rate, 40-50% investment allowance, corporate tax reduction in employment and exports.

Investment insurance: Available through the Africa Trade Insurance Agency and Overseas Private Investment corporation.

Sector: Investment in the construction sector in Rwanda has increased significantly driven by population growth of 2.8%, urban growth - currently at 4% per annum, growth of the middle class and returning diaspora. The government projects that approximately 30% of the population will live in urban areas by 2020. Only about 5% of residents in Kigali own modern-style houses and demand in the capital city alone is 8 000 to 10 000 units per year. The combined demand for housing countrywide is estimated to be 25 000 units per annum. In the commercial housing segment, 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%. Rwanda's mortgage laws were recently amended following complaints made by prime mortgage financiers and real estate developers that the regulations were too strict and consequently holding back the uptake of home loans.

For more on incentives available to investors and further information on this opportunity contact the Rwanda Development Board.

Key contact: Christine Akuzwe
Investor Mobilizer Officer
Email: info@rwandainvest.com