As Kigali expands and attracts more residents, businesses, and investors, concerns are growing over how the city can keep housing and commercial spaces affordable while sustaining urban growth.

In recent months, rent prices for homes and business premises have risen across several parts of Kigali, driven by growing demand, rising construction costs, and increasing pressure on urban land.

But urban planners and construction experts say the focus should move beyond rising costs to long-term solutions that can stabilise the market and expand access to affordable housing.

ALSO READ: Key things to know about Nyabisindu ‘rehousing’ project

They note that Kigali’s situation is not unique. Fast-growing cities across Africa are facing similar pressure as urban populations increase faster than housing supply.

Innocent Nshimiyimana, an assistant lecturer at the University of Rwanda, says rapid urbanisation and population growth are among the biggest drivers of the trend.

"The city continues to attract businesses, students, and professionals faster than affordable housing is being built,” he says.

He adds that increasing land values, infrastructure investments, and rising construction costs have pushed up property prices, costs that landlords eventually transfer to tenants.

At the same time, developers are increasingly investing in high-end residential and commercial projects that promise quicker financial returns.

"Such investments support economic modernisation, but they also reduce the stock of affordable housing and commercial spaces for middle and low-income residents and small businesses,” he explains.

ALSO READ: A three-pronged plan to scale up affordable housing

Still, Nshimiyimana says the solution is not to discourage investment, but to create policies that balance private sector growth with affordability.

Expanding affordable housing

One of the key proposals is accelerating affordable housing development across Kigali and surrounding areas.

Architect Johnson Bigwi of Futuristic Design Group says more emphasis should be placed on housing models that accommodate multiple families on the same residential plots instead of standalone homes occupying large spaces.

"People can build homes where they also accommodate one or two other families and become landlords themselves,” Bigwi says.

According to him, such approaches can maximise land use while increasing the number of available rental units within existing neighbourhoods.

He also believes large-scale affordable housing projects can transform communities.

"Once hundreds of families move into one neighbourhood, businesses, schools, markets, and transport services follow naturally. It creates life around those areas,” he says.

Government-backed affordable housing projects have already started emerging in parts of Kigali, but experts say larger investments and stronger public-private partnerships are still needed to meet growing demand.

ALSO READ: Govt targets 1,300 social rental housing units by 2029

Nshimiyimana says incentives for mixed-income housing developments and improved land management systems could also make housing delivery more efficient and equitable.

Improving transport and secondary cities

Urban planners also argue that improving public transport connectivity between Kigali and peripheral areas is essential.

Many residents continue seeking housing in already congested neighbourhoods because they are closer to jobs, schools, and essential services.

ALSO READ: 10 new projects that could fix housing shortage in Kigali

Bigwi says expanding reliable transport systems into outer areas would make living farther from the city centre more practical and attractive.

"If areas farther from the city, like Gasanze and Muyumbu, have enough transport, schools, commercial activities, and services, people will be comfortable living there,” he says.

He notes that several emerging neighbourhoods outside central Kigali still lack the transport connectivity enjoyed by areas closer to the city centre.

Urban planners say this aligns with Rwanda’s broader strategy of developing secondary cities to ease pressure on Kigali.

By expanding economic opportunities and social infrastructure beyond the capital, more people could choose to live and work outside Kigali while maintaining quality livelihoods, experts say.

ALSO READ: How rent-to-own affordable housing model works

Promoting cost-effective construction

Construction experts also believe greater use of locally available building materials could help lower housing costs over time.

Many finishing materials used in modern construction are imported, exposing developers to global price fluctuations and currency pressures.

Bigwi says increasing the use of locally produced materials would make construction costs easier to manage and reduce dependence on imports.

Similarly, engineer Emmanuel Nsengiyumva from Avi Construction and Engineering Services says rising fuel prices and transport costs have affected nearly every stage of construction, from materials to labour.

"When construction costs rise, property owners naturally calculate how they will recover that investment, and that can eventually affect rent prices,” he says.

However, he argues that solutions should focus less on controlling rent directly and more on helping people find housing options that match their income levels and needs.

He notes that many tenants continue seeking large homes in expensive areas even when more affordable options exist in developing neighbourhoods.

"Someone may move from a four-bedroom house to a smaller house that matches their financial capacity better,” he says.

He also points to discussions around shared housing models and more compact urban living arrangements as possible alternatives for reducing pressure on the rental market.

Formalising rental agreements

Business owners and tenants say stronger rental agreements could also help reduce instability and disputes.

Andrew Gatera, who operates the Gishushu-based One Cup Coffee Shop and G Step Tours, says many conflicts arise when landlords abruptly increase rent after businesses become successful.

"There has to be proper contracts which clearly say, for example, that rent will not increase within a certain period or that the tenant can stay for a defined number of years,” he says.

Such arrangements, he argues, would provide greater predictability for both landlords and tenants without requiring direct government control over prices.

Rwanda’s tenancy laws already provide guidance on contractual obligations and notice requirements, though experts say many agreements remain informal or verbal, leaving tenants vulnerable to sudden changes.

Balancing investment and affordability

Property owners, meanwhile, argue that rent increases are not always driven by greed.

Seraphine Mwamini, who owns a commercial building in Remera, says maintenance costs have risen significantly in recent years.

"We wouldn’t be increasing prices if things remained stable or constant,” she says.

"My building is mainly occupied by salons, which use a lot of water. I recently did repairs, and it is not easy.”

Her perspective reflects the balancing act facing policymakers as Kigali grows: encouraging investment in housing and commercial infrastructure while ensuring affordability for residents and businesses.

The National Bank of Rwanda has also repeatedly warned against pricing ordinary domestic transactions in foreign currencies, including rent payments in US dollars, saying transactions within Rwanda should primarily be conducted in Rwandan francs.

For experts, however, the broader issue goes beyond currency or isolated rent increases.

They argue that the long-term solution lies in expanding affordable housing, improving transport systems, strengthening urban planning, and creating more economic opportunities beyond Kigali’s traditional centre.

As the city continues to grow, the challenge may not necessarily be to stop rent prices from rising altogether, but to ensure that growth remains organised, inclusive, and sustainable for both investors and ordinary residents.