How landowners are trading land for homes without upfront capital

A draft condominium law introduced by the Ministry of Environment is expected to open new pathways for landowners to develop property without upfront financing, by formalising land–developer partnership models. The proposed legislation sets out clear rules for creating, managing and registering buildings with individually owned units and shared common areas. Crucially, it also recognises partnership arrangements in which landowners contribute land while investors or developers finance and construct multi-unit properties. ALSO READ: Why more Rwandans opt for condos for accommodation Under this model, a landowner who lacks capital can enter into an agreement with a developer who funds construction. Ownership is then shared according to a mutually agreed formula—often on a percentage basis or by allocating specific units or floors. Once construction is complete, each party receives legally recognised units or shares registered under the condominium framework, ensuring clearer and enforceable ownership rights. For residents like Angelique Uwingabire of Mpazi Village in Gitega Sector, the model has been transformative. She partnered her land in exchange for a two-room house and three additional rental units. “Originally, we lived in a poorly developed area. When it rained, water would flood our home, and even digging latrines was a challenge,” Uwingabire recalls. ALSO READ: City of Kigali approves settlement sites with 40,000 plots “When we heard that investors were planning to partner with landowners to build organised settlements, we rushed to participate. I had a large plot with tenants paying very low rent, so we used that land as leverage to negotiate better housing.” After signing the agreement, she received rental payments to cover temporary accommodation and later moved into a newly built three-room house. “It changed our lives. I now have a proper home, and the extra units generate income that helps cover other expenses,” she said. John Kalisa, a landowner in Kanombe, says the model offers both opportunity and risk. “It can be a good arrangement because the landowner gains value immediately. You can move into your allocated unit or rent it out and start earning income,” he said. However, Kalisa cautioned that such agreements fundamentally alter land rights. ALSO READ: Inside Kigali’s plan to reduce informal settlements to 20% “Once you trade your land for units, you no longer own the land itself—you have exchanged it. If compensation arises later, for example from road construction or industrial development, the original landowner may not benefit in the same way.” He also raised concerns about future expansion. “If an agreement gives a landowner the ground and first floor, but the developer later adds five more floors, tensions can arise,” he said. “Land values keep increasing, but the land contributor remains limited to the initial share.” Kalisa argued that agreements should anticipate future developments and clearly define how additional construction is handled. “Unless both parties agree from the beginning that extra floors built later come with additional benefits for the landowner, misunderstandings are likely,” he said. He added that the draft law should clearly explain long-term rights, airspace ownership and future expansion, while also educating landowners on what partnership models truly entail. “Just as you can sell land, you can sell the airspace above it. The law must clarify how ownership works under condominium and partnership arrangements.” For Francoise Kazayisenga, a resident of Rwankuba in Kinyinya Sector, ambition drove her decision to pursue a land partnership. She owned a large plot in Kibagabaga and envisioned a multi-storey building her children could inherit. “I did not want to sell the land. I wanted to build something substantial for my family, but taking a bank loan felt too risky, and I did not want the land to sit idle,” she said. She entered into an agreement with a foreign investor who committed to finance a three-storey building. In return, she would receive an entire floor with four apartments, while retaining land ownership. The contract also included a safeguard clause allowing her to keep any unfinished development if the investor failed to deliver. However, the investor later withdrew and left the country before construction began. “It became a nightmare. Without a reliable partner, I eventually had no choice but to sell,” she said. Kazayisenga believes that stronger legal protections could help landowners preserve and grow family assets rather than relinquish them entirely. Dieudonné Maniragaba, Managing Director of DBM Group Ltd, says that while many landowners understand the concept, negotiations often collapse due to trust issues and mismatched expectations. “People generally understand the idea, but building trust between landowners and investors remains a challenge,” he said. He cited cases where disagreements over profit-sharing derailed projects. In one instance, a landowner expected two apartments from a four-storey building, while the investor argued that such a share would make the project unviable. “Both sides felt justified, but no deal was reached,” he said. Investors, he added, are equally cautious, pointing to the absence of a comprehensive legal framework to protect both parties. Disputes over land valuation—despite government price benchmarks in some areas—also complicate negotiations. Stakeholders argue that a clear condominium law defining rights, obligations and valuation standards could reduce friction and encourage more Rwandans to embrace structured land partnerships as an alternative to outright land sales.

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How landowners are trading land for homes without upfront capital