Prices for apartments at the plush Vision City estate in Kigali’s upscale neighbourhood of Gaculiro have dropped by 60 per cent exclusively for public servants who seek to own their first homes and are at a grade not above head of department or equivalent.
The development was announced Monday by the Rwanda Development Board andUltimate Developers Ltd (UDL),
UDL is a real estate company fully owned by the Rwanda Social Security Board (RSSB). The company developed the Vision City housing project.
Eligible public servants will be able to buy a two, three or four-bedroom apartment at the estate at a subsidized price.
Under this arrangement, a 2-bedroom apartment will be sold at Rwf63,000,000, down from the standard price of Rwf108 million (about $125,300).
An apartment of three bedrooms, which normally goes for Rwf163 million (about $188,300) will go for Rwf94,000,000 in case the buyer is an eligible civil servant.
A 4-bedroom apartment, that ordinarily goes for Rwf187 million (about $215,600), will cost a public servant Rwf108,000,000.
For those seeking to take a loan to buy a home at the estate, banks shall give a loan at 11 per cent repayable over a period of 20 years, according to the announcement. It adds that the equity contribution of 10 per cent normally required by local commercial banks for a normal mortgage loan will be optional.
A view of some housing units at Vision City. Nadege Imbabazi.
Those who will fully rely on the bank loan 100 per cent will pay a little more when it comes to servicing their mortgage compared to those who will make a personal contribution of 10 per cent toward the cost.
Applications for the housing units shall be open between October 16-31, 2018, according to UDL and RDB.
Explaining the rationale behind the offer, the Head of Communication at RDB, Sanny Ntayombya, said that it will help public servants remain stable at their jobs as they will have a home at a relatively reasonable price.
“It’s a way of retaining talent for the Government as well as assisting young civil servants in purchasing their first homes. It’s about those who don’t have a home to buy their first home at rates that are manageable,” he told The New Times.
Application forms will be downloaded from a link on RDB website (http://rdb.rw/vision-city/). Selection and verification of eligible applicants is due to take place November 1-21, 2018.
The announcement said that feedback to the successful applicants shall be made by end of next month.