DN International, a real estate development company has embarked on a project that will see the firm complete construction of over 50 residential housing units by the end of this year.
Management says it has set aside Rwf3.5m ($6.2million) for the project that will partly help Rwanda to bridge the current housing deficit that stands at 25,000 units annually.
In an interview with Business Times, Nathan Loyd, DN International’s CEO said the project dubbed “Green Park Villas” is intended to address the housing needs of middle and upper income class.
“This project is more spacious with more facilities such as servants’ quarters, contrary to the first project (Hill View Estate),” he said.
The residential houses are under construction on a plot of 8 hectares located in Rusororo, Gasabo district.
According to the architectural plan, the estate will have among others, a communal swimming pool, a commercial centre, a recreation centre and a water treatment facility.
Upon completion, the 4 bedroom houses will cost Rwf75million and payment can be done in three installments.
However, Loyd mentioned that the pending mortgage law is negatively affecting his business with banks reluctant to embrace mortgage financing.
“The mortgage law is quite a big challenge! We have been promised it will be amended but it is taking long. One is not really looking at the cost implication it has,” Loyd noted.
He said only Kenya Commercial Bank (KCB) has signed a memorandum of understanding with the firm to provide financing for construction and facilitate the end users.
“We have taken the risk hoping that the law will be enacted soon. Most of the banks are waiting for issues raised in the mortgage law to be clarified,” Loyd said.
While the Green Park project will be done in two phases, DN International says phase two which comprises construction of 154 apartments will only commence after enacting the mortgage law.
Maurice Toriorich, the Managing Director of KCB expressed concern over the pending mortgage law.
“We are working on a programme to support home property ownership but this is subject to review of the amendments and final signing of the mortgage law.” Toriorich observed.
However, Antione Ruvebana, the Permanent Secretary of Ministry of Trade and Industry told Business Times, that the final amendment to the mortgage law will be done next week by parliament.
“We are cautious of the urgency of the law. We are likely to have the final document and the law signed in two weeks,” he said.
Ruvebana also pointed out that all the issues raised by stakeholders of the mortgage industry will be addressed in the new mortgage bill.
The ‘Green Park Villa’ estate is the second project by DN International after Hill View with 28 units worth $1.5 million (Rwf848 million).