Kigali landlords need to be more innovative

Editor, RE: “Rwanda’s economy is in the right trajectory, but do landlords see it?” (The New Times, April 26).
One of the houses at Vision City estate in Gasabo District. (Sam Ngendahimana)
One of the houses at Vision City estate in Gasabo District. (Sam Ngendahimana)

Editor,

RE: Rwanda’s economy is in the right trajectory, but do landlords see it?” (The New Times, April 26).

 

Thank you Ms. Campbell-Rodrigues for a well thought-out analysis of the local real estate market. There certainly is an oversupply of high-end residential properties and commercial space and a dearth of low-middle income housing.

 

This is not accidental. The developers of the posh properties see (on paper) a higher return on investment on these rather than on low cost building. Lending institutions have a hand in this situation.

 

Their risk management departments failed to do their homework and now they have un-serviced loans on their books.

I don’t know how serious the problem is (myself I tend to believe that we are not on the edge of the abyss) but I can assure you that consumers are feeling it with interest rates in the 17-20% range.

I think there may be other creative ways to address this situation like breaking up empty spaces in commercial buildings and remodel them into affordable housing units, co-sharing rent in the Mac mansion, etc.

I would welcome more of your thoughts on this as you have shown insight a candor which will, I am sure, enlighten us.

Baingana

Subscribe to The New Times E-Paper


You want to chat directly with us? Send us a message on WhatsApp at +250 788 310 999    

 

Follow The New Times on Google News