Rwanda’s commercial rents are on the ascendancy with occupancy levels in Kigali city increasing, a property agent has said.
“Indeed, prices are going up but some of these places are overpriced, with the pick at $26 (Rwf15,530) per square meter,” Charles Haba, a property agent, said in an interview, citing places like the Union Trade Centre in the CBD where tenants have to dig deep into their pockets.
"Certainly, it’s about the market; people have no choice but to pay, once more and better modern buildings are in place it will enhance performance and efficiency," he explained.
He is optimistic that the booming construction industry will address such challenges since so many buildings are expected to be complete in the near future.
Some of the projects mentioned include City market, Insurance Plaza and Kigali City Tower.
Nathan Loyd, Chief Executive Officer of DN International said Rwanda currently does not boast of any commercial complex of world standard but can boast of the upcoming Kigali City Tower shopping mall which is more modern.
“We have seen potential home buyers increase this year, which is also attributed to the country’s move to approve the mortgage law,” he said.
The Vice Mayor of Kigali City Alphonce Nizeyimana observed that the major reason was that the demand which outstrips supply but assured that there were tremendous opportunities for city planning and development to cater for urbanisation.
“Commercial rents are high, especially in CBD but this is mainly due to speculation from landlords as the city is growing and expanding,” Nizeyimana said.
Vivian Uwimana said she owns a business in Kimironko and in the last two months, her rent was increased from Rwf250, 000 to Rwf350, 000.
“I have decided to do mobile business, with my stock at home. I call my clients and deliver to them wherever they are,” she sad.