Plots in the proposed Central Business District (CBD) have attracted a lot of interest from investors but less than 10 percent has been purchased, an official of the Social Security Fund of Rwanda (SSFR) has said.
The Director of Real Estate Department in SSFR, Fred Rwihunda said that over 90 percent of the plots have not been sold.
“Overall, about 60 percent of the plots have been booked but there are no payments made yet,” he told The Business Times in an interview.
The nine plots scaling on about 9.7 hectares are located in Rugenge sector (former lower Kiyovu) of Kigali City. They (plots) range from 5,600 square metres (the smallest) to 13,866 square metres (the biggest).
“Though we may not know why only a few have bought despite the high interest, we presume that many (potential buyers) are waiting for the completion of infrastructure development,” Rwihunda explained.
“In fact, all the interested investors are eligible. They meet the requirements,” he added.
According to the pension body that is charged with the selling of the plots, the eligibility of an investor interested in buying the plots depends on a project in place and the capacity to development it in 36 months.
SSFR recently reduced prices of the plots by 20 percent per square metre. The price falls to Rwf87, 000 from the initially cost of about Rwf109, 000 per square metre partly to attract buyers.
The reduction in the price was because of government’s pledge towards infrastructure development in the areas. This was aimed at reducing the cost of development.
According to the abstract of the Kigali City Master Plan, about 2.7 hectares of the estimated 9.7 hectares of land is reserved for development of infrastructure services such as data and voice communications, waste and a water treatment plant.
“We therefore concentrating on developing the infrastructure,” Rwihunda said.
The clearing of the plots that started late last year marked the implementation of the city’s Master Plan. This first phase involved putting up the basic infrastructure like paving roads and clearing the plots.
According Kigali City Council (KCC), the CBD will enhance doing business within the city and subsequently improve the investment climate.
It is part of the KCC $600 million construction projects for investment.