Rwandan Property Market Eyed for Development Opportunities
CNBC Africa reported on the surging middle class populace in Rwanda, rising at 2.7 percent, plus an increasing demand for property developments.
In line with the rising demand, Rwanda also boasted of a massive boost in its construction sector. Each year in Kigali, between 28,000 to 35,000 units have been in demand, which is creating a need for developers to meet.
Ujenge Group CEO and Young Presidents' Association member Patrick Sebatigita said, "I think the construction sector really boomed and had taken a significant chunk of the GDP, various sectors, infrastructure, offices and developments—however on the real estate part we still have a high demand to address."
"So people tend to focus on the construction costs to reduce it however I think it may be a bit more complex than that—if we want to address demand—I think the local developers have to be empowered first with capacity to generate capital," continued Sebatigita, still in the same report.
In other news, the hotel property market sector in Africa has also seen growth, as international as well as local hotel companies have begun to see its budding potential, according to Africa Property News Online.
In accordance with "Destination Africa," business travel has been modestly increasing in key African cities, along with tourism destinations that have a need for services from luxury hotels. Africa has started to showcase its great potential to accommodate multinational hotel chains.
Protea Hospitality Group CEO Arthur Gillis said, "Africa has more development potential than just about anywhere else in the world. Many African economies are expanding rapidly and it's encouraging to see GDP projections of between 6 percent and 8 percent becoming reality on the back of political stability."
The group already has hotels valued above $100 million that are currently undergoing construction in Nigeria, Uganda, Ghana, Rwanda and Zambia, as stated in the same report.