HOUSING SUB- SECTOR


The quantity of housing production is still low and its cost does not match the purchasing power of the majority.

Most urban residents still access housing through informal practices, because the formal sector cannot offer housing access schemes which cater to all.

 

A number of circumstances result in the
situation where most housing developments address only a minority of customers, among whom demand has not even been saturated yet.


Currently, while Kigali hosts about half of the urban population in Rwanda, a Housing Market Study for Kigali (2012-22) estimates that total housing needs (2012-22) reach 458,256 units, of which 344,068 are newly to be constructed. Broken down to different purchasing powers, this was translated to:

 

-43,436 units for social housing (12.6%);

- 186,163 units for affordable housing (54.1%);
- 112,867 units for mid-range housing (32.8%); and
- 1,601 units for premium housing (0.5%), for Kigali alone.


Countrywide, the demand has not been thoroughly researched yet and studies are in preparation; it is estimated double of the total need in Kigali.

See attached housing demand strata.


The achievements of the recent years relate to improved participation in planning, openness to the use of local materials in construction, and the equal acknowledgement of tenure rights.

Risen awareness,small scale research, and project trials in the housing sector have contributed to this.

The improvement of neighbourhood planning and of the general urban planning framework is underway, which provides for consistency in planning and development management.

 

Despite the constraints which still exist in housing finance, lending conditions have improved through the introduction of longer credit terms,
slightly reducing interest rates, a larger and more accessible variety in terms of down-payment options, and improvements in the accessibility of the building permitting system in relation to mortgage rules(National Housing Policy).


Housing Development
The Government engages in partnerships for housing development for a sustainable, mixed-use housing neighbourhood development based on a PPP model first tested in 2008 when 250 low cost houses were built, which among other innovations made local materials bankable. An estimated 22,000
housing units are currently in different stages of preparation, to be developed by the private sector with government support.


There is a 2-fold strategy to

1) trigger large scale investment into affordable housing and create competition by using the identified and available land, and

2) trigger and facilitate medium- to smallscale
investment into affordable housing through collaborative development schemes, which would enable small landholders, participate in development in form of cooperatives or as investment shareholders.


The local production of construction material is gradually being increased, e.g. local production of cement, of improved and environmentally friendlier bricks, and new, innovative and home-made solutions for structural and non-structural walling materials. See attached photo.


The Housing Sector and the Construction Industry are continuously growing in Rwanda. The Construction Industry plays an important role in the development strategy of any country that goes beyond its share in national output. Many writers have referred to its effect on employment creation, others to its multiplier effects in the national economy.


It is the great flexibility of construction activity in adjusting to different framework conditions that makes this particular sector of the economy a major contributor to the process of economic growth and development (Lopes et al., 2002).

see attached growth curve Aligned with our national program and strategies, Vision 2020, Economic Development and Poverty Reduction Strategy II (EDPRSII), Urban and Rural Settlement Sector Strategic Plan (2012/13-17/18), the role of the Ministry in the sector is to establish policies, strategies and program that will ensure that:


- The safety and the general welfare of its population is prioritized;
- The development of the sector contributes to the national economic growth;
- The land is used efficiently;
- Energy efficiency and environmentally friendly construction is encouraged;
- The local production of construction material is facilitated;
- The private sector is empowered to drive the sector.