Commercial real estate market study, Kigali, Rwanda

Zoning regulations in Kigali City have had a major impact on commercial real estate and particularly rents. Commercial property rent prices are often based on cost and are frequently unaffordable to target businesses. However,  the challenge of ensuring supply meets demand and that commercial real estate development supports wider densification and spatial planning goals, has not been studied in depth. Also, baseline information is not readily available on commercial real estate at present.

This is one of three baseline studies which will inform the City of Kigali commissioned update of the 2012 City of Kigali Master Plan and its constituent district plans.

This study will analyse and present a range of baseline information on supply, demand, affordability and market confidence in the commercial real estate sector in Kigali. The objective of the project is to generate a quantitative and qualitative analysis of current and expected market supply, demand and confidence, assess the impact of Master Plan zoning regulations as they have been enforced so far, and propose policy directions that will achieve better market performance.

Overall the study will provide a baseline picture of the state of the commercial real estate market and its interaction with previous Master Plans from a number of angles. The results will be taken together to draw broad conclusions about the following points, which could determine zoning and phasing decisions in the Master Plan review:

• Whether the composition and quantity of commercial real estate supply matches demand.
• Which commercial locations have developed the fastest.
• Which commercial locations are likely to develop the fastest in the future.
• Whether commercial real estate is appropriately priced.
• The impact of the Master Plan on investment and construction decisions so far and appropriate lessons for the Master Plan review.