Rwanda is a country full of people everywhere. There is a huge population in Rwanda, and it is one of the most densely populated countries in Africa. The figures are shown by the surveys conducted by Household Living Conditions back in 2016 and 2017, almost 38.2% of Rwandans are living below the poverty line. The population living in urban areas is just 18.4% of the total population. And the experts are expecting it to go up to 35% by the end of 2024. 61.3% of this urban population still lives in not formally settled areas but are informal.
Almost 79 informal settlements are there, most of which are located in two cities as Kigali and Rubavu District. The real estate sector shares almost 10% of the total GDP, and it has been affected severely because of the Pandemic. The first quarter of 2020 was the hardest hit, and it gave around a 4.1% decline to the economy.
Later it recovered, but it played catastrophic shots for the real estate sector. In the first quarter of 2021, the real estate sector has taken a slight breath of relaxation, and it has managed to get a 3% rise in business. And the inflation, which was at 4.8%, went down to 1.9% in the real estate sector. And it is an amazing equation for the real estate sector certainly.
NST-1 priorities will decide the expenditure policies for the Government, and its objective will set the direction to achieve the desired goals. Almost 58.7% of the total budget has been apportioned for the economic transformation, and the rest will be shared with social and governmental transformational plans. One of the most key objectives of the NST-1 is to focus on improving conditions for urbanization. It will include new housing projects at affordable rates for all, and it will set the overall tone for the development of the economy.
The pandemic was never been easy to tackle with and it disappointed millions around the country. No sector was remained untouched by pandemic woes and when it comes to real estate it was disastrous. But now the upcoming housing projects are seeming will deal with the situation by the end of 2021. Affordable housing schema with other lending facilities will create a breathing space for Rwanda’s citizens. They are hoping that It will shape the economic transformation all over again.
