The Commercial Real Estate Analysis in Master Plan Implementation for the City of Kigali
Kaziviya Dany Vedaste1, Abedenego O. Gwaya2, Titus Kivaa3
1Eng. Kaziviya Dany Vedaste, Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya.
2Dr. Abenedego O. Gwaya, Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya.
3Dr. Titus Kivaa, Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya.
Manuscript received on June 03, 2019. | Revised Manuscript received on June 07, 2019. | Manuscript published on June 15, 2019. | PP: 50-55 | Volume-5, Issue-12, June 2019. | Retrieval Number: L11310651219/19©BEIESP
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Kigali, the capital of Rwanda with currently more than 1.3 Million inhabitants is among the most active and advancing Cities of Africa which aims at developing as a competitive, clean, attractive, safe and clean core in the East African region. Projections indicate that the Kigali’s population will double in ten years. Kigali, as most cities in the modern world, is attracting ever more people in search of job opportunities, self-improvement and a better future. The building sector is among others emerging in Kigali, after the city completed its detailed master plan in 2013. This study specifically focuses on the analysis of the existing retail commercial and office space in period from 2013-2018 in line of implementing the City of Kigali master. The objectives of this study were; (1) to assess the existing commercial retail space in the City of Kigali, (2) to identify challenges faced by developers and renters in commercial real estate industry and (3) to assess current interventions by City of Kigali and government in commercial real. Data were collected using questionnaires, observations and documentation analysis. They were qualitatively and quantitatively analyzed basing on researcher’s objectives. Primary and secondary data were collected for the analysis. Sampling practices were used to select the respondents from the study population. The research design was drowned; primary and secondary data were gathered for this research. After carrying out this research, it was revealed that commercial real estate property investments in Kigali originate from short term bank loans with high interest rates and the increased number of retail commercial and office spaces in the last five years in Kigali has not brought rental prices down as expected. The high cost of rent for retail commercial and office space and the limited number of quality space have led many corporate organizations, and individual businesses in Kigali to converting some residential houses into offices at negotiable prices. The research recommends the GoR and CoK, to improve in provision of the adequate infrastructure and facilities, streamlining laws and regulations related to construction, urban planning and doing business in favor of building developers, the key role players in the implementation of the KCMP. On reduction of big amount invested in construction which leads to the high rent rates, this research recommends the use of local construction materials, long term loans with low interest rates and establishment of effective strategies to ensure availability of sufficient land for commercial building development. Though, the research highly recommends other researchers who will get interested in this area of study to focus on two key things (1) An analysis to determine the most effective strategies to ensure availability of sufficient land for commercial building development in the City of Kigali; (2) the impacts of adoption of local construction materials in Building industry in Rwanda.
Keywords: Building, Challenges, Commercial Real Estate, Master Plan.