Housing Finance in Rwanda


Rwanda has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Rwanda is 17.26 percent repaid over a term of 15 years, as of September 2016, and requires at least a 20 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 38 000.00, which is for a 95 square metre unit. Cement prices are higher than the continental average, at US$ 12.00 for a 50-kilogram bag.

With an urbanisation rate of 5.76 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. A National Affordable Housing Approval Committee, was established by the Prime Minister. This committee has approved the first affordable housing development, Batsinda2, where more than 530 housing units will be developed. Seven other housing development sites with a total land area of about 257.5 ha are open for investors to develop high density, mixed use housing. At least 22 000 housing units are estimated to potentially result from this in the mid-term. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Rwanda can afford.

Find out more information on the housing finance sector of Rwanda, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2016 edition, which has up-to-date profiles for 51 African countries.

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