Real Estate - Rwanda | Statista Market Forecast

In 2024, the Real Estate market market in Rwanda is projected to reach a value of US$91.67bn.
It is worth noting that the Residential Real Estate segment dominates this market, with a projected market volume of US$81.62bn in the same year.
Looking ahead, this sector is expected to exhibit an annual growth rate of 3.73% between 2024 and 2029, resulting in a market volume of US$110.10bn by 2029.
When comparing in Rwanda to global counterparts, it is important to highlight that United States is anticipated to generate the highest value in the Real Estate market market, reaching US$132.0tn in 2024.
The real estate market in Rwanda is experiencing a surge in demand due to the country's stable political climate and growing economy.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Rwanda has been experiencing significant growth and development in recent years. Customer preferences have shifted towards modern and sustainable properties, while the market has been influenced by various trends and local special circumstances. Additionally, underlying macroeconomic factors have played a crucial role in shaping the current state of the real estate market in Rwanda. Customer preferences in the Rwandan real estate market have evolved to prioritize modern and sustainable properties. With the country's economic growth and rising middle class, there is an increasing demand for high-quality residential and commercial properties. Customers are looking for well-designed and energy-efficient buildings that offer modern amenities and a comfortable living or working environment. Additionally, there is a growing interest in properties that incorporate sustainable features, such as renewable energy sources and green building materials. Trends in the market reflect the changing customer preferences and the overall development of the real estate sector in Rwanda. One notable trend is the construction of mixed-use developments, which combine residential, commercial, and retail spaces in a single project. These developments cater to the demand for convenience and accessibility, as people seek to live, work, and shop in close proximity. Another trend is the increasing investment in affordable housing projects, driven by the government's efforts to address the housing shortage in the country. These projects aim to provide affordable and decent housing options for low-income individuals and families. Local special circumstances also contribute to the growth and development of the real estate market in Rwanda. The government has implemented various policies and initiatives to attract both local and foreign investors. This includes the creation of special economic zones and the simplification of procedures for property registration and acquisition. Additionally, the Rwandan diaspora plays a significant role in the real estate market, as many individuals living abroad invest in properties in their home country. This influx of capital contributes to the overall growth and development of the market. Underlying macroeconomic factors have also influenced the real estate market in Rwanda. The country's stable economic growth, driven by sectors such as tourism, agriculture, and services, has created a favorable environment for investment in the real estate sector. Additionally, the government's commitment to infrastructure development, including the expansion of transportation networks and the improvement of utilities, has further stimulated the market. These factors have attracted both local and foreign investors, leading to increased construction activities and the overall expansion of the real estate market. In conclusion, the Real Estate market in Rwanda is experiencing significant growth and development, driven by changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for modern and sustainable properties, the construction of mixed-use developments, the investment in affordable housing projects, and the government's policies and initiatives all contribute to the positive trajectory of the market. With the country's stable economic growth and commitment to infrastructure development, the real estate sector in Rwanda is expected to continue thriving in the coming years.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

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The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Rwanda

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Volume

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