Commercial properties in Kigali are not far more expensive today than they were a few years back, as Rwanda’s economy decreased to 12% on GDP at the end of 2020 and tenants’ payments vividly are no longer pay respectively and also some businesses players closed their doors.
In Rwanda’s real estate sector, the overall returns on commercial properties are higher than residential properties and it helps in preventing the headache associated with dealing with tenants.
Many business owners in Kigali do not have a place of their own, thus, the need to rent commercial properties for business transactions.
The location, quality of infrastructure, and the number of units contained in a property determine the value and its worth. Below are some key things to note when investing in commercial properties.
Properties areas with Growth
Properties that are located in high-traffic areas attract tenants and business owners who seek to work in the center of the capital. Commercial properties in Nyarugenge, Nyabugogo, Kicukiro, Remera, Kimironko, and Gakiriro-Gisozi are popular among real estate investors in Kigali. The higher the foot traffic, the lower the hassle about getting a tenant to occupy the space.
Property with mixed functionality or Complex building
Commercial properties capable of bringing in the highest returns are those that bring in the highest number of tenants. A mixed-use property like M. Peace Plaza that has different units serving such as offices, spaces, storage facilities, housing, and eateries is more likely to have higher demand due to its of meeting different needs and the convenience it provides public.
Property in residential areas
Properties in residential areas create provisions for the needs of different services in order to meet the demands of the residents of the community. For example, the KL building located in Nyarutarama provides shopping mall, bar, offices to target residents from Gacuriro and Nyarutarama.
Therefore, the investment decision to acquire a commercial property in a luxurious estate or a residential area is also a great investment if the services provided are intended to meet the demands and the needs of the residents, thereby, making the viability of the business housed within most likely to be long term.
Even though commercial properties are not for faint hearts and many cost more to maintain, they are more sought after and lead to higher returns. The recent demand for commercial properties in the capital, Kigali, from the banking sector to telecommunication and supermarket are being increased the value of such properties.