Investment Property in Kigali

Investment Real Estate in Kigali

Kigali property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Kigali .

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Search Map of Kigali Investment Real Estate

Kigali (Kinyarwanda pronunciation: [ci.ɡɑ́.ɾi]) is the capital and largest city of Rwanda. It is near the nation’s geographic centre in a region of rolling hills, with a series of valleys and ridges joined by steep slopes. The city has been Rwanda’s economic, cultural, and transport hub since it became the capital following independence from Belgian rule in 1962.

In an area controlled by the Kingdom of Rwanda from the 17th century and then by the German Empire, the city was founded in 1907 when Richard Kandt, the colonial resident, chose the site for his headquarters, citing its central location, views and security. Foreign merchants began to trade in the city during the German era, and Kandt opened some government-run schools for Tutsi Rwandan students. Belgium took control of Rwanda and Burundi during World War I, forming the mandate of Ruanda-Urundi. Kigali remained the seat of colonial administration for Rwanda but Ruanda-Urundi’s capital was at Usumbura (now Bujumbura) in Burundi and Kigali remained a small city with a population of just 6,000 at the time of independence.

Kigali grew slowly during the following decades. It was not initially directly affected by the Rwandan Civil War between government forces and the rebel Rwandan Patriotic Front (RPF), which began in 1990. However, in April 1994 Rwanda’s President Juvénal Habyarimana was killed when his aircraft was shot down near Kigali. His death was followed by the Rwandan genocide, with Hutu extremists loyal to the interim government killing an estimated 500,000–800,000 Tutsi and moderate Hutu nationwide. The RPF resumed fighting, ending a cease-fire of more than a year. They gradually took control of most of the country and seized Kigali on 4 July 1994. Post-genocide Kigali has experienced rapid population growth, with much of the city rebuilt.

The city of Kigali is one of the five provinces of Rwanda, with boundaries set in 2006. It is divided into three districts—Gasabo, Kicukiro, and Nyarugenge—which historically had control of significant areas of local governance. Reforms in January 2020 transferred much of the districts’ power to the city-wide council. The city also hosts the main residence and offices of the president of Rwanda and most government ministries. The largest contributor to Kigali’s gross domestic product is the service sector, but a significant proportion of the population works in agriculture including small-scale subsistence farming. Attracting international visitors is a priority for city authorities, including leisure tourism, conferences and exhibitions.

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The financial stability of Kigali has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Kigali

Renting out your Kigali buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Kigali are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Kigali and be prepared to change your initial outlook.
Thoroughly research the Kigali location with a special emphasis on fringe areas outside the main Kigali metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Kigali.
Ensure that your target investment property in Kigali appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Kigali properties yourself is an easy option, but are these savings justifiable when you run into Kigali red tape? Physis Realty Kigali office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Kigali buy-to-rent sector.

With our expert guidance, investing in Kigali provides the secure knowledge that your money is working harder than it would in a local Kigali bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Kigali, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kigali property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kigali

Flipping property in Kigali

Flipping property is when we advise clients to buy a Kigali property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Kigali market has a time to react to the renovation.

The Flipping Strategy in Kigali

Investment property flipping in Kigali is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Kigali real estate investments are sometimes referred to by professionals as ‘distressed’ Kigali real estate.

What is distressed Kigali property:

Kigali property in need of renovation
Kigali real estate with a change of purpose and use
Oversold Kigali property
Bank repossessions in Kigali

Put simply, long term investors in Kigali purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Kigali investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Kigali property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Kigali use a minimum profit value of 22% when looking at potential Kigali projects. The reason for this is because there are lots that can go wrong in Kigali property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Kigali

For luxury property investors hoping to add a superb property in Kigali to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Kigali, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Kigali should be entrusted to only the highest-quality agency.

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