How the pandemic is reshaping Rwanda’s real estate market

The COVID-19 pandemic has brought seismic shifts in consumer behavior, impacting various sectors of Rwanda's real estate market. In a recent interview with CNBC Africa, Paul Rwigamba, the Director of Projects and Property Management at Century Real Estate, discussed the evolving landscape of the real estate market in the country. Prior to the global pandemic, the occupancy rate of commercial buildings in Kigali was at a robust 85%. However, the pandemic ushered in a new era, causing significant disruptions across different segments of the industry. Rwigamba highlighted the challenges faced by the hospitality, retail, residential, and commercial office sectors. The hospitality sector bore the brunt of the pandemic with closures and decreased operations, leading to a stagnant market. Retailers also struggled to adapt, with a shift towards delivery services to survive. Residential properties witnessed a decline in demand as people refrained from moving due to lockdown restrictions. The commercial office space sector saw a transition to remote working, impacting the traditional office setup. Despite these challenges, Rwigamba outlined the strategies implemented by Century Real Estate to weather the storm. By offering essential services like property management and security, the company managed to stay afloat during the tough times. Furthermore, the pandemic forced the industry to adapt and evolve. Tenants sought to reduce their space, prompting a reevaluation of office layouts and operational strategies. With an increasing focus on remote work, there is a growing trend towards optimizing space utilization and exploring alternative working models. Moreover, the rise of e-commerce has reshaped the retail sector, pushing businesses to embrace online platforms for sales. The pandemic has heightened the importance of flexibility and innovation in the real estate market, driving developers and property managers to rethink their approaches. Rwigamba emphasized the need for tailored strategies based on evolving demand and market dynamics. While the pandemic has influenced the way buildings are constructed and utilized, Rwigamba indicated that the shift varies across developing countries like Rwanda. Despite global trends, the local market demand plays a crucial role in determining the direction of the real estate sector. As Rwanda grapples with changing consumer preferences and economic conditions, stakeholders must adapt to meet the evolving needs of tenants and investors. The future of Rwanda's real estate market hinges on resilience, adaptability, and a proactive response to emerging trends.