Morocco’s Palmeraie Development Group is going to construct up to 5000 new houses that will be completed in 2017.
Construction is set to kick off early next year and last for 18 months under the auspices of Development Bank of Rwanda (BRD) which will do the financial implementional work of the project.
The affordable housing units are to be constructed under the partnership signed among the 19 agreements of corporation between the North and East African countries during the recent five days visit by Moroccan King Mohammed VI.
The project is expected to cost up to an estimated Rwf 55 billion or $68 million, Palmeraie group paying 30% of that total.
According to BRD’s Chief Executive Alex Kanyankole, the remaining 70% is expected from the African Development Bank.
“Those that cannot pay cannot pay the tagged prices of each house will be allowed leasing agreements to pay modestly per month over a certain time to completely own them,” Kanyankole said that to make the houses affordable, issues related to daily challenges are being assessed.
The first 2000 houses will be built in Ndera sector Gasabo district but the other 3000 will be distributed in other sectors to grant more affordable housing to all people.
The houses will be flat bungalow or even apartments depending on the site of location could be near Kigali city or in the suburbs.
Palmeraie has expertise of 30 years in housing development all over the continent and according to the group’s Chief Executive Hicham Berrada, the project set to start in Rwanda is simply a merger of their construction work.
The Palmeraie houses are expected to help Kigali and the country to pace up housing for a potential 3.8 million city dwellers that will need more than 344000 in the twenty four years. Currently more than 800 to 1000 houses are constructed each but the assessments shows that to meet the growing demand of two thirds for urban housing there must be 31000 houses built every single year.
Today there are 1.2 million people in Kigali city alone and two thirds of them desperately need affordable housing to stay in the city.