Kigali runs out of office space

Mupende, the City of Kigali director of urban planning, said many developers were erecting buildings tailored to meet market demands.
She, however, noted that although there was a shortage of office space, city authorities are still unsure about the actual demand.
“We are going to carry out a study next financial year to determine the demand.

“But we estimated the likely demand while developing the city master plan, basing on the population size.
“This has enabled us to get a rough idea of what is needed,” she explained.

The new high-rise buildings, notwithstanding, Mupende said the high rents and the limited number of quality space had forced many companies and individuals in Kigali to convert residential houses into offices.

A recent survey by a local newspaper showed that many civil society organisations, bars and restaurants, churches, political parties and pharmacies preferred to rent space in residential houses rather than commercial or administrative facilities.

The trend could be influenced by the high rents in commercial building, sector watchers said.
For example, in 2009 Akazi Kanoze, a project supported by different organisations, including Usaid and the Education Development Centre, converted a residence in Kacyiru, a Kigali city suburb into an office.

The single-storey house on a 4 000 square metre piece of land costs them US$2 500 per month in rent, while space of about 336 square metres goes for US$9 000 at Kigali City Tower, a classy complex.

“When you have limited quality office space, rent will go up.
“If we had enough quality office space in Kigali, the rent fees would be moderate and attract more people to occupy the available space,” Mupende said.
Mupende added that clients preferred buildings near customers.

“If a business person is targeting clientele in Remera and fails to find office space in commercial buildings around the area, he is forced to rent a residential house,” she explained.

She noted that was the reason the city authority’s masterplan segments the uses of buildings according to the different zones and areas.
This, Mupende added, was to provide for subsidiary areas that can offer services similar to those offered by the central business district, if it is developed as the major commercial or financial hub.

“For example, if you take Nakumatt supermarket as one of the businesses we have, they started with one branch at the Union Trade Centre and later, opened another outlet at Kigali City Tower and now are looking to establish a third store in Remera, another of Kigali’s busiest suburbs.
“This is because they realise there is a pull and need to target people in Remera rather than having them come to town or refraining from doing any shopping,” she added. — CAJ News.