The National Institute of Statistics of Rwanda released the Q1:2023 R-GDP National Accounts Report on Monday 19th June 2023 highlighting that:

• The economy’s overall GDP grew by 9.2% in Q1:2023, which is a 1.3% increase when compared to a 7.9% growth recorded in a similar period last year. This was mainly boosted by the services sector which contributed 44% of the GDP, translating to a 13% increase from last year.
• Real Estate Sector contribution, despite having remained constant at 6.0% for the last three years, grew by 9.0% in Q1:2023, up from the 5.0% recorded in Q1:2022. Notably, Real Estate was the tenth fastest growing sector in Rwanda, out of twenty sub economic sectors. Nonetheless, the improvement of the property sector has mainly been on the back of: 

1. Increasing population and urbanization growth rates driving demand. 

2. Growing popularity as a business hub hence attracting investments. 

3. Significant investments in infrastructure promoting Real Estate development.

Source: National Institute of Statistics of Rwanda

• Construction sector on the other hand did not follow a similar pattern as the sector recorded a 1.0% growth in Q1:2023, from 6.0% recorded a similar period last year. Key to note that this is also the lowest in the last five years. The decline in performance is mainly attributed to the sharp rise in inflation rate (22.4 % on an annual basis), which has hindered optimum construction activities as a result of high development costs.

Source: National Institute of Statistics of Rwanda

On the positive side, Rwanda’s inflation rate is expected to cool down to 7.4% in 2023 and 5.6% in 2024 and such Estate Intel expects that this will positively impact the construction sector growth and performance, as well as boost Real Estate overall performance.

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