Contribution of real estate investment on socioeconomic development in Rwanda: A case study of Kicukiro District

Real estate investment contributes to country’s economic development as result of corresponding increase demand for labor, raw material, and other inputs. Overall opinion is that sustainable development of social welfare and security can be improved through real estate investments, particularly those made to improve residential properties, Gross domestic product (GDP), life expectancy, education access, and employment. Urbanization has increased individuals demanding houses for shelter, looking for employment opportunities, and goods and services for sustaining their welfare. Population increase has become a burden to the concept of individual’s property ownership rights, leading to land scarcity, and available individual’s income cannot supply desired socio-economic level. The study aim was to assess the contribution of real estate investment on socioeconomic development, and research questions were about, what is the contribution of real estate investment on GDP, employment, education, and life expectancy? A descriptive research, quantitative and qualitative approaches were used. Data were collected using questionnaires and a sample size of 564 respondents was selected using simple random sampling technique. Collected data were presented using tables, processed using 5 Point Likert Scale and analyzed using descriptive and inferential statistics of Relative Importance Index (RII) and the Chi-Square (χ2) Test of Significance at the 95% Confidence Level. It was discovered that real estate investment contributes to sustainable socioeconomic development, through the contribution on GDP, employment, education, and life expectancy which was substantiated with the use of the Chi-Square (χ2) Test with the Level of Significance of which the calculated results far outweigh the tabulated results. The study concludes that there is a positive impact of real estate investment on sustainable socio-economic development. The study recommend government to continue improving infrastructure, and real estate investors should keep on encouraging job creation and innovation for sustainable development.