ROLE, PURPOSES OF REAL ESTATE VALUATION AND THE IMPACT ANALYSIS ON ECONOMIC DEVELOPMENT IN RWANDA

The study analyzes the impact of real estate valuation on economic development in Nyamirambo sector located in Nyarugenge district in the city of Kigali. Specific objectives of this research are to analyze the role of real estate valuation, to examine the determinants of economic development and to explore the relationship between real estate valuation and economic development in Nyamirambo sector, Nyarugenge district. Simple random sampling techniques were used to select the sample size of 90 respondents. Primary and secondary data were collected using the questionnaires and interview. Collected data were analyzed using SPSS. The study revealed the factors influencing real estate valuation such as property type (36%), property age (26%), location (24%) and property size (14%). It was also revealed that the real estate valuation has different role such as providing real value of the property (40%), encouraging improvement of the property (30%) and determining large part of investment (30%). People request the valuation for various purposes such as sale (43%), for tax matter (29%) and for mortgage (28%). Real estate valuation in the case study had met the challenges of different things such as the rising of interest rate (48%), economic contraction (30%) and inexperienced management (22%). In Nyamirambo sector, the economic development we witness result from some determinants such as poor technology (45%), insufficient productivity (35%) and poor infrastructure (20%). Based on the research there is relationship between real estate valuation and economic development such as rising house price (34%), scarcity (18%), location (18%), permanence of investment (18%) and improvements (12%). The research results concluded that there is positive impact of real estate valuation on economic development in Rwanda especially in Nyamirambo sector, Nyarugenge district. The researchers recommended the government to collect taxes from leaseholders based on valuation report instead of basing on UPI and self-declaration of property values by the owners as this will help the profession of valuation be known and contribute to the development. Property owners were recommended to adhere to valuation reports for their decision making as it will increase their economic development and their living standards.Property owners were recommended to adhere to valuation reports for their decision making as it will increase their economic development and their living standards