Why Does Real Estate Is Facing A Downfall In Tanzania?

Not considering the expert advice had made many development projects a complete failure. The project of Kigamboni city, Dar es Salaam is listed among the initiatives that collapsed badly and left taxpayers in agony.

A real estate valuer, Mr. Gerson Marisa, commented that the embarrassment could be avoided if the experts were concerned earlier. He stated the projects of multi-billions are now on shelves instead of a glamourous masterpiece.

The real estate valuer commented that projects of mega housing schemes were at their peak around the country. He further said that the scenario would have been different if the estate valuers were involved before. 

The government contemplated the ambitious project of Kigamboni City in the last quarter of the 2000s. It was expected that the peri-urban Dar suburb would be transformed after the completion of the project.

The houses and territories were to be rented and later sold as commercial units. But, Tanzania’s government dumped it in 2016 after forecasting that the project is not feasible. 

In a meeting governed by the real estate association’s professionals, it was mentioned that the leaders casually talk about solving the real estate sector’s crisis without considering the experts’ guidance. The meeting included estate valuers, finance and investment analysts, administrators, and managers.

The director-general and Arepta president, Mr. Dr. Maulidi Banyani of National Housing Corporation, stated that real estate development must be bound to an investment requirement.  

The director-general of NHC said to invest in land; it must be valued first. As a turn, It should be bound to the financing phase. He further commented that before the recent events, the government was not into real estate financing, leaving the domain in control of stockholders.

According to Mr. Banyani, many trained and expert individuals of real estate are out of employment. And Arepta has proposed a draft of issues their professionals face to Tanzania’s government and now hoping to get a positive reply. 

The secretary Dr. Kusiluka Mpogole has challenged the property sector managers to benefit from the situation that occurred due to the City Dodoma’s rapid growth.