darproperty march 2016

The Darproperty - August 2015 | 1The Darproperty - March 2016 | 1

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Issue No 47 | ISSN 1821-7753East Africa’s Ultimate Property GuideMarch 2016

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1. Highlights• The mortgage market registered a much lower growth rate of only 1 percent during the fourth quarter of year 20151 (Q3 2015 growth rate stood at 6.7 percent). The year on year comparison records a growth rate of 45 percent over the last 12 months through 31st December 2015. This has declined from the annual growth rate of 59 percent recorded in2014.• 26 lenders were offering mortgage product as at 31st December 2015 compared to 22 lenders as at 30th September 2015 and 19 lenders as at

31st December 2014. The new entrants in the fourth quarter of 2015 are China Commercial Bank Ltd, Peoples Bank of Zanzibar, NBC Ltd and Amana Bank Ltd.• Outstanding mortgage debt as at 31 December 2015 stood at TZS 359 billion equivalent to US$ 166.5 million2(TZS 248 billion as at 31 December 2014).• Average mortgage debt size was TZS 106 million equivalent to around US$ 49,112.35 (TZS 69 million in 2014)• The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) stood at 0.45 percent (0.46 percent in 2014).• Mortgage debt advanced by top 4

TANZANIA MORTGAGEMARKET UPDATE

lenders accounts for 64 percent of the total outstanding mortgage debt (67 percent in 2014).• High interest rates and lack of affordable housing remain the major constraints on market growth.• Mortgage debt advanced by Tanzania Mortgage Refinance Company (TMRC) to mortgage lenders accounted for 12 percent of the market’s outstanding mortgage debt (14 percent in2014).

2. Mortgage Market Growth:The mortgage market in Tanzania has been growing steadily as the pace of housing investment picks up. As at 31st December 2015 total lending by banking sector for the purposes of residential housing was TZS 359 billion, which is equivalent to US$ 166.5 million. This represents growth of 45 percent from total mortgage lending as at 31st December 2014.

Factors attributed to this increase is the increased awareness on mortgage loans among borrowers as a result of various public awareness campaigns by banks offering mortgage loan product as well as increased competition as new lenders enter the market. Figure 1 below shows the trend of mortgage lending in terms of amounts over the year;

>>continues on page 10


3. Increasing Competition as New Lenders Enter the Market:As at end of December 2015, 26 different banking institutions were offering mortgage loans, compared to 19 lenders as at end of December 2014. The seven new mortgage lenders who entered the market in 2015 are International Commercial Bank (ICB), Bank M Tanzania Ltd, TIB Corporate Bank Ltd, China Commercial Bank Ltd, Peoples Bank of Zanzibar, National Bank of Commerce Ltd. and Amana Bank Ltd. The number of mortgage lenders is expected to increase even further as more lenders continue to

4. Obstacles to Growth of the Mortgage Market:Demand for housing and housing loans remains extremely high but is constrained by inadequate supply of affordable housing and high interest rates. The current housing deficit in Tanzania is estimated at three million housing units with a 200,000 unit annual demand3. Most lenders offer loans for home purchase and equity release while a few offer loans for self-construction which for the most part continue to be expensive beyond the reach of the average Tanzanian. High interest rates offered by mortgage lenders also pose as another impediment to the growth the mortgage market. During 2015, interest rates offered by mortgage lenders were reported to range between 16– 21 percent. An increasing trend was noted on the 182 days T Bill rate during the third and fourth quarters of the year with the rate rising to reach 17.79 percent towards mid February 2016. The rising trend on the 182

launch their mortgage loan products. The mortgage market was dominated by four top lenders, who amongst themselves command about 64 percent of the mortgage market (67 percent in 2014). Equity Bank was a market leader commanding 25 percent of the mortgage market share, followed by Stanbic and Azania Bank with 14 percent and 13 percent of the market share respectively. Bank M (Tanzania) Limited stood at the fourth position with about 11 percent of the market share. More positive developments are expected in the market with larger banks now launching their

days T-Bill rate negatively affects all forms of long term debt, including mortgages. The government has however expressed its commitment to ensure the loan interests are reduced in order to enable many Tanzanians to acquire loans.

High value added tax on houses has also posed another challenge on affordability of housing to lower income earners. The government has created a special task force at the Treasury to address theissue. Discussions are at an advanced level and the matter is set to be tabled in the coming budget.

5. Positive Initiatives to Boost the Mortgage Market:

The continuing projects by National Housing Corporation (NHC) being carried out from the company’s 2010-2015 strategic plan focusing on high, medium

mortgage loan products as competition in the traditional banking products continues to intensify. Whereas National Microfinance Bank (NMB) only did a soft launch of their mortgage loan product in 2014, National Bank of Commerce Ltd (NBC) officially launched its mortgage loan product ‘Hamia Kwako’ in July 2015.

Figure 2 below shows market share for top eight mortgage lenders as at 31st December 2015, in terms of outstanding mortgage debt.

and low income earners continue to have a positive impact on the mortgage market. The company’s current major ongoing projects in Dar-es-Salaam include Victoria Place, 711 @ Kawe, Golden Premier Residence, Mwongozo Estate and Morocco Square. The Morocco Square project was launched by the company in October 2015 and is expected to be the biggest three level square towers in East and Central African region with a construction cost of over TZS 150bn. The square will consist of three blocks including a shopping mall consisting of 20,000 square metres which will accommodate banks, chain of stores, supermarkets and shops, movie theatres, kids’ grounds and food courts, among others. Apart from the multiple businesses spaces, the Morocco Square will also consist of other two office blocks and one of them is a Stock Exchange Tower that stands to accommodate and upgrade the current Dar es Salaam Stock Exchange (DSE).

>>continues on page 12

Real Estate>>continued from page 12


A country-wide NHC project ‘My Home My Life’ is also ongoing to offer affordable housing to Tanzanians across the country. Currently the project has reached a number of regions including Mkinga (Tanga), Mvomero (Morogoro), Mnyakongo-Kongwa (Dodoma), Mkuzo (Songea), Mtanda (Lindi), Mrara (Babati), Unyankumi (Singida), Bomba Mbili (Geita), Ilembo and Iyonga (Katavi), Uyui (Tabora), Longido and Monduli (Arusha) and Mlole (Kigoma) as well as Kibada and Mwongozo (Kigamboni, Dar-es-Salaam).5

Likewise, the Public Servants Housing Scheme which is being administered by Watumishi Housing Company (WHC) and specifically tasked to build 50,000 affordable housing units in various phases in the next 5 years has continued with implementation of its projects with the first phase being focused on construction of houses in the administrative regions of Dar es Salaam, Coast/Pwani, Tanga, Arusha, Mwanza, Shinyanga, Mtwara, Lindi, Tabora, Dodoma, Morogoro, Kilimanjaro, Ruvuma and Mbeya. In November 2015 WHC launched a construction drive of 800 houses in four regions namely Tanga at Pongwe area (40), Mwanza at Kisesa Township (56) and Dar es Salaam which will receive the bulk of the houses to be built in Kigamboni (400), Bunju (190) and Magomeni Usalama (104). The Magomeni Usalama project is set to build two flat buildings with 15 floors each. The buildings to be built right at the heart of a historical part of Dar es Salaam which used to be the home for a good number of mid-ranking civil servants of independent Tanzania Mainland (Tanganyika) are set to change once and forever the area’s scenery. Besides Dar es Salaam, Morogoro, Tanga and Mwanza regions benefitting in the construction of the low cost, yet descent houses under the

WHC’s first phase drive, other regions lined up for the construction drive in the near future are Dodoma, Ruvuma, Mtwara, Mbeya, Kigoma, Mwanza, Shinyanga, Arusha, Tanga, Lindi and Coast. In the Coast Region, WHC is set to radically change the face of Kibaha by creating a satellite city of 1,000 modern housing units plus supportive commercial infrastructure including setting up an ultra-modern shopping mall and other public amenities to serve up to 5,000 residents. This might turn to be one of the mega-projects to be undertaken by WHC as it scales up the ladder of serving both civil servants and the nation.6

The Scheme whose funding mostly involves local Pension Scheme Funds who are the shareholders ofWatumishi Company is expected to be the largest real estate project to be implemented in East and

Central Africa, filling the affordable housing gap in the market as Public Servants will be able to buy the houses by taking cheap mortgages of between 10-and-15 per cent, repayable up to 25 years from participating banks. By early October 2015, five banks namely CRDB, Azania Bank, Exim Bank, Bank of Africa and National Microfinance Bank (NMB) had already signed Memoranda of Understanding (MoUs) with Watumishi Company to extend mortgage loans to public servants in its projects.7

Most Pension funds are also actively involved in housing projects. The National Social Security Fund (NSSF) is in the middle of constructing its housing development in Kigamboni (the Dege Eco Village satellite

city) which will bring to the market a supply of 7,460 housing units by 2017. Total project costs are estimated at around US$544.5 million8.On the side of private developers, Avic International has continued with implementation Avic Town project in Kigamboni with plans to build 5,000 housing units in the next 3 years. The first phase of infrastructure has been completed. The main gate, landscape avenue and sample houses were shown to the public by June 20159. The project is scheduled to deliver its first phase of 159 villas and bungalows as well as commercial center at the beginning of 2016. Discussion with various banks is still ongoing with intention to secure low mortgage interest rates for the prospective customers10.

Furthermore, Tanzania Buildings Agency (TBA) has continued to implement a special project of constructing 10,000 affordable housing for Public Servants in various regions of the country under the initiative of the government. By July 2015, TBA reported to have spent TZS6 billion (US$2.8 million) for construction of 850 units in Bunju B area in Dar-es-Salaam.11

Additionally, the International Finance Corporation (IFC) in its efforts to support growth of the private sector in Africa through investments and advisory services, has injected equity investment in M Mortgage Finance, a greenfield mortgage finance bank being set up in partnership with Bank M Tanzania Limited, HFDC India and prominent investors. The company which is currently waiting to receive its license from Bank of Tanzania will be the first specialized mortgage lender in Tanzania. All these initiatives are expected to further boost the growth of the mortgage market.>>continues page 32&33

Real Estate


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ASSET VALUATION & CODINGPROPERTY MANAGEMENTLAND SURVEYESTATE AGENCYREAL ESTATE CONSULTANCYINSURANCE BROKERAGE


Investing in real estate can be very lucrative; however, getting started in real estate investments requires a large amount

of capital. That being said, if you do not have hundreds of thousands of dollars on hand, there are other options to invest in real estate without buying a physical property.

Invest in a REIT.A REIT, or real estate investment trust,

is a company that owns and manages real estate and related assets, such as mortgages or mortgage bonds. The majority of a REIT’s income and assets must be linked to real estate. To qualify as a REIT, companies must meet these standards, plus additional rules defined by the Securities and Exchange Commission.

• Invest at least 75% of total assets in real estate assets• Derive at least 75% of gross income from property rent or mortgage interest

• Have a minimum of 100 shareholders after its first year as a REIT• Have no more than 50% of shares held by five or fewer individuals• Pay at least 90% of taxable income as shareholder dividends

That last rule is significant for individual investors. REITs are not simply companies that own real estate; they are businesses that provide cash flow to their investors. If you invest in a REIT with dividend reinvestment, you can grow your portfolio until you reach a point where you can purchase individual properties yourself, or continue to invest in managed real estate portfolios.That last rule is significant for individual investors. REITs are not simply companies that own real estate; they are businesses that provide cash flow to their investors. If you invest in a REIT with dividend reinvestment, you can grow your portfolio until you reach a point

where you can purchase individual properties yourself, or continue to invest in managed real estate portfolios.

Example of REIT in East AfricaFor Kenya. The STANLIB Fahari I-REIT is Kenya’s first Real Estate Investment Trust (REIT). The Fund aims to provide investors with a steady stream of income and capital growth by investing at least 75% of its Total Asset Value (“TAV”) in real estate in strategic locations within Kenya with a maximum of 25% invested in cash investments or cash-like instruments.

For Tanzania. Watumishi Housing. WHC-REIT was licensed by the Capital Market and Security Authority (CMSA) in 2015 and became the first fully-fledged REIT to be established in Tanzania and East Africa. As a property developer, WHC-REIT is the main implementer of the Tanzania Public

HOW TO INVEST IN REAL ESTATE WITHOUT BUYING PROPERTY


Servant Housing Scheme tasked with building of 50,000 housing units in five phases commencing from FY 2014/2015. Houses shall be sold under mortgage arrangements to public servants and other eligible members of the public across Tanzania. Investment in Real Estate Investment Trusts (REITs) is a new concept in Tanzania and yet it provides an immense opportunity for the general public to participate and create personal wealth as well as contribute towards overall economic development. WHC-REIT seeks to work with other national and international fund manager and other stakeholders to develop this market in a manner that is beneficial to all parties.

Invest in a Real Estate Focused CompanyMany companies own and manage real estate that are not structured as a REIT. These stocks typically pay a much lower dividend than a REIT, but the companies have more freedom to reinvest profits to expand.

Some companies in other industries behave like a real estate company even though that is not the primary service they offer. Examples include hotel chains, shopping mall and strip mall managers, and resort operators.Of course, there are traditional real estate companies available for investments as well. Companies include real estate services companies like RE/MAX Holdings Inc. (RMAX), and commercial real estate operators like CBRE Group (CBG)As with any individual stock investment, always do plenty of research before making an investment decision. Investing heavily in one stock or industry relative to the rest of your portfolio opens you up to portfolio concentration risk.Invest in Home Construction.Real estate is not just about buying and profiting from existing companies. There is an entire industry of homebuilders responsible for developing new neighborhoods in growing

metropolitan areas. These companies may be involved with multiple aspects of the home construction process.When evaluating homebuilders, look at all aspects of the business. Ask yourself if the company is focused on a region with poor real estate performance, if the company is focused on only very high or low-end homes, and compare the focus to real estate trends.Keep in mind that homebuilder performance can be highly correlated to the economy. When job growth is strong, people want to buy new homes. When the economy is sluggish, new home sales tend to fall.

The Bottom line.Investing in individual properties requires a lot of capital and comes with a high risk. Investing in other options available through the stock market, REITs, mutual funds, and ETFs can give your portfolio real estate exposure without having to lay out hundreds of thousands of dollars.As with any investment, investing in real estate and related companies comes with some risk. Evaluate any investment option before buying to ensure it lines up with your investment goals.The global real estate have performed well in recent years, but not all markets are alike. Some real estate exposure provides an excellent hedge against other market fluctuations, but too much real estate concentration leaves you open to losses when the real estate market falters, as it did in the recent real estate bubble burst and mortgage crisis.However, once you have a good understanding of your investment goals and how real estate can play a part, you can confidently invest and make real estate a portion of your portfolio for both short-term and long-term investment goals.

By Eric Rosenberg.

HOW TO INVEST IN REAL ESTATE WITHOUT BUYING PROPERTY

“Keep in mind that homebuilder performance can be highly correlated to the economy. When job growth is strong, people want to buy new homes. When the economy is sluggish, new home sales tend to fall

”

”

REAL ESTATEThe ABCs of REAL ESTATE MARKET

ExpropriationSeizure of private property for public use by an entity with such legal authority. See. Condemnation, eminent domain.

Letter of intent (LOI) the expression of a desire to desire to enter into a contract without actually doing soExample: After a preliminary meeting, the Five Stars Development Company writes to landowner, we wish to enter into a contract to buy your land and will further pursue this matter in coming days. This letter of intent does not commit either party to purchase, sell, or lease.

Tenancy the right of possession of real property. May refer to ownership or occupancy.

Torrens system A title registration system used in some states; the condition of the title can easily be discovered without resorting to a title search

Stable mortgage A mortgage loan instrument that combines fi xed and adjustable rates in the same loan. The rate applied to the loan is a blend of fi xed rate and a rate that varies according to an index.Example: There two versions of the stable mortgage: one with a 50/50 mix and one with a 75/25 mix of fi xed and adjustable rates. If the loan is originated at an interest rate 6% and the index justifi es changing the adjustable portion of the ratio to 7%, the 50/50 option would carry a rate of 6 ½ %, while the 75/25 option would adjust to 6 ¼ %.

Reappraisal lease:A lease where the rental level is periodically reviewed by independent appraisers. Often, the lessor and lessee will each select an appraiser; if they do not agree on a value, they will choose a third appraiser.Example: In the 20-year reappraisal lease, A renter agrees to pay the landlord an annual rent of 9% of the property value. Every 5 years the property will be reappraised to determine the rent.

Valuable consideration A type of promised payment upon which a promisee can enforce claim against an unwilling promisor. Includes money, extension of time, and other equivalents for the grant. Distinguished from good CONSIDERATION which may be love and affection toward a relative, generosity, and the like.Example: A man promised to give certain land to a suitor of his daughter, provided they marry. This was not considered valuable consideration, so the suitor could not enforce it and he did not marry the daughter.

Quitclaim deed a DEED that conveys only the grantor’s rights or interest in real estate, without stating the nature of the rights and with no warranties of ownership. Often used to remove a possible cloud on the title. Contrast with general warranty need.Example It is discovered during a title search that a certain property was at time held by a partnership that later abandoned the property. To obtain a marketable title, the current owner obtains quitclaim deeds from all partners in the old partnership.

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6. Tanzania Mortgage Market as Compared to the East African Neighbors

Compared to other countries in the region Tanzania still has a relatively smaller mortgage market, although it is growing rapidly. Mortgage debt outstanding as a proportion of Tanzanian GDP was equivalent to around 0.45 percent of Gross Domestic Product as at the end of the fourth quarter of2015. This is lower than its East African neighboring countries.

Figure 3 right shows mortgage debtto GDP for selected countries including Kenya, Uganda and Rwanda.

7. Trends on Average Loan Size:

Average loan size as at 31st December 2015 was TZS 106 million which is equivalent to US$ 49,112.35. This is an increase from average loan size of TZS 69million (US$ 31,970) reported as at 31st December2014. The average loan size across mortgage lenders varied greatly, reflecting different strategies and customer bases. Akiba, EFC and DCB who target lower income customers had much lower average mortgage loan sizes than the likes of Stanbic Bank whose average loan size was TZS 364million (US$ 168,796.66).

Figure 4 right shows average mortgage loan sizes across different lenders.

worth TZS 43.9 billion (US$ 20,333,487.73) to seven of its member banks. As at 31st December 2015, refinancing and pre-financing mortgages advanced by TMRC to its member banking institutions was equivalent to 12 percent of the total outstanding mortgage debt.

With the approval of US$ 60 million additional funding by the World Bank through the International Development Association (IDA) for the Housing Finance Project in Tanzania in 2015, TMRC‘s contribution to the growth of the housing market is expected to significantly increase over the coming years as the new financing will build on the achievements of the ongoing 2010 Housing Finance Project (HFP) which has overseen the establishment of TMRC which is playing a key role in developing the mortgage market.

In the four years that TMRC has been operational, a significant impact has been noted in the mortgage market. The number of banks offering mortgage loans has grown from only three banks in2010 to 26 in 2015, and mortgage repayment periods increased from the

8. TMRC Supporting Market Growth through Provision of longer Term Funds to Members:

A key element in the growth of the mortgage market in Tanzania continues to be the provision of long term funding both in the forms of refinancing and pre-financing by the TMRC. The TMRC was established in 2010 under the Housing Finance Project (HFP) which was set up by the Ministry of Finance in collaboration with the World Bank and Bank of Tanzania in alignment with Tanzania’s five- year National Strategy for Growth and Poverty Reduction (MKUKUTA) and the Tanzania Development Vision 2025, which highlight the importance of affordable housing, access to finance, and capital market development.

Figure 5 shows the overall contribution of TMRC in the mortgage market in the four quarters of 2015.

TMRC currently has 12 borrowing members (all of which are now offering mortgage loans), and has already extended loans

maximum of seven yearsthat was previously offered to 20 years that banks offer now. The additional IDA funds will put TMRC on a stronger path to sustainability by raising its own funding through other means, such as local bond issuance.

Another initiative set up under the Housing Microfinance Project (HFP) is the Housing Microfinance Fund (HMFF) which is geared toproviding long-term loans for lower income earners who currently lack access to housing finance either for the purchase of a home or for home improvements. The fund has officially begun its operations this year and on 31 July 2015, the first disbursement of TZS1 billion (US$ 463,177.40) was made underthe fund to DCB Commercial Bank Plc with the total credit line to the bank being TZS 3 billion (US$ 1.4 million). This has marked the first step towards significant progress of the microfinance sector. DCB is looking to lend the funds to low income earners to renovate or construct new houses.

>>continued from page 12


Anna-Maria Shija MugasaRisk & Compliance Manager|Tanzania Mortgage Refinance Company(TMRC)


A building permit is the formal permission to begin the construction, demolition, addition or renovation on the property. Building permit is the type of authorization that

must be granted by a government or other regulatory body before the construction of a new or existing building can legally occur. A local authority permit always authorizes the alteration, demolition, construction, enlargement, repair or replacement of any building or structure.Building permits regulate the type of construction allowed in a community and ensure that minimum building standards are met. The permit process protects the owner’s interests, the community and helps to ensure that any new construction is appropriate and safe.Whether you are modifying a structure or building a house, you are responsible for getting the right permits before you start work. Apply for the permit through your local municipal government office. Depending on the complexity of the project, some permits are issued immediately, while others may require inspection of the plans.As part of the building permit process, Local government staff must review the plans to ensure they comply with the area Building Code and other Applicable Law.Building permits are economic indicators that can be used to determine the health of the housing sector. In many developed countries, building permit data is released each month, the building

permit report is closely watched by economists and investors alike and give a major hint as to the state of the economy in the near future.Economists look at building permits to determine how well the economy is performing. If more building permits are being issued economists may assume that more investment is being allocated to the housing market. A decline in the number of housing starts relative to building permits may indicate that planned construction is being put off, possibly because of unfavorable economic conditions.The city requires permits to ensure safe building, coordinated development, effective land use, and high quality site planning.

The required documents for obtaining a building permit in Tanzania• Architectural or engineering drawings and calculations including site layout and location plans, elevations, sections of the building including storm water drainage, fire protection, driveways and parking. All drawings should be signed by a registered professional architect and all the detailed structural, electrical, plumbing and engineering installations by a registered professional engineer.

• Title deed showing ownership of the land• Receipts of the payments of land rents and other statutory fees and changes of land use if any

Prepared byYusuph Mhando. | [email protected]

The author is an associate consultant, Darproperty Tanzania

BUILDING PERMIT IN TANZANIA

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While housing prices in Kenya’s residential real estate market stabilized late last year, land costs

have seen signifi cant increases, indicating a rise in demand for apartment units.

According to the latest housing price index from the Kenya Bankers’ Association, released at the end of January, average housing prices edged up by just 1.14% in the last three months of 2015. This marked the third consecutive quarter with a less than 2% period-on-period increase.

Across the board As average housing prices have declined, land prices in the capital have recorded signifi cant growth. Prices in Nairobi have risen fi ve-fold since 2007, with average land costs in the city up 9% in 2015.

While the centrally located Upper Hill area of Nairobi had the most expensive land in 2015, averaging around KSh206.2m ($2m) per hectare, land prices in outlying areas, such as Kitisuru, Loresho and Gigiri, increased at the fastest pace.

According to a recent survey by housing consultancy HassConsult, land prices in Nairobi’s satellite communities rose by around 11.9% last year, almost three percentage points ahead of comparable acreage in the city centre.In Kiserian, a satellite community south-west of central Nairobi, land prices rose by more than 25% over the period.

“With the devolution plan driving infrastructure development in outlying areas, there are signifi cant prospects for further real estate

sector growth,” Charles Odere, chairman and CEO of real estate company RE/MAX Kenya, told OBG.

Multi-unit focusLand infl ation has already begun to change the shape of Kenya’s property market, prompting a shift away from standalone houses and towards multi-unit buildings.

The KBA noted that apartments, which saw relatively higher price movements last year, accounted for more than 90% of the units offered in the fourth quarter, followed by maisonettes (5.8%) and bungalows (1.41%).

“This justifi es the increased appetite and relative affordability for apartments by an apparently growing middle class,” the report said.

KENYA’S RESIDENTIAL PROPERTY MARKETSHIFTS TO MULTI-UNIT HOUSING

The Darproperty - August 2015 | 41

Developers are increasingly building up rather than out, as they seek to maximise returns against a backdrop of limited urban space.

“We are seeing a lot of lending for housing being channelled to residential projects in the outskirts of major hubs like Nairobi,” Jared Osoro, director of research and policy at the KBA, told OBG. “Lending for commercial development of multi-unit housing is particularly significant.”

Appetite for new multi-unit housing saw the value of approved residential building plans climb by 11.2% in 2015, according to data from the Nairobi Directorate of Planning, Compliance and Enforcement.

Just over 60% of the approved building plans were for residential developments in and around the capital, for a total value of KSh147bn ($1.5bn). Investment in non-residential developments, meanwhile, declined

marginally, falling by less than 1% to KSh95.18bn ($936.5m).

Shortfall in entry-level housing Despite continued investment in boosting residential housing stocks, Kenya continues to experience a nationwide housing deficit.

Although 50,000 new residential units are added to housing stocks annually, national demand for new housing runs at around 250,000 units per year, Jacob Kaimenyi, cabinet secretary in the Ministry of Land, Housing and Urban Development, told media earlier this year.

In early February the government announced plans to provide both financial and non-financial incentives to the private sector to help bridge this 200,000-unit gap, which mainly exists at the lower end of the housing market.

Among the incentives proposed is the provision of serviced land to developers, access to

affordable financing and legislative reforms of land-related laws. A national housing fund to help finance social and low-cost housing is also being considered, Kaimenyi said.“Financing remains very costly in Kenya, not just for buyers but for developers as well,” Chetan Hayer, director of real estate developer Nirbhau Group, told OBG. “In addition to these kind of incentive programmes, we need to reform the way that mortgages are structured to ensure funding can be released during construction, not just when properties are completed.”

The government will be looking for these incentives to encourage some developers to shift their focus towards mass housing schemes and entry-level residential projects. Such projects could become more attractive to the private sector, particularly if demand and sale prices in the middle-to-high end of the residential sector continue to stall.

© Oxford Business Group 2016

market insight

The Darproperty - March 2016 | 41

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House for Rent Mikocheni Bnear Academic primary school 3 bedrooms,

2 bathrooms, enough parking,+255 762 210 893 / +255 713 301 172

House for sale.The house is 500 meters behind Shamo parkat Goigi Bagamoyo road Clean title, 900 sqm,

0715 686 051

MASAK

I

House for sale Peninsular with the 2000 sqm plot size. Ready to move in house.

Price Negotiable0763 382 231

SALE Plot for sale at magomeni usalamaAlso available for rent at

Negotiable Price, We accept your Offer0712 619 601

MBEZI B

EACH

Big compound with big go-down capable of up to20 containers, 3 phase electricity,

DAWASCO connection, 2 bedroom house fully kitchen,dinning room and 4 bedroom servant quarter

0688 210 891/ 0758 210 891

790 sqm to let, ideal for super maket, bank,clinic.22 USD per sqm inclusive of service charge

0763 382 231

3 Apartment in one compound2 bedrooms self contain. 2 gates

Easy access to harbour and city center.+255655323286 [email protected]

3 bedroom House for sale at Msisiri, Plot no. 16,Block 26 Kinondoni with 2 Servant quarters.

Price Negotiable0757 714 476/ 0786 658 658

Office space to LetMorogoro and Bibi titi Road.

0789 865 933 / 0788 44 04 66

SALE TSHS 800mOn the way to Ndoto Polepole farm, beautiful serene

30 by 30 square meter plots,3 plots available for sale

+255 786 011 755 or 763 011 755

MIKOCH

ENI A

SALE Tsh 260m

CITY C

ENTR

E

RENT

Shreeji Tower3 bedroom fully furnished

+255 715 000 642

500m behind Shamo park at Goigi Bagamoyo road. Clean title, 900 sqm, main water supply,

three phase power connection. 0715 686 051

LIST YOUR PROPERTY HERE FOR ONLYTSHS 30,000/= VAT EXCL.

simply call 0767 200 [email protected]

RENT $21

UPAN

GA,

A fully furnished 4 bedroom 3 bathroom eco houseelectric fence, garden, parking, 24 Hr Security

0713 856 962

$1,500

MIKOCH

ENI B

Beach plot for sale near Millennium Hotel100 meters from the ocean with

government offer of 35 years0754 310 137 / 0713 451 395

SALE $177,000.

BAGA

MOYO

SALE Tshs 340m

MBEZI B

EACH

SALE TZS. 23,000 @SQM

MPIJI

MIKOCH

ENI,

RENT $700

SALE TSHS 400m

SINZA

MBEZI B

EACH

SALE 360m

MLANDIZ

I

Plot for rent TangaWell fenced more than 30 acres plot at kasela.

0754 324064 0754 529 829

Plot for sale located at Kimbiji Moris,43 km from ferry,

230m from kimbiji beach, Area 3.3 acres.0787 992 455/ 0714 633 499/ 0715 283 803

RENT

CITY C

ENTER

Property ideal for Restaurant cum Bed andBreakfast, Accessible by Tarmac road

0767 120 250/ 0787 120 250/ 0712 722 502

RENT/Joint Venture

MBEZI S

ALA S

ALA

SALE TSH 55m

KIGAM

BONI

SALE Tshs 250m

MAGOM

ENI

RENT $22

ILALA

RENT

3 Bedroom house Sinza kwa Remmy nearThe Place Fast Food Restaurant

288 SQM (NEGOTIABLE)+255 767 422 258

Goba, 31,000 per square meter8 acres available for sale

+255 786 011 755 or 763 011 755

GOBA

SALE TSH 31,000/=@ SQM

KINON

DONI

SALE TSHS 400m

TANGA

CLASSIFIEDS

Plot for joint venture at msasani kimweri street0712 86 39 51

18 acres property for sale at masaki peninsularideal for investment project. Negotiable Price

0763 382 231

Plot size 1985 SQM+255 766 888 333

+255 716 444 888 +255 766 100 100

Apartment in Mikocheni B, 5 mins from BARAKA PLAZA2 & 3 Bedrooms,Semi furnished, Unfurnished

+255 713 299 929 | +255 758 008 866 |+255 758 188 828

MASAK

I

2 independent unit house at Masaki,Chore road with 3 bedroom

units have kitchens and 2 bedroom in the upper levelstandby generator and Dawasco.

0767 264 900/ 0787 264 900

RENT $3,000/ 2000 House to let opposite Mlimani City(100 meters from UDSM road).

3 bedrooms, 24 Hr Security, electric fence,garden parking, servant quarters

+255 713 690 220

KIBAD

A

Plot for sale at Kibada, 765sqmBlock 15 near main road with the title deed

0713 803 069

Beach property available for sale in the peninsular. Price Negotiable

0763 382 231

3 bedroom, Unfurnished. Generator, Parking,Good Neighborhood, Balconies, Fitted Kitchen.

+255 784 772 268+255 784 772 268

2 bedroom house, 1 self-contained Parking space Furniture negotiable High ceilings Private garden

+255 754 781 240

3 bedroom house, 1 self-containedLarge compound Parking space

Furniture negotiable High ceilings Private garden +255 754 781 240

SALE TSH 40m

Tegeta Mivumoni, 1600sqmPlot for sale at Tegeta, Mivumoni. no title deed

0713 803 069

MSASA

NI

RENT $ 1000/ SALE $ 80,000

KAWE T

PDF G

ROUN

DS

RENT $800

For Residential Houses - 20 by 30 square meter plots 3 plots available for sale

+255 786 011 755 / 763 011 755

5 bedroom house for rent at Ungindoni Kigamboniwith large compound, servant quarter and garage

0685 215 737 Office Space to Let at Azikiwe Street near NMB Bank.+255 788 440 466 / +255 789 865 933

LIST YOUR PROPERTY HERE FOR ONLYTSHS 30,000/= VAT EXCL.

simply call 0767 200 [email protected]

SALE

NO PHOTO

NO PHOTO

MASAK

I

Apartment for sale in Kariakoo - Tandamti St,3 Bedrooms, 2 bathrooms.

+255 715 71 07 07

FOR SALE TZS 150M

KARIA

KOO

SALE

MASAK

I

RENT $1200

MIKOCH

ENI B

Joint venture

MSASA

NI

SALE TSH 45m

TEGETA

KINON

DONI

SALE TSHS 120m

CITY C

ENTER

RENT

MLANDIZ

I

Bunju B these plots are suitable for development a School, Hotel, Multi-Purpose Hall,

3 Acres +255 786 011 755 / 763 011 755

RENT $ 800

Villas in Mikocheni Area,5 mins drive to Kairuki Hospital,

Shoppers Plaza & Milenium Towers.+255 715 180 872 | +255 784 691 414

RENT $750

KIGAM

BONI

Plot for sale at Kigamboni Kibada800 meters from the road, with 3500sqm.

with Tittle Deed. NO AGENTS PLEASE0769 115 502

SALE TSHS 185m

KIGAM

BONI

RENT $1500

MIKOCH

ENI

House to let opposite Mlimani CityRENT $900

MWENGE

SALE

MASAK

I

SALE TSHS 51,000 /@sqm

BUNJ

U B

SALE TSHS 30,000/@sqm

BOKO

KAWE T

PDF G

ROUN

DS

House for sale at Masaki peninsular with the1500 sqm plot size. Price Negotiable

0763 382 231

48 The DarProperty August 2014

NIKUZE REAL ESTATE AGENCYMorogoro RoadP.O Box 10032 Dar Es SalaamTel: +255 789/754/715/ 363 800Email: [email protected]

PHOTO & CO.ESTATEKahama Road/Msasani peninsulaP.O BOX 105121 Dar es Salaam.0786 962 444Email; [email protected].

PROPERTY CONSULTANCY & SERVICES LTD2nd Floor Kevin House - Samora AvenueP.O BOX.7152 - Dar Es Salaam+255 22 2120402, +255 713 690 [email protected]

PRESTIGE PROPERTIESPhone: +255-713-764-447/ 0767471293Tel:+255-22-266-4373Email:[email protected]

TANGANYIKA ESTATE AGENTSSea Cliff Village (next to Sea Cliff Hotel)Plot 532, Toure Drive+255 717 032 [email protected]

TRELD COMPANY LTDP.O BOX 7656 Dar es SalaamLocation Msasani Peninsular off toure drive+255 732 222 888, +255 716 777 [email protected]

ARUSHA AWESOME HOMES AND PROPERTIES. Shanti House,Plot 58 Block E Sokoine RoadP. O. Box 249 Arusha, [email protected]+255 754 337 899 / +255 786 337 899

HOMES & PROPERTY AGENCIES LTDLand Surveyors & Property ManagersP. O.Box 10079 ArushaBoma Rd. Arusha0787 [email protected]

TANGANYIKA ESTATE AGENTSShoprite Complex,+255 785 984 467 [email protected]

ZIPO HOMESRivergardens Business Park, Rm 4P.O Box 20 Usa River, Arusha+255 787 474 580/+ 255 754 320 [email protected]

MWANZAESTATEMwanzaestate.com+255 714 245 [email protected]

Zanzibar - properties.comTel: +255 774 44 19 07Hotel Marine - Malindi Zanzibar

ABLA ESTATE DEVELOPERS & AGENCY CO.LTDMikocheni Opposite Shoppers PlazaP.O BOX 3810, Dar es SalaamTel +255 22 2772506E-mail: [email protected]

CHINESE PROPERTY AGENT TRANSLATORMsasani Road, MasakiEnglish Chinese TranslatorDealing with your chinese clientsms 0756 50 11 [email protected]

GIMCO ESTATE AGENCY LTDSamora Ave, NIC Investment Hse,P.O BOX 8382 Dar es salaam Tel +255 22 2120988Mob +255-784 900041

GOLDBERG COMPANY LTDReal Estate & Mining TradeP.O. Box 22159 Dar es SalaamOld Bagamoyo Rd, Mikocheni B,0715 270 517 / 0754 270 [email protected]. goldbergtz.com

NEW DAY PROPERTY AGENCY COMPANYMwinyijuma Road - Kinondoni,Room no.84, UVCC Complex+255 753 645 434, +255 717 035 552+255 767 575 758www.facebook.com/ raymond samson Laizer

KEY REAL ESTATE SOLUTIONSRegent Chwaku North UrsinoTel: +255 22 27016740715 053 803, 0786 053 803,0754 28 46 84mariam@keyrealestatesolutionstz.comwww.keyrealestatesolutionstz.com

MY BEACHOld Bagamoyo Rd. opp Yuasa auto impexP.O BOX 105200. Dar es SalaamTel; +255 22 2701710

Real Estate AgentsDirectory in TanzaniaDAR ES SALAAM ARUSHA

MWANZA

ZANZIBAR

ENHANCE YOUR VISIBILTY & CREDIBILITYGET LISTED HERE WITH YOUR LOGO

Tshs. 48,500/= Monthly / Tshs. 500,000/= Annually+255 784 23 89 62, 0688 75 18 68 | [email protected]

+255 756 960 960, +255 714 444 250, +255 752 444 606.

ARUSHA +255 653 005 530, MWANZA +255 653 005 535,

[email protected] TZREALESTATE.CO.TZ


ENHANCE YOUR VISIBILTY & CREDIBILITYGET LISTED HERE WITH YOUR LOGO

Kshs. 2,500/= Monthly / Kshs. 25,000/= Annually+255 784 23 89 62, +254 720 35 34 37 | [email protected]

AXIS REAL ESTATE 0727 5728360713 908 [email protected] Nairobi Kenya

ARK CONSULTANTS LTDNo. 16 Nas Apartments,Milimani RoadP.O. Box 42093, 00100Tel: +254 20 2726870www.arkconsultantsltd.com

CORAL PROPERTY INTERNATIONAL LTD+254 735 [email protected]

DUNHILL CONSULTING LTDHevea Court, Block A3, No.15,Eldama Ravine Road, WestlandsTel: +254 786 386 445www.dunhillconsulting.com

FINANCIAL AND PROPERTYCONSULTANTS LTDArbor House, Arboretum DriveP.O.Box 14459-00800 NairobiTel: +254 722 524383www.fapl.com

HALIFAX ESTATE AGENCY LTDCrossway Road, WestlandsTel: 3741269/[email protected]

HASS CONSULT LTDABC Place, 1st Floor, P.O. Box 14090, NairobiTel: +254 20 4446914www.hassconsult.co.ke

KARENGATA PROPERTY MANAGERSHead office: No.47 Marula lane, KarenP.O BOX 1552, Karen. 00502,Nairobi.0733613744 / 0735099932

KENYA VALUERS AND ESTATE AGENTS LTD3rd Floor, Museum Hill Centre,P.O. Box 48209, Nairobi Tel: +254 20 3745697/512 www.kenyavaluers.com

KNIGHT FRANKLion place, Waiyaki wayTel +254 20 4239000 / 0733 [email protected]

PENTA KENYA LTDTropical lane off Wood AvenueP.O Box 101493 00101, NairobiTel 0731471872 / 0711 [email protected]

PROLAND REALTORS LTD6th Floor, Maendeleo House,Monrovia StreetP.O Box 29509-00100 NairobiTel: +254 720 353437www.prolandrealtors.co.ke

PROFESSIONAL PROPERTYMANAGEMANT LETTING & SALES0708 8484810733 785698 160662 Nairobi Kenya

SEMA ESTATE AGENTSSpringette Office park, Block H2, Lower Kabete Road.Tel 020 2017940 / 0725 [email protected]

Tel +254 20 4239000 / 0733 603260COMING SOON

RWANDAREAL ESTATE

AGENCYDIRECTORY

Real Estate AgentsDirectory in Kenya

ARUSHA

ACB........................................................................15ADAMAS.................................................................3AYUB......................................................................31BERGER .................................................................52CES.........................................................................39CHOKOLE.............................................................38CINAN PLAZA......................................................19CRDB BANK...........................................................5DAR CERAMIC CENTER........................................4DAT..........................................................................2DCB BANK............................................................23HOTEL SAPHIRE ..................................................29INDIAN OCEAN APARTMENT............................25IVORY TOWER.......................................................9JAMAL...................................................................27KILI GOLF..............................................................13MARINA........................................................20&21MOSES..................................................................47 MWANZA.............................................................30OCEAN LINK........................................................47OLJORO TAN CITY.....................................34&35PPF..............................................................1,11&14PROPERTY CONSULT..........................................19REEF..........................................................................6REMAX..................................................................21SHANGHAI ELEVATOR.......................................22SIMBA CEMENT......................................................1SWISS TOWER....................................................19TANGANYIKA ESTATE AGENT.............................7TEMSO..........................................................44&45VITAFORM...........................................................16

PATRON PAGE NO

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PublisherDarproperty Tanzania

Editor In ChiefLarson Chumi

[email protected]

Business Development & ProductsAbdallah MugasaYusuph MhandoJaneth Samwel

Designs & Layouts Dennis MaungaMussa Khamis

[email protected]

Marketing & SalesMichael Francis

[email protected]

DistributionBoniface Metta

Online Content ManagerMbwana MburaAloyce Mkude

Finance Administration ManagerIsmail Mutanda

Public Relation OfficerMaria Urassa

Accounts ExecutivesGrey Mateni

Faraji SenkoroMoreen MremaLucynancy John

Office Assistant.Brigita Laurance

Regulatory & Legal AdvisorsABC Attorneys

Mikocheni B - Bima road,P.O. Box 105499 Dar es Salaam

+255 22 2780 517+255 784 238 962,+255 713 751 868

[email protected]

DistributionShould you have problems in obtaining copies of DarProperty

Magazine, please contact+255 713 888 036+255 717 270 791

For Comments, Complains & [email protected]

Country Director - KenyaXavier Nanchengwa

This magazine is registered by the government of United Republic of Tanzania under the newspaper Act no. 3 of 1976 and the Postmaster General. Registration No. 00005562

The Darproperty is published by Darproperty Tanzania Company. All rights reserved.The contents and opinions expressed herein are not necessarily the representation of publisher’s view. All material published is deemed to originate from the author and will not accept any liability whatsoever in respect that have been sourced from contributors. Users are required to make their own judgement on the details contained in each advertisment. While every caution is taken in compiling the contents of this magazine, the publisher will not accept any liability for the effects arising thereof. No part of this publication will be reproduced with out written consent from Darproperty Tanzania Company.

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darproperty march 2016

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