Tanzania Real Estate Development Receives Push

The Tanzania minister for Land, Housing and Urban Settlement Development, Capitan John Chiligati, has recently issued a challenge to the National Housing Corporation (NHC) to begin focusing on Tanzania real estate development by constructing affordable residential houses and shopping centers.

Because of limited space in the Moshi municipality, Capitan Chiligati has advised the NHC to construct new buildings vertically.

In addition, he has guaranteed that the government will fully support these projects in order that there is a smooth transition from beginning to end.

According to a report by The Guardian, last week Capitain Chiligati told his employees at the ministry that there was a clear market for this type of construction project that was not yet being taken advantage of.

“You should widen the scope of your core function of just being a landlord and seriously embark on real estate’s development,” he said.

Capitain Chiligati went on to emphasize the current need for land officers and surveyors in order to educate people on land laws and policies so as to prevent some of the common and avoidable land disputes.

According to the minister, land is a very valuable asset, but it only becomes a live capital after it has been surveyed and been granted title deed that will allow its owners to qualify for credit services from various financial institutions.

“We are making Tanzanians suffer because we have not helped them to turn the land they own into live capital,” said Capitain Chiligati, who went on to advise regional governments in the country to allocate money in their budgets to survey some of the village plots in order to make it possible for the villagers to use them as collateral in obtaining credit, which will help to alleviate poverty in the rural areas.

Meanwhile, the minister applauded the decision by the NHC Moshi Branch to begin their largest construction project in the Moshi municipality in the past 15 years, a new five-storey building that is intended to house 24 shops, offices and residential rooms; these rooms will all be made available for sale after construction has been completed.

In addition to new construction, the NHC Moshi Branch has also budgeted 450m Tsh for the rehabilitation and maintenance of some of its buildings in the municipality.

According to James Kisarika, the NHC Moshi Branch Manager, his corporation is currently responsible for 111 residential houses with 701 tenants as well as 301 business centers.

Mr. Kisarika went on to say that not only has the rent collection in his municipality increased, but the amount of outstanding debts that have been collected has also increased.