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DECEMBER, 2015 | ISSUE No. 13 ISSN - 1821 - 987X
Five emerging satellite cities of East Africa
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The 7 Eleven-Kawe a Proposed Flagship Project of the National Housing Corporation (NHC)
PIL talks to the Director General of National Housing Corporation (NHC) Properties
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PIM. Issue no.13, Dec 2015
issue Contents
Upfront In this
Contents
Cover Story
www.propertyinternationalltd.com DECEMBER, 2015 | ISSUE No. 13 | ISSN - 1821 - 987X
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Q&A
PIL talks to Nehemiah Kyando Mchechu, Director General of the National Housing Corporation (NHC), on success, satellite cities, and private investor opportunities.
New & Views
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10
Plots for Sale in Kigamboni (Hayat Residence)
How Disasters and Other Opportunities Affect our Property Markets
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Plots for Sale (Bokotimiza - Kibaha)
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Some Top 8 most luxurious property designs in the world
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To Insure or not to Insure?
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The Definition of the Contract
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Plots for Sale in kigamboni
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Why you should bank with Amana Bank
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14
Decorating Street for Christmas
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Plots for Sale in kigamboni
Palms Kigamboni
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The Hallmarks of a true Property Investor in 2016.
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Tanzania’s president commissions Chinesebacked natural gas pipeline
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Property International Introduces Office Space Planning Services
New Plots for Sale
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Plots for Sale in Bagamoyo - Kitopeni East Africa’s 5 Emerging Satellite Cities of 2015 Luxurious Plots for Sale in Kigamboni
New Plots for Sale
PIM. Issue no.13, Dec 2015
Foreword
Upfront
A Word from Managing
Editor
Dear reader
T
he increased demand for middle-income and affordable housing in Dar es Salaam and major towns in Tanzania is an indication of a need to provide serviced plots for this segment of the economy. The serviced plots here mean ready sites, fully surveyed, having access to utilities or services such as water, electricity, roads and sewerage. The plots are usually ready for construction. The construction can be either self-build or custom build. Self build projects are where an individual directly organizes and commissions the design and construction of their new home. Custom build is when one works closely with a developer to build a new home. Property International, a real estate development company, is committed to the course of the development and growth of serviced plots in the country and the region. One of the value addition of our services is that we work with relevant ministries and land authorities in our country to ensure that all business transactions initiated on land matters are above board. Almost all the plots we put for sale are serviced at least with passable roads, near-by electricity supply and water supply access. Most of our flagship projects in Dar es Salaam are found in Kigamboni, Kibaha and Vikuruti and are also highlighted in this 13th edition of Property International Magazine. Our clients can also enjoy various land financing facilities or loans offered by our banking partners such as Amana Bank, Tanzania Postal bank among others. To improve our services portfolio, which includes selling developed plots and property management services, Property International is proud to introduce Office Space Planning services to support corporate institutions by shouldering the responsibilities such as office space analysis, project costing and project management.
Merry Christmas and happy Prosperous 2016.
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PIM. Issue no.13, Dec 2015 Upfront
Editors note
Dear Readers
O
ver the past few years, I have witnessed the city of Dar es salaam being transformed from that old town to a modern city with fancy buildings mushrooming in different parts of the city. I have always believed that Tanzania is the world’s best –kept secret and that Dar Es Salaam in particular is destined to become the Hong Kong of East Africa. It is already showing signs of this with the robust trade that we see in places like Kariakoo where people of different nationalities from as far south as Botswana coming to buy goods there. Certainly, the creative skills of Tanzanians are burgeoning. I am very proud to see our architects, designers, decorators, artisans and artists gaining international recognition. Lets hope the entire country will see the such developments, especially different regions.
I have recently been following the National Housing Corporation (NHC) launching simultaneous projects, the Morocco square Towers in Kinondoni District, the Kawe project and many others and I get excited to see a beautiful city emerging. In this Christmas issue, we’ve included 8 amazing properties that you must visit. We sat down with the Director General of NHC Mr Nehemia Mchechu and were inspired by his resolve to change the face of the country by building audacious structures. The Seven Eleven project in Kawe and other developments in the satellite city of Kigamboni are at the forefront of changing Tanzania's image. This being my first ever property magazine to work on, I am thrilled to learn about properties in Tanzania and Africa in general. I would like to wish you a happy Xmas and prosperous New year, Enjoy the read
PROPERTY INTERNATIONAL LTD DREAM TO REALITY
Managing Editor George Obado
Editor
Emelda Mwamanga
Designing & Layout Joseph Steven Archie
Contributors
Dominic Mwakifulefule Ifigenia Salazar Anselmi Gloria Korosso Fatma Mungia
Advertising & Marketing George Colyvas Hayat Abdul Aziz Maria Mwaluko Latifa G. Cynthia
Distribution
Kudula Ramadhani
Published & Distributed by
Property International Limited, P. O. Box 45548, 8th Floor Mariam Tower, Songea Road, Shaurimoyo Road, Dar Es salaam, Tanzania Tel: +255 684 633 333 info@propertyinternationalltd.com www.propertyinternationalltd.com Copyright © 2015, © All rights reserved
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The ultimate in luxury and Style
PIM. Issue no.13, Dec 2015 Upfront
News & Views
Tanzania To Be Next Natural Gas Hub And Exporter In Africa, Says TPDC The announcement took place at Kilimanjaro International Airport (KIA)during the launch of the Airborne Gravity Gradiometry Surveys (AGGS) for the Lake Tanganyika North Block, where the TPDC Managing Director, Dr. James Mataragio, explained that the current Tanzanian gas fields are reaching a production capacity of 260 million cubic feet per day (cf/d) while the country’s needs yield to 140 million cf/d. The surplus estimation comes from mainly two sources, the Songo-Songo gas field whose production capacity is over the 150 million cf/d while the country can only consume 93 million cf/d and the Mnazi bay, whose delivery capacity can reach the 110 million cf/d while Tanzania can only use 47 million cf/d at the moment, explained Dr. Mataragio. According to the Wall Street Journal (WSJ), Tanzania is currently planning to tap this surplus by building a gas export plant aiming at supplying the needs of the Asian markets after the local needs are covered and the electricity sector has become non-dependent of oil imports and unreliable hydropower plants. At the current state, Tanzania can assure the generation of 500 MW of electricity but once the required gas power generators are completed the country’s electricity sector will run on its own, Dr. Mataragio added. This will help the country to save up to USD 1 billion a year on oil imports for electricity generation according to the WSJ.
Government action on inefficiency at the Tanzania Revenue Authority (TRA) following the discovery of “missing” containers. PRESIDENT John Magufuli has suspended Tanzania Revenue Authority (TRA) Commissioner General Rished Bade and immediately appointed Dr Phillip Mpango to act. The suspension follows Prime Minister, Mr Majaliwa Kassim Majaliwa, impromptu tour at Tanzania Port Authority (TPA), where he was welcomed by poor management that hinders the nation to get billion of shilling in revenues. The PM found out some 350 containers were missing from TRA’s tax ledger but appeared on TPA books. The cost of the revenue was approximated at 80bn/-. Also the PM suspended a number of TRA department chief on the same. Dr Mpango, an economist, was the head of planning commission.
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Tanzania recently raised its natural gas reserves from 46.5 trillion cubic feet in June, 2014 to 55 trillion cubic feet in June, 2015 due to a series of discoveries in offshore blocks. However, the country has a potential natural gas reserves up to 441 trillion cubic feet solely in the coastal region, according to the US Geological Survey. Source: tanzaniainvest.com
Office Rents Stabilizing in Dubai’s Fragmented Market According to Cluttons, the first quarter of 2015 has seen office rents stabilize across Dubai’s prime and secondary markets, following a slowdown in the rate of rent increases during Q4 2014, while the industrial market has retained its momentum. Cluttons’ Spring 2015 Dubai Commercial Property Outlook report shows that Grade A office rents grew by 14% in 2014, while secondary space saw a more substantial 24% uplift last year. This strong growth has largely failed to carry through to this year, with a widespread stabilization in rents, despite a steady stream of requirements from corporate occupiers. In the secondary
market, rents have been affected by the abundance of stock, which continues to trickle through in locations such as Jumeirah Lake Towers and Business Bay. While demand for Grade A space remains diverse and strong, mirroring the growth across the various business segments of the economy, average rents have stabilized.
Africa to Attract Significant Foreign Real Estate investment The largest cities of Sub-Saharan Africa are growing at a rapid pace; Luanda’s population is forecast to increase by more than 70% during the 2010-2025 period, while Dar es Salaam, Kampala and Lusaka are expected to double. Allied to strong economic growth, this is creating increased demand for good quality real estate of all types. The retail sector has seen a huge increase in activity as a result of the rise of the urban middle class and the expansion of South African retailers such as Shop-rite and Pick n Pay into the rest of Africa. Modern shopping malls are a relatively new concept in much of Africa, but a spate of new malls has been developed in key cities such as Accra and Nairobi.
Research pegs Ethiopia as most affordable location to buy luxury property A recent study reviewed that Ethiopia is the most affordable location to buy luxury real estate in the emerging markets. Purchasing luxury real estate in Ethiopia costs an average of 396.58 EUR per square meter, according to a new ranking from online property portal Lamudi. At the other end of the scale, luxury property for sale in Angola is priced at 3965.52 EUR per square meter on average, the report showed. “As Ethiopia’s property market matures, high-end real estate is increasingly in demand. At the same time, prices here remain low comparative to many of our neighbours, making Ethiopia the most affordable place to buy luxury real estate anywhere in the world." said Wunmi Osholake, MD of Lamudi Ethiopia.
Kenya Property Developer goes public. Home Afrika Ltd. became the first publically traded developer, listing 405.3 million shares on the Nairobi Stock Exchange. Home Afrika plans to build one million homes in the next 10 years across Africa, including in Tanzania, Uganda, South Sudan, Ethiopia and Rwanda. Bloomberg reports. The company has formed a partnership with Shelter Afrique, an intergovernmental housing agency. The initial offering was priced as 12 Kenyan shillings a share and more than doubled in its July 15 debut to 25 Kenyan shillings, before slipping back to 22.5 shillings. The company may issue more shares next year, chief executive officer Gerald Chege told the wire service. The current share price values the company at 9.1 billion shillings ($105 million), Bloomberg estimates. Home Afrika is also planning to create REITs to help fund its expansion. Kenya approved the formation of REITs last month.
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HAYAT RESIDENCE “The jewel of kigamboni” Hayat Residence a haven of peace, strategically located in Kigamboni, at the heart of explosive development projects. Exquisite plots for sale for both development projects and residential houses. Development scope of multi-million dollars projects (Mosque, Hospital, Education centre and Hotel) with an aggressive competition of investors and developers wanting the shopping mall site and H.E sites. Express your interests before we shut this beautiful window of opportunity. All primary services are available on site i.e. Electricity, water and infrastructures.
FEW PLOTS REMAINING
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FOR ENQUIRIES PLEASE CONTACT US
0684 633 333 / 0688 888898 P. O. Box 45548 | 8th Floor Mariam Tower, Songea Road / ShauriMoyo Road Dar es Salaam, Tanzania, Email: info@propertyinternationalltd.com,
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PIM. Issue no.13, Dec 2015 Feature
Editors Pick Cape Town
Some Top 8 most luxurious property designs in the world The most well-designed, well-built and luxurious building will not reflect the time, money and effort spent on it if the finishes are not up to standard
Sometimes, you don’t even realize what it is about a particular building that attracts you from the minute you see it, or step inside. Discerning people know that it’s the little things that matter. In building terms, it’s the detail: the small features that make immediate impact. From the finishing materials such as the floors, walls and ceilings, to elements like the tiles, sanitary ware, and paint colors – these little touches are, essentially what determine a building’s appeal. Some beautiful buildings that catches our editor attention include the following. Australia
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By Emelda Mwamanga
Nairobi
Nairobi
Cape Town
Nairobi
China
South Africa 13 
PIM. Issue no.13, Dec 2015 Feature
Christmas
I
t is the season to be jolly. Christmas is the time of year where everything looks more spectacular and glamorous. It is the biggest and most celebrated holiday season. The one time where you get a feel of how people of different cultures and backgrounds come together to celebrate. I remember growing up as a young girl I was always so smitten by how beautiful the malls, restaurants and streets are adorned with bright lights. It always gave me the sense of Christmas cheer and excitement. Many countries especially abroad are always keen to decorate their cities to bring that Christmas fever to the citizens and also it brings such hype to businesses far and wide. From illuminated boat parades to spectacular extravaganzas, towns and cities around the world each have a distinctive way of celebrating the holiday season. Though New York and Paris lad the pack with iconic holiday decorations, the cities of Madrid, Melbourne and six other destinations around the world are arguably just as festive and vibrant.
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By Gloria Korosso
In New York- with street vendors selling roasted chestnuts and midtowns multitude of ice skating ranks, it’s nearly impossible to consider the holidays without thinking of New York. Festivities officially kick off with Rockefeller centres annual Christmas tree lighting sometimes during the last weeks of November to first of December. In Paris, France city of lights indeed especially during the holidays. From the Arc de Triumphed to the Palace de la Concorde, the Champs Elyse’s is brought to life each evening with hundreds of fairy lights sparkling from the avenues trees. The decorations in the city inspire the people to decorate their homes and adorn them from offices to malls, restaurants to shops to street vendors selling Christmas cards and ornaments, these are all the ways that show us... the city being decorated is and cannot be one persons effort but is the effort of the entire community and the government.
Royal Palm Estate is PIL project consisting of 99 developed plots most of which are residential, a few commercial and two housing estates. It is situated by the main road to Mwasonga some 21 kilometers from Kigamboni Ferry and Stands face-to-face with the Dar-es-Salaam Zoo. Adjacecement to the Royal Palm Estates is the Dar-Fresh company famous for its cool and sweet diary products. Other attractions include the conspicuous SIX-BRIDGE being built that will link Dar-es-Salaam central business district and the proposed Kigamboni city.
FOR ENQUIRIES PLEASE CALL +255 684 633 333
PIM. Issue no.13, Dec 2015 Feature
?
Investor Profile
By Dominic Mwakifulefule
The Hallmarks of a true Property Investor in 2016.
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The Magufuli era has ushered some seriousness in public sector delivery. This is very much welcomed by the whole lot of us, especially those who have for a long time been at the mercies of incompetent public officers. In the real estate industry, an incompetent government official can literally be the only thing standing in the way of a multi-million dollar deal.
unfortunately this kind of thing is common place in Tanzania. What jumped out to us at Property International during the state of the nation address was the president’s commitment to keep a close eye on the kind of investors that bring their money to Tanzania. As the year draws to end, we discuss the attributes of properties that should be allowed in the country.
A classic example would be the land board officials that showed up three hours late for a land dispute claim. The sheer lack of commitment to duty is an embarrassment to the country but
To begin with they should employ Tanzanians. We are not implying that their organizations should be made up entirely of locals, however a quota system should be company policy.
The lax attitude that some well-known companies have towards this is nothing short of damning. It’s good and well to have distinguished real estate agents imported to Tanzania to help improve sales and expertise, but it’s also a well-known fact that for an economy to transition, there needs to be skills and technological exchange between the local populace and the skilled employees. Community property developments would also be a welcomed investment. South Africa, has in only 21 years, through the Rural Development Program (RDP) built more houses for its people than any other government in the world. Most of these community developments, like the RDP initiative should be for low cost housing because the truth of the matter is, that is what a bulk of the population can afford. Investors coming into Tanzania especially, should not just be interested in up market, high value property developments but also the reach the lowly in society. It would be interesting to see how banks in Tanzania could move towards financing these projects to the even first time home buyers may have manageable mortgages and fitting accommodation for small families. This is a niche that is yet to be explored in Tanzania.
Lastly, the government needs to strengthen its position in the national housing strategy. The National Housing Cooperation (NHC) has in the last few years demonstrated a shift in approach to property development. There are some ambitious projects that are in the pipeline and as is the fashion, they provide housing at rates that the ordinary citizen can afford. It would also be pleasing to see a gear towards more developments in rural areas and popular towns around the country so as to change the face of the environment. Better housing in rural areas and towns is the key to decentralization. The rate of urbanization is alarming to say the least and a lot of that has to do with the fact that rural areas lose their appeal quickly if any. Providing quality housing in rural areas should make it to the priority list of the NHC in 2016.
Diligence and honesty are traits that you would think would come naturally for an investor, but there are some property moguls that have mastered the art of deception. Land scams abound in Tanzania and it’s unfortunate to say that even registered companies have been known to set up make shift shelters and leave permanently with people’s hard earned money. Some would say, the sheep in a wolf skin approach that some “investors” take is purely a legislative problem but if we screening processes need to be upped. In some cases, companies purport to have international portfolios and a simple search on the internet could deduce this as false but it goes back to the fact that land board officers need to do their job properly. However, it cannot be overstated that only honest investors should be allowed in. Local property investors would be the most ideal trend that Property International would like to see emerge. Buying property and maintaining is quite expensive and that explains why there are more foreign investors trading in property at a large commercial scale than locals but this can be changed if more local companies merge or work together. They will bank the money in Tanzania and keep the money circulating in the country. Local property investors are more likely to develop for the general value of the communities they build in because there is more ownership of the country. This is not to suggest that local investors build purely out of passion and love but for the simple reason that that is a factor definitely helps the quality of the task.
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PIM. Issue no.13, Dec 2015 Upfront
Technology
Tanzania’s president commissions Chinesebacked natural gas pipeline tus by 2025”. Akshai Fofaria of Pinsent Masons, the law firm behind Out-Law.com, said: “As demand and living standards rise, infrastructure and energy requirements must follow; valuable opportunities for local contractors will also accompany this project.” Xinhua said the pipeline construction project was started in June 2013 by the China Petroleum Technology and Development Corporation (CPTDC), a subsidiary of the China National Petroleum Company, Xinhua said. Construction involved laying a pipeline from Mnazi Bay in Mtwara to Kinyerezi via Somanga Fungu, where there was an existing spur line from the Songo gas field in the southern Lindi region, Xinhua said. The CPTDC has also built a natural gas processing plant in the Mtwara region. Tanzania has an increasing need to boost domestic electricity production. Tanzania’s high commissioner to Zambia Grace Mujuma was reported as saying recently that, because of unexpectedly low levels of water in the country’s reservoirs, several hydro-power plants had been taken out of service.
A Chinese-backed pipeline connecting offshore natural gas fields to Tanzania’s commercial capital Dar es Salaam has been formally commissioned by the country’s president.15 Oct 2015 The 535-kilometre pipeline, built with a $1.25 billion concessional loan from the Export-Import (Exim) Bank of China, was commissioned by Jakaya Kikwete on 10 October, China’s state Xinhua News Agency said. The director-general of the Tanzania Petroleum Development Corporation, James Mataragio, told Xinhua that the pipeline has the capacity to transport 210 cubic feet of natural gas a day from Msimbati, in Tanzania’s southern region of Mtwara, to Kinyerezi in Dar es Salaam. Mataragio said natural gas “will act as an economic catalyst for the country, which aims to attain the middle income sta-
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Mujuma said there was a possibility that operations might be suspended at all hydro-power plants in Tanzania if water levels continued to fall. However, she said “natural gas will help in cushioning the unprecedented electricity shortage” in the country. China is a key long-term investor in Tanzania. In October 2014, Tanzania announced the signing of investment deals with China worth more than $1.7bn, including plans to build a ‘satellite city’ to ease congestion in Dar es Salaam and $85m in grants and zero-interest loans from China for unspecified projects. According to figures from the China Business Network, China’s total direct investment in Tanzania soared from $700m in 2011 to $2.1bn in 2012, with investments focused on railways, ports, buildings, road construction, gas pipelines and wind power farms.
VIKURUTI HILLS-KIBAHA VIWANJA VYA MAKAZI NA BIASHARA LIPIA VINAPATIKANA
YA THAMANI YA KIWANJA 15
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UPATE KIWANJA
CEMETARY
PB NS
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HOUSING ESTATE
10 RELIGIOUS SITE 20 HOTEL SITE
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PB
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30
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15 20 15
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10 RELIGIOUS SITE
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PETTY TRADING
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COMMUNITY HALL
NUNUA SASA MARKET
PARKING
PB
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SHOPPING MALL
DISPENSARY
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HOUSING ESTATE
15 15 20
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10 15 OS HOTEL SITE
CHILDREN PLAY ROUND HOUSING ESTATE CEMETERY
PB
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PROPOSED SECONDARY SCHOOL 15
Tsh: 6,000 kwa mita ya mraba
Viwanja vilivyopimwa vinapatikana Mlandizi (kibaha). Vipo umbali wa km50 kutoka Dar es salaam km6.5 kutoka barabara kubwa ya Morogoro. Vina barabara zilizochongwa, maji na umeme .
“ WAHI SASA, VIWANJA NI VIZURI NA UTAWEZA KUPATA MKOPO USIO NA RIBA”
0684 633 333 / 0784 099 007 PROPERTY INTERNATIONAL LTD
P. O. Box 45548 | 8th Floor Mariam Tower, Songea Rd / ShauriMoyo Rd Dar es Salaam, Tanzania, E mail:info@propertyinternationalltd.com,www.propertyinternationalltd.com
DREAM TO REALITY
*Vigezo na masharti kuzingatiwa
PIM. Issue no.13, Dec 2015 Upfront
Our Architect
Property International Introduces Office Space Planning Services
By Architect: Ifigenia Salazar Anselmi
Need to design or redesign your office space to suit your needs? Property international now offers a wide range of office design solutions. The company now boasts of expertise to provide high quality office design, interior design, and design consultancy to meet the growing demand of office space planning services in Tanzania.
The 4 critical reasons why many clients need office space planning services include: 1. The need for efficient and effective use of space 2. The need to accommodate special processes and work flows within the offices 3. To create a desired image and atmosphere in the office 4. A change in organizational philosophy. In corporate environment, it is now emerging that many organizations are now moving away from hierarchical structures toward a more team-based approach that favours more collaborative workspace to replace executive officers and cubicles. Our design consultant team have a systematic regulated approach to design by working collaboratively with you to present your ideas with a view to establish design solutions to satisfy all the integrated requirements.
Free Space Planning Checklist • •
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Property International is proudly introducing office space planning services to include:
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Interior design Office space concept design Office space plans/drawings Office space colour selections Internal Fitout
At Property International, we are fully aware that office space planning assignment responsibilities include: space analysis; space planning; project costing; and project management.
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“When you engage Property International for your office design solution, we conduct detailed study of your organization, departmental structure, procedures, systems and projected organizational growth which enable us to design and engineer your new office to meet and exceed your exceptions.” - PIL office Designer.
Consider the size of your space based on your current needs and your projections for growth. Analyse the traffic flow of your office, placing individuals who meet with clients frequently in an easily accessible location. Place workers in near proximity who frequently collaborate on projects Review office machinery (copier, fax, printers, etc.) and place equipment near the employees who use it most. When using systems furniture, lay out your plan carefully making sure to include any columns, bump-outs or irregularities in the space. Always measure carefully and include the sizes of office furniture and system panels in your calculations to avoid narrow and cramped walkways and work spaces. Plan the cabling and wiring for your telecommunications and electronic equipment. Make sure each work space is adequately equipped and no cables will be running down or across the aisles. Be sure to plan for adequate storage and equipment areas to avoid clutter and safety hazards.
If you need assistance with any of these issues, contact Property International at: +255 684 633 333 or e-mail info@propertyinternationalltd.com
PIM. Issue no.13, Dec 2015 Feature
Cover Story
By Emelda Mwamanga
PIL talks to Nehemiah Kyando Mchechu, Director General of the National Housing Corporation (NHC), on success, satellite cities, and private investor opportunities. BIOGRAPHY Nehemiah Kyando Mchechu was formerly MD & CEO of Commercial Bank of Africa Tanzania Limited, where at that time he was the youngest CEO within the banking sector in East Africa. Prior to CBA, he worked for Standard Chartered Bank Tanzania Ltd., and in his last role was an Alternate Director and Head of Global and Co-Head of Wholesale Banking. He has worked for Citibank and Barclays Bank Tanzania Ltd. Mchechu sits on several Boards including KCB Tanzania Limited, and is the Chairman of the Right way Schools Board of Directors. He is also a Director and Founding member of the CEO Roundtable, a policy dialogue forum that brings together the top 50 CEOs in Tanzania.
Q&A
Q
Q1. NHC was established by the Government of Tanzania to undertake the construction of housing throughout the country. You came to lead this institution in 2010. What has been achieved so far and what is NHC’s current development strategy?
The Government entrusted me with the responsibility of heading the NHC in 2010. I was mandated to restructure this institution, get it back on track, restore its operational efficiency and instil the private sector culture in its delivery systems. Five years later, we are proud that NHC boasts of a balance sheet of around USD 2 billion. This balance sheet places the Corporation among the largest real estate developers in East Africa. The Corporation is also one of the largest real estate companies in the Sub-Saharan Africa in terms of property base. It owns nearly 20,000 housing and commercial rental units located in almost all of the major urban areas of Tanzania Mainland. My first duty in office was to determine NHC’s new strategic direction. In this respect, we managed to evolve the strategic plan for the 2010/2011- 2014/2015 period. This strategy revolved around six key goals, which we have decided to retain as pillars for the Corporation’s course for the coming 10 years i.e. during the 2015/16-2024/25 period. Under the first goal, we aim at turning around NHC into a main real estate developer in Africa. The second goal is focused on making NHC a leading real estate management firm. The third goal is aimed at improving the corporate operational efficiency. The fourth goal is people/employees centred in terms of developing both their competencies and well being. The fifth goal is directed towards creating a conducive legal environment for smooth corporate operations. Under the sixth goal, we nurture our brand for both our products and services. The first three goals I have mentioned are particularly important for us. First, bearing in mind the mandate of alleviating housing poverty in the country
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that was bestowed upon NHC immediately after independence in 1962 and our current balance sheet muscle, we are dutiful to meet both the Government and public expectations of effectively responding to the housing demand and thereby reducing the housing shortage. It is through this noble responsibility that we have assumed a lead role in the growth of the real estate sector in the country. In the context of the foregoing role, we want to become the leading and mostly preferred real estate developer. We are aiming at delivering more units in the real estate market place of Tanzania Against this backdrop; we are aiming at delivering more units in the real estate market place of Tanzania. The said units include, residential houses, shopping malls, offices, and retail shops.
Q2. What is the secret of success for the NHC? If you were to look on the overall success of the NHC, first and foremost is the demand of housing in Tanzania. Tanzania suffers from a terrible shortage of good quality and affordable housing. Tanzania has a housing deficit of around 3 million units, which is growing at the rate of about 200,000 units per annum. NHC is mandated with the role of providing housing and other buildings including shop and office spaces to general public. We are optimistic that we will be able to deliver not less than 1,500 units per annum for the coming 10 years.
Q4. Heritage stakeholders are claiming that by demolishing old houses in the city, we are loosing the national identity of our country. What is your take on this? My answer will be Yes and No. There are only few houses that we have demolished in the city. But let me start by asking; what is the Identity of Dar Es Salaam? What history are we looking for tourism? Tell me if there’s any five buildings or just one old building listed as a heritage property in the city? Most old buildings were built with poor infrastructures to sustain the economic or businesses expansion; they have always been old houses in isolation. We NHC are big supporters of history. We have several old houses belong to NHC. While we are looking on the heritage, we must consider the economic factor of these building, how will they be able to sustain themselves in long run? How will they compensate the owners? What about the infrastructures supporting them? There are several factors we must consider first.
Q&A The supply of houses has been very low and the banks give house loans with high interests and taxes, therefore these have increased the demand of houses and we have been keen to provide better houses for Tanzanians. There is also an increased number of the middle class in Tanzania, and that is another reason there is an increase of demand of houses in general. But also our success is a result of the dedicated staff of NHC, that have committed to our strategic plans and the long and short term goals.
Q3. How would you assess the recent performance of the National Housing Corporation (NHC)?
The performance of the NHC has continued to improve, and I think we have maintained the slot and are still doing well. The NHC has invested more in the execution of our strategic plan, focusing on six key elements. We aim to become a leading real estate developer, to become an efficient real estate manager, and to strengthen operational efficiency and control mechanisms. We have also put more emphasis on brand issues, and have maintained strong relationships with our tenants and potential customers. We are now completing a customer satisfaction survey to find out if our clients are happy with the services we provide. In addition, we are carrying out a staff satisfaction survey to get feedback from our employees to see which practices are working and which are not.
Q5. What are you doing on the financing side to promote access to housing to Tanzanians? To which extent are financial institutions operating in Tanzania lending to individual to buy houses?
Unfortunately and for long, in Tanzania banks have been shy on offering mortgage loans. However, with the enactment of the Mortgage Law in 2008 and the establishment of the Tanzania Mortgage Refinancing Company (TMRC) in 2010, banks have started to be forthcoming with mortgage lending. Public awareness on mortgage has also helped to increase the number of clients seeking for mortgage loans. Nevertheless, mortgage business though fast growing, is still nascent. For example, by the end of 2014, the ratio of outstanding mortgage debt to Gross Domestic Product (GDP) stood at 0.46%. The present mortgage market dynamics have motivated NHC into signing memorandum of understandings (MoUs) with 16 local banks for the purpose of providing mortgage loans to buyers of its properties The present mortgage market dynamics have motivated NHC into signing memorandum of understandings (MoUs) with 16 local banks for the purpose of providing mortgage loans to buyers of its properties. Under these MoUs, our property buyers are guaranteed favorable terms and conditions that include relatively lower interest rates. The fact that NHC is committed on repurchasing properties of defaulting buyers, affords mortgage banks an extra comfort to ease lending terms. Besides the foregoing initiative, we also devote time to understand the buyers’ banking requirements. We have thus opened a banks’ window at NHC which is dedicated to enlightening clients on banking and mortgage issues We have thus opened a banks’ window at NHC which is dedicated to enlightening clients on banking and mortgage issues.
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PIM. Issue no.13, Dec 2015 Feature
Cover Story
Q6. What were the main strategies behind the NHC’s decision to commit to its satellite city projects? NHC has three different business portfolios. One of them is to improve the existing cities, so we are trying to combine local properties situated in strategic areas to create something meaningful that will remain for another 40 to 50 years. The second portfolio deals with affordable housing, and our aim is to deliver affordable and good quality housing for local groups in all regions of Tanzania. Affordable housing should be the focus of the local authorities, too. The third portfolio, satellite cities, is also important for us. Within this portfolio, the NHC acts as a master developer. We will welcome developers in some of the satellite projects. As a master developer, we have to ensure that the master plan is delivered correctly. We are responsible for providing infrastructure to those who are participating in the projects. We have a total of nine satellite cities and four of them are concluded. Two of those are in Dar es Salaam, and we have two separate satellite cities in Arusha. One is Safari city and the other is at Usa River. They are not competing but rather complementing each other. We aim to create a community in those satellite areas where people can live, shop, have offices, and use recreational areas. Every project has a key feature; some of them have more office areas, business, and commercial facilities with residential areas to support them or vice versa. In some of the areas, we are targeting all classes of potential residency. Mwanza is another region to keep an eye on. It is the largest city in the north-west of the country. We are also looking at opportunities for establishing satellite cities in Mbeya and Dodoma. Most of these projects take 5 to 10 years to complete.
Q7. Is there a specific profile of investors you are looking at? Yes, for foreign investors we have a capital threshold of USD 30 million. Apart from capital, we also seek for skills, experience and other resources However, we are also open on this angle. Apart from capital, we also seek for skills, experience and other resources that can be exploited in our business undertakings and partnerships for mutual benefit. We really want to make use of the experiences of our partners. In this endeavour, we do not sit on the sidelines but we take an active role to learn new technical issues from these partners.
Q8. How does NHC finance these projects? The financing differs across projects. We have enough sources for some of the projects, and we are also borrowing for some others. We intend to do to encourage more developers to participate. One of our options is to sell plots of land to investors.
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Q9. There are new properties that you are launching today. What are they about.? Next project online are Kawe flats, called 7 Eleven. We are building a satellite city around Kawe, this is the first phase of project in Kawe, started in January 2015 and expected to finish by December 2018. By the time we complete the Kawe projects, the city will be equivalent to Sandston city in South Africa. It will be pure commercial CBD. We are working on supportive infrastructures to support this satellite city. Hopefully we will reduce a lot of traffic to the city center. We have started to sale some houses in Kawe. We are looking forward for many Tanzanians to own properties here.
Q10. How do you see Tanzania few years form now? What would be your piece of advise to investors looking at Tanzania? I foresee a very, very bright future for this country. Now we have a new Government that is committed to preserving the political stability and conducive investment environment that have prevailed all along. I firmly believe that, today’s political constituency will set a new platform for what the country is hitherto to be. I am wishing that there will be more big investments flowing in apart from those going to the natural gas industry. I mean, not just investments related natural resources like gas or minerals. There are many other investment opportunities, which have bigger positive socio-economic impact as well as the well being of our citizenry. The real estate industry in Tanzanian has the potential of generating USD 2 billion each year. This is more than 6% of the country’s GDP The real estate industry in Tanzanian has the potential of generating USD 2 billion each year. This is more than 6% of the country’s GDP. As you may be aware, this industry has the greatest multiplier effect on other economic sectors. It impacts on almost all industries. Besides, it employs professional and non-professional skills, that is, be it the educated or the non-educated labour force. NHC has about USD 400 million worth of ongoing projects in real estate. In my opinion, this will reach USD 800 million during the coming five years Presently, Finally, I am strongly convinced that Tanzania is one of the most attractive countries to invest in.
Q11.What are your main goals for 2016? Our goal is to achieve every goal that we have set in the strategic plan for 2010-2015. We have already reached some of them, but it will also be the time for us to design a new strategic plan that should consider our achievements, financial situation, and human capital. One of the goals in the coming strategic plan is to make sure to have enough units in every area. We will also need to improve our financial positions for finding alternative sources of raising money and selling more of our properties. We need to work on leadership and human capital issues, and will need to make sure we are able to sustain our success.
PIM. Issue no.13, Dec 2015 Feature
Christmas Economic
By Dominic Mwakifulefule
How Disasters and Other Opportunities Affect our Property Markets
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f you live in Dar es Salaam, then you must be well accustomed to the rains that grace our city from March to May each year. These are recurrent rains that flood the city and are indiscriminate in relation to their reach as the rich and poor are affected. When an investor visits Dar as Salaam in the month of August when the weather is hot and then falls in love with the city and is considering to buy property, its important to know about these two months of continuous rain and how it would affect their property. More importantly, they should know how the value is affected in case they want to sell. Conventionally, this is an issue that has been widely written about but we wanted to get a local dimension to it so we investigated the matter. I asked a very simple question, how does a recurrent natural disaster like flooding affect property prices in Dar es Salaam? Due to the fact that flooding is well documented each year in the print and digital media, the areas affected usually get a bad reputation as result. Sales will most likely than not drop after such a disaster because no one is looking to live area prone to flooding. The market perceives risk in investing in such areas as opposed to non-affected ones. Despite the fact that generally small areas may be affected by the flooding, there is strong evidence from research done by the European Real Estate Society in 2013 that sales for a whole suburb are usually affected.
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PIM. Issue no.13, Dec 2015
Currency and Economic Fluctuations There is more to currency exchange rates affecting property than meets the eye. So many currencies mean an almost eternal number of considerations. A high US dollar has been known to send property prices sky high because the shilling is on the losing side and vice versa but is it really that simple to understand? To be honest it is. The painful truth that a strong dollar will make a property a worth a lot of money is a mathematical fact that is much to the delight of investor who own property. Inversely, those possessing a strong dollar need less of it to buy property in shillings so it’s more a notion position. In the proverbial fashion of developing economies, the downs mean less foreign investment which is characterized by low property prices. Houses are cheaper to rent and business spaces the same because investors fear unstable economies. This is the rule and not the exception so economies are in many ways the yard stick for general property prices.
Going back to 2008 with the recession which brought even high value properties to ordinary if not steal prices, is a clear indication that unhealthy economies spell disaster for the real estate market. It goes without mention that recessions are usually followed by austerity and with that can come a final nail to an already suffering industry as is the case in Greece. According to the bank of Greece, house prices fell at a steep level from 2012 through 2014 with Athens falling by 6.65% in the 3rd quarter of 2014 and Thessaloniki by 6.89% in the same time. This is quite significant seeing that to try to help solve the problem, the government gave residence to large property investors as incentives to revive the industry. For investors with the money at such hard times, this is the best time to buy and some businessman like Robert Kiyosaki have made a career from buying in hard times so sometimes thinking out of the box in the key to survival I hard times.
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BOKOTIMIZA KIBAHA Viwanja vya Makazi na Biashara
- Viwanja vilivyopimwa vinapatikan Tumbi (Kibaha). - Vyenye maji, umeme na barabara zimechongwa. - Vipo umbali wa kilomita 6.5 toka barabara kubwa ya Morogoro, - 30km kutoka Dar es salaam 4km kutoka Hosipitali ya Tumbi.
Tsh. 12,000
kwa mita ya mraba LIPIA 20% YA THAMANI YA KIWANJA “ WAHI SASA, VIWANJA NI VIZURI NA UTAWEZA KUPATA MKOPO USIO NA RIBA”
0684 633 333 / 0655 323 909 P. O. Box 45548 | 8th Floor Mariam Tower, Songea Road / ShauriMoyo Road Dar es Salaam, Tanzania E mail: info@propertyinternationalltd.com
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NUNUA SASA
PIM. Issue no.13, Dec 2015 Feature
Insurance
To Insure or not to Insure?
By Dominic Mwakifulefule
Home insurance is a topic that admittedly not too many Tanzanians know much about. Unlike car insurance which is mandated by law, home insurance is entirely to the volition of the home owner. Many see it as a cost worth paying because after all, the likelihood of being involved in a car accident is higher than a house being destroyed property deal going wrong. So the natural question is-
why should I get home insurance? Well there are two ways to answer that question. Firstly, do you know enough about this nature of insurance and why it’s beneficial to all home owners? Before jumping onto the band wagon because it sounds fancy, know what type of home insurance you need. Whether it’s insurance against natural disasters, accidental damage to property, whether home items are included, how long it takes to claim after any damage. Not all home insurance packages are created equal. Some banks offer home insurance in Tanzania and of course insurance companies but it’s worth mentioning that, just like car insurance, a personalized quote is necessary because what Peter pays for his house in Mikocheni B is not what Mary will pay in the same neighbourhood. Most home insurance packages have an excess that is payable by the customer so knowing your load to is something to be especially careful of because it is entirely dependent on the excess package selected. Different companies have unique excess packages and it’s up to you to select which is best for you. Some mortgages do not allow home insurance until after the house is legally yours so as a first time home owner, this is something to keep a look out for in the fine print.
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Secondly, are you in a disaster prone area? The true value
of home insurance is not that you have a policy lying around somewhere, but that you can use it when that rainy day comes showering down. In our case in Tanzania, places like Sinza, Dar es Salaam have a terrible drainage system when the rainy season comes. Property owners there are forced to grapple with the perennial cost of cleaning up and renovating their houses.
It would be practical to have a home insurance plan that would protect you against such occurrences. The proof is in the pudding and case in point again is Australia which experiences veld vires annually and this has necessitated that over 70% of home owners are insured against such disasters. So the word to take home is, if you think you are going to need it, then go for it. It’s not a poetic question, is a practical one. Home insurance is in many ways a life saver and that is why the more progressive countries advertise is so rigorously but let’s for a moment resort to a moment of honesty. Tanzanian home owners are not there yet and it’s not a question of affordability but rather mentality. There is an African saying that “Once you have got a house, you have got a fortress”. Africans believe that a house is an invincible investment but like everything else, a house is a finite investment and some day, when you are least expecting you may think back to this article and say “I should have got it”. It’s not a foreboding prediction but just a reminder that the walls we build in our minds towards certain things should be brought down. I spoke to some property owners who informed the assertion that the real problem that home owners, even those who are prone to disasters is their reluctance towards such policies. Different schools of thought are emerging from especially new home owners who are more informed and have less of an inclination to believe that they can do it themselves when things go wrong. The future of home insurance in that sense is quite an optimistic one.
Here are five Companies that offer Home Insurance in Tanzania. • • • • •
Aris Insurance Real Insurance African life Insurance Stanbic Bank Insurance group of Tanzania
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For any additional information or assistance, Please contact us on +255 684 633 333 Email: info@propertyinternationalltd.com
PIM. Issue no.13, Dec 2015
Legal Help Desk
Feature
Definition of the term contract By Fatma Mungia
At Property International, we care about your know how. There is nothing worse than having your ignorance taken advantage of by the wrong people. Most scammers and confidence men usually just assume knowledge by saying a big word here and a big word there and we usually fall hook line and sinker for their intelligent sounding words. Our legal help desk will sift through the mumbo jumbo and give it to your straight from a legal standpoint. In this three part series on land contract, we start first by defining what a contract is in general terms. A Contract is a legally binding agreement creating enforceable obligation. According to Sir William Salmond, a contract is an agreement creating and defining the obligation between two or more parties. An agreement does not necessarily mean a contract as the former does not invite legal enforcement while the latter calls for the legal measures and the parties intend enforcement of the law for the their entered agreement. In English law contract is a bargain, each party gives something to the other and gets something in return under mutual promise, therefore the contract should be carried out, under obligation theory a party is obliged to carry out promise. ESSENTIAL ELEMENTS OF CONTRACTS However for a contract to be valid, it must contain the following essential elements. Namely; there must be a(a) Consideration,(b) parties must have a capacity to contract,(c) parties must have free will (consent) to contract, (d)parties must have intended to create a legal relationship, and (d) a words must be certain.
In all circumstances, a valid contract requires an offer from one part and unconditional acceptance by the other party and the acceptance should be communicated to the one who made the offer .The contracting parties should agree about the subject matter at the same time and in the same sense. CLASSIFICATION OF CONTRACTS Contracts can be by deeds, simple, bilateral and unilateral. Initially the deeds contract used to be called as the contract under seal. Thus writing, signature and witness are the essential characteristics of this type of contract.
1) Simple Contract
A simple contract can be whether oral or in writing. But the point is should not be under seal or recorded. Sometimes a simple contract may be made also partly oral and partly in writing.
2) Bilateral Contract
As its name implies, is a contract between two parties whereby one party promises to buy and the other party agrees to sell. Under the law of contract provided an example on that when one purchases of a motor car from an authorized dealer, in law it is the seller that is the legally obliged entity to offer a guarantee and not the manufacture.
3) Unilateral Contract
A unilateral contract is that only one party makes a promise. It is a rare type of contract which arises, for example, where there is an offer of a reward. However, when one as an A offers a reward to anyone who will recover his lost property, no one is bound to recover the lost property but A himself is bound to give the promised reward to anyone who responded to an offer and who might recover the property. For information contact: info@dkmlegal.co.tz
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LIPIA 20% YA THAMANI YA KIWANJA
ARDHI NI MTAJI, MILIKI ARDHI LEO UTIMIZE MALENGO YAKO Mradi wa african palm upo km 27 kutoka ferry na km 12 kutoka katika daraja jipya la Kigamboni ni viwanja vilivyopimwa vyenye hati miliki. Eneo lipo katika mandhari ya kifahari na mvuto wa kipekee lenye maji, umeme na barabara. Viwanja vinapatikana kwa mkopo. Unahitaji kulipia asilimia 20 tu (20%), usipitwe na nafasi hii ya kipekee.
0684 633 333 / 0717 143 753
PROPERTY INTERNATIONAL LTD DREAM TO REALITY
P. O. Box 45548 | 8th Floor Mariam Tower, Songea Rd / ShauriMoyo Rd Dar es Salaam, Tanzania E mail:info@propertyinternationalltd.com, *Vigezo na masharti kuzingatiwa
www.propertyinternationalltd.com
NUNUA SASA
Residential Plots Commercial Residential Plots Sold
Tsh. 20,000/= kwa mita ya mraba
PIM. Issue no.13, Dec 2015 Feature
Amana Bank
Banking with Q1. You have recently celebrated your 4th birthday. Tell us what your immediate plans for 2016 are? Well, firstly I would like to start off by saying, we are here for our customers, their support and loyalty to Amana Bank is what has kept us competitive in our markets. I’m obligated to first thank our customers for their continued support. Our top priority for next year will be to increase our reach by opening new branches; we have one already opening late this month in Mbagala, Zakhem. In the first quarter of 2016, we will open another branch on Uhuru road in Dar es Salaam. Increasing the number of products and services is a must because we want to serve as many customers as possible and this is also important to mention that we will be launching MasterCard services so that our clients can perform their transactions from anywhere in the world. Lastly, but not the least, we intend to improve our already existing technologies like internet and mobile banking.
Mr. Muhsin Mohammed Head of Product and Sharia Compliance
Amana Bank is not the first bank in Tanzania to offer Islamic banking services but they are the first commercial bank in the country licensed to offer fully Islamic products and services. The bank just this year celebrated its 4th anniversary so in view of understanding what makes it different from other banks; we started there and sat down with Head of Product and Sharia Compliance Mr. Muhsin Mohammed to find out more about Amana Bank and it being an Islamic Bank.
Q2. Amana bank comes across as a very friendly, grounded and cultured Islamic bank. Tell us what your main values are as a bank? Five core values that govern us at Amana Bank are Ethical (Comply with Sharia), Professionalism, Receptive, Transparency and Trust; all of these are self-explanatory and very straight forward. We live and breathe these values at Amana Bank. We also value the level of service we give our customers; we therefore have internal motto “Committed on excellence and dutiful delivery” which drives our staff to make sure highest level of customer service is achieved.
Q3. Other banks are making their profits by charging high interest rates on their loans. How does Amana bank make its profit? What you say is correct, we don’t engage in any interest rate dealings. There are other ways to make money as a bank. Ours
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us makes money by selling services and assets to customers in the following ways: • Financing facilities (On and off balance sheets) • Transactional charges ( i.e. money transfer charges, withdrawals, ledger fees) • Sell under Sharia compliant contracts such as Murabaha, Musharakah, Ijarah This of course is just to mention a few, there are various ways through which we monetize successfully without charging interest rates.
Q4. Do you provide a housing finance or mortgage to your customers? Not yet. The size of our business is not supportive, we are a relatively small bank growing very fast. Mortgages are a long term commitment which we cannot sustain for now. We are however currently in discussion with The Bank of Tanzania to see how they can help us finance and structure mortgages in the near future.
Q5. What are other products can your customer’s benefit? There are several products that we offer that customers can benefit from under two main categories, namely Liabilities and Assets. Accounts from depositors fall under liabilities. Amana Bank has different nature accounts to suite businessmen, children, students and women. I will list some of our accounts: • Annisaa account (For women) • Ihsah account (House of worship) • Nuru accaount (For children) • NGO account • Kilimanjaro Diaspora account • Ashraf account (For private banking)
Q6. What are the advantages and benefits of having an account with Amana bank? Firstly and most importantly, we are a fully Sharia compliant bank. Each of our products and services are designed to meet this requirement. As a result of this, our customers get a unique customer service and experience. Secondly, we have a wide range of unique service products. It is also worth mentioning that all the basic services that other banks offer, Amana Bank can offer them just as well and probably better yet in an ethical way.
Q7. Is Amana a Bank for only Muslims? Absolutely not. In as much as there has been a lot of mention about Sharia Law, we offer normal services that are basically done by anyone on a daily basis. Amana is open to customers from all backgrounds and faiths to enjoy our services.
Q8. How does Amana Bank play part in supporting real estate and property development in Tanzania? We are working with various business entities such as Property International Limited to finance plots for customers. The inability to support mortgages need not mean we are sidelined from the property market. Ours are zero interest fee plot finance plans that come much to the relief of many customers who could have otherwise not have been able to afford to pay high interest fees that come with conventional banks. We also deal with other organizations like National Housing Cooperation and other property companies to finance surveyed properties.
Under our second category which is assets we do plot financing, consumer financing, Ijarah financing (which implies leasing of property or services) and Musharakah financing (partnership financing. By Dominic Mwakifulefule
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PIM. Issue no.13, Dec 2015
Amana Bank 4th Anniversary Celebration
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PIL's Director Mr Masoud Khalfan (Middle) cuts the ribbon to launched customer service week at Amana bank main branch Dar es Salaam.
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Arusha branch staff pose for a photo with Mr Dassu Mussa (Manager,Marketing and Delivery Channels) & Muhsin Mohammed (Head of Product and Sharia Compliance)
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6 Head of product & Sharia Compliance Mr Muhsin Mohammed award Mr Hussein Omar Hajj Gonga for being a long term customer at our Arusha Branch. Marketing Manager Mr. Dassu Mussa award a certificate to Mr Saitoti Sitton Saibull at our branch in Arusha.
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Loyal customer Yasmin Ismail cuts the cake in celebration of Amana Bank fourth year anniversary. Looking on is Mr Muhsin Masoud Amana Bank Managing Director. Customer service Manager award a certificate at our Arusha branch.
PIM. Issue no.13, Dec 2015
Classifieds PLOT FOR SALE IN BAGAMOYO Well surveyed plot with title deed located in Kitopeni Bagamoyo area with 11,109 SQM, Block H plot number 114, space available for hotel site, close to the main road, Surveyed plan number 66740
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FOR ENQUIRIES PLEASE CALL +255 684 633 333
RESIDENTIAL PLOT FOR SALE IN BAGAMOYO A very attractive plot in Kitopeni Bagamoyo District, Space available only for residential uses, with 2011 SQM area with title deed, B;ock H plot number 107 Few metres from the main road.
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FOR ENQUIRIES PLEASE CALL +255 684 633 333 41 
PIM. Issue no.13, Dec 2015
Satellite Cities
Tatu City
Konza City
Kigamboni
Feature
Satellite cities are usually new planned cities that build on minimal pre-existing infrastructure or undeveloped land. They are different from normal cities in that their inception is as a result of strain from already existing cities so they are usually built adjacent to mega or metropolitan cities. Governments use these cities to right their wrongs by doing what most would argue they should have done in the first place. In East Africa, this is especially important and the trend of satellite cities has been spreading with one government trying to outdo the other. In 2012, City Lab writer Tayler Falk is quoted saying “Of the projected 20 fastest growing cities in the world from 2010 to 2025, 5 of them are located in East Africa”. Two of these fastest growing cities are in Kenya. This undoubtedly necessitates satellite cities being built since the rate of urbanization will make cities sprawl. 2015 has been the year of the underdog for countries that struggled to get a grip on the growth of
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their cities. At Property International, we rank East Africa’s 5 emerging cities as follows:
1. Kigamboni, Tanzania Located adjacent the country’s biggest city, Dar es Salaam, Kigamboni is a melting pot for virgin to seasoned property investors and is growing at one of the fastest rates in the region. Keeping to the theme of the underdog and seeing that the neighbouring “big brother” city suffers from the problem of slums, with a staggering 75% of Dar es Salaam, being squatter settlements, Kigamboni is indeed a breath of fresh air. It makes for the most significant change when viewed in the context of relevant satellite cities.
2. Kakungulu, Uganda Situated on the Kampala-Entebbe highway only 18 kilometers from Kampala, this is a fully built city with over 2500 new
By Dominic Mwakifulefule
East Africa’s 5 Emerging Satellite Cities of 2015 houses and even has a 50, 000 seater stadium. The back story to this city is that it was the brainchild of a certain Ugandan real estate entrepreneur by the name Anatoli Kamugisha and is a classic example of the will and ability of one man. Now the city of Kampala, which has the highest rate of urbanization in East Africa can breathe a sigh of relief knowing that there exists and city well put together with the amenities to match.
This $5billion city is being built to complement Nairobi. It’s an entirely new city and everything about it will be from the box. On paper, it innately makes for the best case city to rank first in our list but it remains to be seen how much of an impact this ambitious project will actually have. Tatu city will create 3000 houses a year in a country that has an annual housing shortage of 35,000-45,000 per year. Despite said challenges, it deserves to be on this list.
4. Konza Technology City, Kenya Konza is located 60kilometres from Nairobi, on the NairobiMombasa highway. The mere idea of a technology city is thrilling. Many graduates in the Information Technology industry struggle to find relevance after they graduate so a whole city dedicated to the industry is more than progressive, its life changing. Even though still just a pipe dream for now, it scores high on our potential gauges as a city to watch in the next half a decade. As a property investor, buying into a planned city like this one is finding a pot of gold at the end of the rainbow.
River City
3. Tatu City, Kenya
5. La Cite du Flueve, DRC Translated “River City”, the development is situated in two islands reclaimed from sandbanks and swamps in the Congo River, adjacent to Kinshasa. The main island will be a mixed commercial and residential properties, while the other smaller island is reserved strictly for villas and private homes. It’s refreshing to know that Africa’s most natural resource endowed country is moving some way in asserting itself as a real estate magnet. Many francophone investors from around Africa and as afar a field as France have shown great interest in buying property from the city by the river.
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AVAILABLE PLOTS FOR SALE
Ruby Estate is a Property International flagship project located 41 Km from Kigamboni Ferry. It is made up of 91 luxurious residential, commercial, hotel, religious, hospital, school and open public plots. The project is located in Tundwi Songani slightly past Mwasonga Village and within the proposed Kigamboni City. The estate is about 2.3Km off the main road. Other key features of the Ruby Estate include the new 6-lane bridge linking the city of Dar es Salaam and Kigamboni. Residential PER SQM
Tsh. 10,000/=
Commercial PER SQM
Tsh. 11,000/=
FOR ENQUIRIES PLEASE CALL +255 684 633 333
PIM. Issue no.13, Dec 2015 Review
Books/Puzzles/Jokes The Real Book of Real Estate is the one book,
the Bible, of real estate advice and techniques every investor needs to navigate through the ups, the downs, and the in-betweens of the real estate market and come out on top. The only thing better than one real estate expert helping you invest and win is twenty real estate experts with that same mission. For the first time ever, Robert Kiyosaki, best selling author of Rich Dad, Poor Dad, has assembled in one big book a star studded cast of real estate wizards and trusted advisors with one purpose in mind: to share their knowledge to help you win in real estate. This is the ultimate real estate desk reference you’ll come back to again and again. Whether you’re a seasoned investor or buying your first property, you will enhance your knowledge and grow your wisdom through this book. The book shows you how to value a property, handle leases, manage tenant relationships, get financing, even establish your own team of advisors, and so much more. You’ll hear from the insiders and learn from their wins and their losses.
Retire rich
Your indispensable guide to a stress-free retirement at an age of YOUR choice … In this new edition of South Africa’s best selling property book, Fast-forward Your Retirement through Property, Jason Lee provides up-to-date information on how to build a property portfolio that will allow you to take charge of your financial security for a stressfree retirement. Retire Rich through Property takes readers through every step of the property process, but goes further by focusing on: finding the right deals for retirement purposes; how to negotiate and finance a property with retirement requirements in mind; and whether to hold on to or sell a property for financial gain. This easily accessible guide is a must-read for first-time property purchasers and experienced investors alike who are looking to fast-forward their retirement or to retire comfortably at their chosen age.
How to find and buy a building Plot
This is the first and only comprehensive book specifically about buying land on which to build a house. It gives you all the essential information you need to locate, assess and purchase a plot. With more than 65 illustrations, tables and examples this book includes detailed advice on: where to look for plots, how to find plots others haven’t, how to maximise your plot, legal considerations, ensuring services are available, checking planning permission and planning restrictions, as well as valuing, negotiating and purchasing. Also covers finding and buying barns and other properties for conversion.
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