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March 2016
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Featuring Properties from Tanzania & Kenya
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The Darproperty - March 2016 | 1 The Darproperty - August 2015 | 1
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TANZANIA MORTGAGE MARKET UPDATE
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 in 2014. • 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
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 in 2014). 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 8 | The Darproperty - March 2016
Real Estate
>>continued from page 12 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
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
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.
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
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.
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).
10 | The Darproperty - March 2016
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 the issue. 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
Figure 2 below shows market share for top eight mortgage lenders as at 31st December 2015, in terms of outstanding mortgage debt.
>>continues on page 12
Real Estate
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 12 | The Darproperty - March 2016
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 of Watumishi 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
14 | The Darproperty - March 2016
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HOW TO INVEST IN REAL BUYING PROPERTY
nvesting 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.
• 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 • Invest at least 75% of total assets in real that own real estate; they are businesses that estate assets provide cash flow to their investors. If you • Derive at least 75% of gross income from invest in a REIT with dividend reinvestment, you property rent or mortgage interest can grow your portfolio until you reach a point 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.
26 | The Darproperty - March 2016
where you can purchase individual properties yourself, or continue to invest in managed real estate portfolios. Example of REIT in East Africa For 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. WHCREIT 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
�“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
�
ESTATE WITHOUT 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 Company Many 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.
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.
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 By Eric Rosenberg. for developing new neighborhoods in growing
The Darproperty - March 2016 | 27 The Darproperty - August 2015 | 27
REAL ESTATE The ABCs of REAL ESTATE MARKET Expropriation Seizure 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 so Example: 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 fixed and adjustable rates in the same loan. The rate applied to the loan is a blend of fixed 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 fixed and adjustable rates. If the loan is originated at an interest rate 6% and the index justifies 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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>>continued from page 12 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 of 2015. This is lower than its East African neighboring countries. Figure 3 right shows mortgage debt to 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 December 2014. 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 364 million (US$ 168,796.66). Figure 4 right shows average mortgage loan sizes across different lenders. 8. TMRC Supporting Market Growth through Provision of longer Term Funds to worth TZS 43.9 billion (US$ 20,333,487.73) to seven of its member banks. As at 31st Members: December 2015, refinancing and preA key element in the growth of the mortgage financing mortgages advanced by TMRC to its market in Tanzania continues to be the member banking institutions was equivalent to provision of long term funding both in the 12 percent of the total outstanding mortgage forms of refinancing and pre-financing by debt. 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.
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 Figure 5 shows the overall contribution of role in developing the mortgage market. TMRC in the mortgage market in the four In the four years that TMRC has been quarters of 2015. operational, a significant impact has been TMRC currently has 12 borrowing members noted in the mortgage market. The number (all of which are now offering mortgage of banks offering mortgage loans has grown loans), and has already extended loans from only three banks in 2010 to 26 in 2015, and mortgage repayment periods increased from the
32 | The Darproperty - March 2016
maximum of seven years that 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 to providing 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 TZS 1 billion (US$ 463,177.40) was made under the 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.
Anna-Maria Shija Mugasa Risk & Compliance Manager|Tanzania Mortgage Refinance Company(TMRC)
The Darproperty - March 2016 | 33 The Darproperty - August 2015 | 33
34 | The Darproperty - March 2016
The Darproperty - March 2016 | 35 The Darproperty - August 2015 | 35
BUILDING PERMIT IN TANZANIA
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
36 | The Darproperty - March 2016
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 by Yusuph Mhando. | yusuph@darproperty.net The author is an associate consultant, Darproperty Tanzania
The Darproperty - March 2016 | 37 The Darproperty - August 2015 | 37
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KENYA’S RESIDENTIAL PROPERTY MARKET SHIFTS TO MULTI-UNIT HOUSING
hile housing prices in Kenya’s residential real estate market stabilized late last year, land costs have seen significant 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 significant growth. Prices in Nairobi have risen five-fold since 2007, with average land costs in the city up 9% in 2015. 40 | The Darproperty - March 2016
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.
sector growth,” Charles Odere, chairman and CEO of real estate company RE/MAX Kenya, told OBG.
Multi-unit focus Land inflation has already begun to change the shape of Kenya’s property market, prompting According to a recent survey by housing a shift away from standalone houses and consultancy HassConsult, land prices in towards multi-unit buildings. Nairobi’s satellite communities rose by around 11.9% last year, almost three percentage The KBA noted that apartments, which saw points ahead of comparable acreage in the relatively higher price movements last year, city centre. accounted for more than 90% of the units In Kiserian, a satellite community south-west of offered in the fourth quarter, followed by central Nairobi, land prices rose by more than maisonettes (5.8%) and bungalows (1.41%). 25% over the period. “This justifies the increased appetite and “With the devolution plan driving infrastructure relative affordability for apartments by an development in outlying areas, there are apparently growing middle class,” the report significant prospects for further real estate said.
market insight
Developers are increasingly building up rather marginally, falling by less than 1% to than out, as they seek to maximise returns KSh95.18bn ($936.5m). against a backdrop of limited urban space. Shortfall in entry-level housing Despite continued investment in boosting “We are seeing a lot of lending for housing residential housing stocks, Kenya continues to being channelled to residential projects in experience a nationwide housing deficit. the outskirts of major hubs like Nairobi,” Jared Osoro, director of research and Although 50,000 new residential units are policy at the KBA, told OBG. “Lending for added to housing stocks annually, national commercial development of multi-unit housing demand for new housing runs at around 250,000 units per year, Jacob Kaimenyi, is particularly significant.” cabinet secretary in the Ministry of Land, Appetite for new multi-unit housing saw the Housing and Urban Development, told media value of approved residential building plans earlier this year. climb by 11.2% in 2015, according to data from the Nairobi Directorate of Planning, In early February the government announced plans to provide both financial and nonCompliance and Enforcement. financial incentives to the private sector to help Just over 60% of the approved building bridge this 200,000-unit gap, which mainly plans were for residential developments exists at the lower end of the housing market. in and around the capital, for a total value of KSh147bn ($1.5bn). Investment in non- Among the incentives proposed is the provision residential developments, meanwhile, declined 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
The Darproperty - March 2016 | 41 The Darproperty - August 2015 | 41
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House for Rent Mikocheni B near Academic primary school 3 bedrooms, 2 bathrooms, enough parking, +255 762 210 893 / +255 713 301 172
SALE Tshs 340m
House for sale. The house is 500 meters behind Shamo park at Goigi Bagamoyo road Clean title, 900 sqm, 0715 686 051
SALE Tshs 250m
SALE
Plot for sale at magomeni usalama Also available for rent at Negotiable Price, We accept your Offer 0712 619 601
MP
SALE TSHS 800m Big compound with big go-down capable of up to 20 containers, 3 phase electricity, DAWASCO connection, 2 bedroom house fully kitchen, dinning room and 4 bedroom servant quarter 0688 210 891/ 0758 210 891
SALE TZS. 23,000 @SQM On 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
ZA
RENT
RENT $22
Office space to Let Morogoro and Bibi titi Road. 0789 865 933 / 0788 44 04 66 ENT E
NI
MB
CIT
KIN
Plot for rent Tanga Well fenced more than 30 acres plot at kasela. 0754 324064 0754 529 829
EZI
YC
DO ON
GA TAN
RENT
SALE TSHS 400m
3 bedroom House for sale at Msisiri, Plot no. 16, Block 26 Kinondoni with 2 Servant quarters. Price Negotiable 0757 714 476/ 0786 658 658
SALE TSHS 400m
3 Bedroom house Sinza kwa Remmy near The Place Fast Food Restaurant 288 SQM (NEGOTIABLE) +255 767 422 258 BEA
R
790 sqm to let, ideal for super maket, bank,clinic. 22 USD per sqm inclusive of service charge 0763 382 231
CH
SALE Tsh 260m
3 Apartment in one compound 2 bedrooms self contain. 2 gates Easy access to harbour and city center. +255655323286 Jmmako11@live.com
SIN
YC CIT
ILA
LA
MIK OC
ENT
HEN
RE
IA
House for sale Peninsular with the 2000 sqm plot size. Ready to move in house. Price Negotiable 0763 382 231
IJI
EZI MB
MA
MA
GO
SAK
ME
I
NI
BEA
CH
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
Property ideal for Restaurant cum Bed and Breakfast, Accessible by Tarmac road 0767 120 250/ 0787 120 250/ 0712 722 502
MB EZI
MIK OC HEN
UPA NG A,
KIG MLAM ANBON DIZ I I
I,
Goba, 31,000 per square meter 8 acres available for sale +255 786 011 755 or 763 011 755
RENT/Joint Venture
SALE $177,000.
$1,500
A fully furnished 4 bedroom 3 bathroom eco house electric fence, garden, parking, 24 Hr Security 0713 856 962
BEA CH
SALE TSH 31,000/=@ SQM
BA GA MO YO
GO
BA
MIK OC H EN IB
simply call 0767 200 202 classifieds@darproperty.net
Shreeji Tower 3 bedroom fully furnished +255 715 000 642
RENT
SALE 360m 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 ONLY TSHS 30,000/= VAT EXCL.
CLASSIFIEDS I ON
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K IG
AM B
MA SAK
MS AS
AN I
KA RIA KO O
simply call 0767 200 202 classifieds@darproperty.net
NO PHOTO
SALE TSHS 185m
Plot for sale at Kigamboni Kibada 800 meters from the road, with 3500sqm. with Tittle Deed. NO AGENTS PLEASE 0769 115 502 MIK OC HEN
IB
House for sale at Masaki peninsular with the 1500 sqm plot size. Price Negotiable 0763 382 231
KIN
ON
DO
NI
MA SAK I
MIK ML OC AN HE DIZ NI I
SALE
FOR SALE TZS 150M Apartment for sale in Kariakoo - Tandamti St, 3 Bedrooms, 2 bathrooms. +255 715 71 07 07
Joint venture
Plot for joint venture at msasani kimweri street 0712 86 39 51
NO PHOTO
RENT $1500
Villas in Mikocheni Area, 5 mins drive to Kairuki Hospital, Shoppers Plaza & Milenium Towers. +255 715 180 872 | +255 784 691 414
SALE TSHS 120m
RENT $900 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
TEG
SALE TSH 45m
SALE TSH 40m Plot for sale at Kibada, 765sqm Block 15 near main road with the title deed 0713 803 069
Tegeta Mivumoni, 1600sqm Plot for sale at Tegeta, Mivumoni. no title deed 0713 803 069
RENT $ 1000/ SALE $ 80,000
BO
KO
FG PD
SALE Beach property available for sale in the peninsular. Price Negotiable 0763 382 231
RENT $800 3 bedroom house, 1 self-contained Large compound Parking space Furniture negotiable High ceilings Private garden +255 754 781 240
SALE TSHS 30,000/@sqm For Residential Houses - 20 by 30 square meter plots 3 plots available for sale +255 786 011 755 / 763 011 755
RENT $750 5 bedroom house for rent at Ungindoni Kigamboni with large compound, servant quarter and garage 0685 215 737
ER ENT YC
KIG A
ET KAW
RENT $ 800
2 bedroom house, 1 self-contained Parking space Furniture negotiable High ceilings Private garden +255 754 781 240
CIT
MB ON
RO PD
FG
B NJU BU
SALE TSHS 51,000 /@sqm Bunju B these plots are suitable for development a School, Hotel, Multi-Purpose Hall, 3 Acres +255 786 011 755 / 763 011 755
I
UN
DS
3 bedroom, Unfurnished. Generator, Parking, Good Neighborhood, Balconies, Fitted Kitchen. +255 784 772 268 +255 784 772 268
KAW ET
MA
MS AS
AN
I
SAK I
RO UN D
S
RENT $3,000/ 2000 2 independent unit house at Masaki, Chore road with 3 bedroom units have kitchens and 2 bedroom in the upper level standby generator and Dawasco. 0767 264 900/ 0787 264 900
RENT $1200 Apartment in Mikocheni B, 5 mins from BARAKA PLAZA 2 & 3 Bedrooms,Semi furnished, Unfurnished +255 713 299 929 | +255 758 008 866 | +255 758 188 828 ETA
Plot size 1985 SQM +255 766 888 333 +255 716 444 888 +255 766 100 100
KIB AD A
MW
MA
ENG
SAK
E
I
SALE 18 acres property for sale at masaki peninsular ideal for investment project. Negotiable Price 0763 382 231
RENT Office Space to Let at Azikiwe Street near NMB Bank. +255 788 440 466 / +255 789 865 933
Real Estate Agents Directory in Tanzania DAR ES SALAAM
ABLA ESTATE DEVELOPERS & AGENCY CO.LTD Mikocheni Opposite Shoppers Plaza P.O BOX 3810, Dar es Salaam Tel +255 22 2772506 E-mail: ablaestate@bol.co.tz
NIKUZE REAL ESTATE AGENCY Morogoro Road P.O Box 10032 Dar Es Salaam Tel: +255 789/754/715/ 363 800 Email: nikuze@nikuze.com www.nikuze.com
CHINESE PROPERTY AGENT TRANSLATOR Msasani Road, Masaki English Chinese Translator Dealing with your chinese client sms 0756 50 11 37 giraffe_007@163.com
PHOTO & CO.ESTATE Kahama Road/Msasani peninsula P.O BOX 105121 Dar es Salaam. 0786 962 444 Email; Octavianfocas@yahoo.com.
GIMCO ESTATE AGENCY LTD Samora Ave, NIC Investment Hse, P.O BOX 8382 Dar es salaam Tel +255 22 2120988 Mob +255-784 900041
PRESTIGE PROPERTIES Phone: +255-713-764-447/ 0767471293 Tel:+255-22-266-4373 Email:info@prestigeproperties.co.tz www.prestigeproperties.co.tz
GOLDBERG COMPANY LTD Real Estate & Mining Trade P.O. Box 22159 Dar es Salaam Old Bagamoyo Rd, Mikocheni B, 0715 270 517 / 0754 270 517 goldbergtz@gmail.com www. goldbergtz.com NEW DAY PROPERTY AGENCY COMPANY Mwinyijuma Road - Kinondoni, Room no.84, UVCC Complex +255 753 645 434, +255 717 035 552 +255 767 575 758 www.facebook.com/ raymond samson Laizer KEY REAL ESTATE SOLUTIONS Regent Chwaku North Ursino Tel: +255 22 2701674 0715 053 803, 0786 053 803, 0754 28 46 84 mariam@keyrealestatesolutionstz.com www.keyrealestatesolutionstz.com
PROPERTY CONSULTANCY & SERVICES LTD 2nd Floor Kevin House - Samora Avenue P.O BOX.7152 - Dar Es Salaam +255 22 2120402, +255 713 690 220 info@pcsltd.co.tz www.pcsltd.co.tz
TANGANYIKA ESTATE AGENTS Sea Cliff Village (next to Sea Cliff Hotel) Plot 532, Toure Drive +255 717 032 633 info@tzagents.com TRELD COMPANY LTD P.O BOX 7656 Dar es Salaam Location Msasani Peninsular off toure drive +255 732 222 888, +255 716 777 999 treldestates@yahoo.com www.treld.co.tz
+255 756 960 960, +255 714 444 250, +255 752 444 606.
MY BEACH Old Bagamoyo Rd. opp Yuasa auto impex P.O BOX 105200. Dar es Salaam Tel; +255 22 2701710
48 The DarProperty August 2014
ARUSHA +255 653 005 530, MWANZA +255 653 005 535, INFO@TZREALESTATE.CO.TZ TZREALESTATE.CO.TZ
ARUSHA ARUSHA AWESOME HOMES AND PROPERTIES.
Shanti House, Plot 58 Block E Sokoine Road P. O. Box 249 Arusha, Tanzania. info@arushahomes.com www.arushahomes.com +255 754 337 899 / +255 786 337 899 HOMES & PROPERTY AGENCIES LTD Land Surveyors & Property Managers P. O.Box 10079 Arusha Boma Rd. Arusha 0787 805566 hopraltd@gmail.com TANGANYIKA ESTATE AGENTS
Shoprite Complex, +255 785 984 467 info@tzagents.com ZIPO HOMES
Rivergardens Business Park, Rm 4 P.O Box 20 Usa River, Arusha +255 787 474 580/+ 255 754 320 513 info@zipohomes.com www.zipohomes.com
MWANZA MWANZAESTATE Mwanzaestate.com +255 714 245 779 kisolimorris@hotmail.com
ZANZIBAR Zanzibar - properties.com Tel: +255 774 44 19 07 Hotel Marine - Malindi Zanzibar
ENHANCE YOUR VISIBILTY & CREDIBILITY GET LISTED HERE WITH YOUR LOGO Tshs. 48,500/= Monthly / Tshs. 500,000/= Annually +255 784 23 89 62, 0688 75 18 68 | sales@darproperty.net
Real Estate Agents Directory in Kenya AXIS REAL ESTATE 0727 572836 0713 908 406 kv@kenyavaluers.com www.kenyavaluers.com 48209 Nairobi Kenya
HASS CONSULT LTD ABC Place, 1st Floor, P.O. Box 14090, Nairobi Tel: +254 20 4446914 www.hassconsult.co.ke
ARK CONSULTANTS LTD No. 16 Nas Apartments, Milimani Road P.O. Box 42093, 00100 Tel: +254 20 2726870 www.arkconsultantsltd.com
KARENGATA PROPERTY MANAGERS Head office: No.47 Marula lane, Karen P.O BOX 1552, Karen. 00502,Nairobi. 0733613744 / 0735099932
PROFESSIONAL PROPERTY MANAGEMANT LETTING & SALES 0708 848481 0733 785698 160662 Nairobi Kenya
KENYA VALUERS AND ESTATE AGENTS LTD 3rd Floor, Museum Hill Centre, P.O. Box 48209, Nairobi Tel: +254 20 3745697/512 www.kenyavaluers.com
SEMA ESTATE AGENTS Springette Office park, Block H2, Lower Kabete Road. Tel 020 2017940 / 0725 545527 seamus@semaestateagents.com semaestateagents.com
CORAL PROPERTY INTERNATIONAL LTD +254 735 801077 info@coralpi.com www.coralpi.com
DUNHILL CONSULTING LTD Hevea Court, Block A3, No.15, Eldama Ravine Road, Westlands Tel: +254 786 386 445 www.dunhillconsulting.com
FINANCIAL AND PROPERTY CONSULTANTS LTD Arbor House, Arboretum Drive P.O.Box 14459-00800 Nairobi Tel: +254 722 524383 www.fapl.com
KNIGHT FRANK Lion place, Waiyaki way Tel +254 20 4239000 / 0733 603260 info@ke.knightfrank.com
PENTA KENYA LTD Tropical lane off Wood Avenue P.O Box 101493 00101, Nairobi Tel 0731471872 / 0711 615782 info@pentakenyaltd.co.ke
PROLAND REALTORS LTD 6th Floor, Maendeleo House, Monrovia Street P.O Box 29509-00100 Nairobi Tel: +254 720 353437 www.prolandrealtors.co.ke
COMING SOON RWANDA REAL ESTATE AGENCY DIRECTORY
HALIFAX ESTATE AGENCY LTD Crossway Road, Westlands Tel: 3741269/3740306 info@halifaxestate.com www.halifaxestate.com ENHANCE YOUR VISIBILTY & CREDIBILITY GET LISTED HERE WITH YOUR LOGO Kshs. 2,500/= Monthly / Kshs. 25,000/= Annually +255 784 23 89 62, +254 720 35 34 37 | sales@darproperty.net
The Darproperty - March 2016 | 49 The Darproperty - August 2015 | 49
Publisher
PATRONS
Darproperty Tanzania Editor In Chief
Larson Chumi
editor@darproperty.net
Business Development & Products
Abdallah Mugasa Yusuph Mhando Janeth Samwel Designs & Layouts
Dennis Maunga Mussa Khamis
dennis@darproperty.net
Marketing & Sales
Michael Francis
michael@darproperty.net
Distribution
Boniface Metta Online Content Manager
Mbwana Mbura Aloyce Mkude
Finance Administration Manager Ismail Mutanda Public Relation Officer Maria Urassa Accounts Executives Grey Mateni Faraji Senkoro Moreen Mrema Lucynancy John Office Assistant.
Brigita Laurance Regulatory & Legal Advisors
ABC Attorneys
Mikocheni B - Bima road, P.O. Box 105499 Dar es Salaam +255 22 2780 517 +255 784 238 962, +255 713 751 868 info@darproperty.net Distribution Should you have problems in obtaining copies of DarProperty Magazine, please contact
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For Comments, Complains & Compliments pr@darproperty.net Country Director - Kenya Xavier Nanchengwa Disclaimer
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INDEX
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PATRON PAGE NO ACB........................................................................15 ADAMAS.................................................................3 AYUB......................................................................31 BERGER .................................................................52 CES.........................................................................39 CHOKOLE.............................................................38 CINAN PLAZA......................................................19 CRDB BANK...........................................................5 DAR CERAMIC CENTER........................................4 DAT..........................................................................2 DCB BANK............................................................23 HOTEL SAPHIRE ..................................................29 INDIAN OCEAN APARTMENT............................25 IVORY TOWER.......................................................9 JAMAL...................................................................27 KILI GOLF..............................................................13 MARINA........................................................20&21 MOSES..................................................................47 MWANZA.............................................................30 OCEAN LINK........................................................47 OLJORO TAN CITY.....................................34&35 PPF..............................................................1,11&14 PROPERTY CONSULT..........................................19 REEF..........................................................................6 REMAX..................................................................21 SHANGHAI ELEVATOR.......................................22 SIMBA CEMENT......................................................1 SWISS TOWER....................................................19 TANGANYIKA ESTATE AGENT.............................7 TEMSO..........................................................44&45 VITAFORM...........................................................16
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