Real estate expert urged banks to give developers direction

04Mar 2016
The Guardian Reporter
The Guardian
Real estate expert urged banks to give developers direction

COMMERCIAL banks which are shareholders at Tanzania Mortgage Refinance Company should give private real estate investors the domestic market’s needs so that they can target such areas.

MINISTER JANUARY MAKAMBA

Global Land Solutions (GLS) Chief Executive Officer, Murtaza Adamjee said the country’s real estate industry is in crisis because the so called middle class family cannot afford prices being charged by developers.

“Our clients who are mainly property investors want to know what kind of buyers are available in the local market,” Adamjee said pointing out that private developers are struggling to rent and sell their property.

Adamjee whose company is in the business of advising private real estate investors and marketing market their product, pointed out that because banks which are involved in mortgage financing have applications from clients who seek to buy houses, they know exactly what kind of clients are available.

He pointed out that knowing the kind of client available and their income will enable private developers target such group. “My clients want to know who are the middle class and what is their level of income?” Adamjee noted saying prices of houses are sky high which the so called middle class cannot afford.

“For example NHC are selling a two bedroom apartment at their new construction site at Kawe for over US$ 180,000, is this affordable by the middle class?” he inquired saying private developers look at National Housing Corporation as a guiding company in real estate business.

He pointed out that the problem of housing in the country and especially in big cities like Dar es Salaam will not go away if the domestic market is not properly regulated.

Adamjee’s observation was backed by National Environmental Management Council’s Director General, Dr Bonaventure Baya who noted that the problem of slums in Dar es Salaam and other cities in the country is a result of poor investment in real estate.

“People are constructing houses clandestinely because there are not enough surveyed plots,” Dr Baya noted saying that rapid increase in urban population has made things worse to NEMC which is forced to demolish structures erected in undesignated areas.

NEMC demolished hundreds of houses built in flood prone areas earlier this year in an exercise which left hundreds of families homeless.

The exercise was suspended after a group of prospective victims rushed to court and won an injunction last January. It is estimated that over 70 percent of Dar es Salaam settlements are slums.

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