With the country facing an acute shortage of modern houses in major cities, especially Dar es Salaam, the real estate market is hot cake for developers. The National Housing Corporation estimates that this country has a housing deficit of three million units. Yet very few Tanzanians can afford to engage in real estate development.

According to analysts, the monthly rates for a two-bedroomed fully furnished apartment located in places like Masaki, Mikocheni and Oyster Bay range between $3,000 (Sh4.8 million) and $8,000 (Sh12.8 million). Data gathered by the global real estate firm, Knight Frank (T) Ltd, indicates that office space in top grade areas stands at $21 (Sh33,600) per square metre. At lower levels, it is $16 (Sh25,600) per square metre. Prime areas for office rental in Dar will go for between $31 (Sh49,600) and $40 (Sh64,000) per square metre.

These figures are way beyond the reach of ordinary Tanzanians, so houses of inferior quality mushroom in locations like Manzese, Tandika, Msasani and Mwananyamala.

Comparing Dar to other East African cities raises many questions. In Kampala, the monthly rent per square metre in the centre of the city stands at $20 (Sh32,000) to $25 (Sh40,000). In Nairobi, Knight Frank pegs prime rents for office space at $15 (Sh24,000) per square metre per month. There are two ways to explain these figures. The first is lack of a mechanism to regulate rents in Tanzania and the second is the speculative tendencies of agents.

Unless these factors are dealt with, ours will remain a country where decent houses are reserved only for those who are blessed economically

This article is from darproperty.co.tz