Dar es Salaam — A Chinese firm has heightened competition in the local real estate market by announcing plans to spend $20 million in new housing projects. Dong Xiang has already acquired a 7,930 square metre piece of land along the Msasani beach suburb in Dar es Salaam.
This is for construction of 98 residential apartments for both upper and middle-class income earners. The Deputy Director for Dong Xiang Liu Yupeng said last week, the residential project being undertaken by his firm was focusing on providing accommodation for Tanzanians.
Xiang said his project would be able to generate tax for the government, creating employment to Tanzanians as well as providing Tanzanians public with descent homes. According to the recent published online survey on the cost of living calculator, expatistan.com, Tanzania is said to be offering the highest rents.
In affluent areas house rentals can be as much as $2,711 (Tsh 4.3 million) a month. The survey Tanzania experienced a growth of 5.3% in the real estate sector between July and September 2013 resulting from the increase in demand of accommodation and business services.
Xiang however said, his firm was making sure that they enter into partnerships with local real estate firms and Tanzanians with land for a win-win situation.
He said this would enable most citizens to own affordable homes. "Land is very necessary for our projects and in the near future we would encourage Tanzanians landlord to come forward for joint venture projects," Xiang said.
Currently Tanzania major firms involved in the real estate includes the state firm National Housing Corporation (NHC), the National Social Security Fund (NSSF) and other social security firms.