Dar es Salaam. National Housing Corporation NHC director general Hamad Abdallah has said that the decision to relocate government activities, including all ministries and institutions, to Dodoma negatively impacted Dar es Salaam’s real estate market.
Speaking to editors, Mr Abdallah said making Dodoma the capital city, which meant shifting Tanzania’s administrative duties to the central region, meant that houses and other real estate property occupied by the government and its officials were left vacant.
The relocation led to losses on the side of NHC, which owns the lion’s share of real estate property in Dar es Salaam.
“Whereas we are seeing a boom in real estate demand in Dodoma, it was the reverse in Dar es Salaam,” said Abdallah.
He, however, noted that the trend is slowly shifting in favor of Dar es Salaam, which remains Tanzania’s commercial capital despite losing its administrative role.
“We are witnessing some gains in the real estate market in the commercial capital. There is a gradual rise in demand for property from the private sector,” he shared.
In another development, construction the Seven-Eleven (711) located at the Mbezi Beach/Kawe roundabout in Dar es Salaam is set to resume construction after it stalled for Seven years.
The 711 residential real estate project that was meant to be completed within three years was stopped for seven years.
Speaking to editors in Dar es Salaam, National Housing Corporation (NHC) Director General Hamad Abdallah said negotiations are ongoing and construction will resume in September with 85 percent of the apartments already sold to tenants.
He acknowledged that NHC, which is a government institution, and the owners of the real estate project valued it at Sh105 billion and have incurred massive losses since the project was stopped.
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