Tuesday, December 8, 2015

NHC envisages cheaper houses

ALVAR MWAKYUSA
THE National Housing Corporation (NHC) in collaboration with the Institution of Engineers Tanzania (IET), plans to conduct a research on reducing the cost of construction to enable the majority of Tanzanians to access decent and affordable houses.

In the same development, the corporation said it was ready to provide 30 per cent of funding for developing a master plan for the City of Dar es Salaam.
“The research to be conducted by IET will enable us to build houses at lower costs since most people are low income earners,” the NHC Director General, Mr Nehemiah Mchechu, said.
He urged other players in the Real Estate Industry such as social security schemes and private developers to support the government with funds to carry out the master plan for proper development of the City.
Mr Mchechu made the explanation during a presentation at the 28th national conference organized by IET on the role of engineers in the development of affordable housing in the country.
The state-owned Real Estate developer has undertaken various affordable housing countrywide which costs between 40m/- and 60m/-but calls have been made for the amount to be reduced to accommodate low income earners.
Mr Mchechu however has attributed the cost of the housing units to a number of issues such as macro-economic factors, value added tax (Vat) charged on buyers as well as costs of setting up power, water and road infrastructures.
“In view of the above we have started discussions with power and water utilities to see how we can arrange for them to set up the facilities at our projects and this will minimize costs,” Mr Mchechu noted.
He added; “The macro-economic fundamentals include the high interest rates and exchange rates which have been adding costs of building materials, most of which are imported.”
The DG went on to add that after undertaking low-cost projects in all Regions plans were underway to cover all districts in the next seven years.
At the same occasion, Sales Coordinator of BOA Bank, Ms Mwamvua Majeshi, said since the establishment of mortgage facility, loans amounting to 156bn/- have been dished out for the housing sector. She noted though higher interests rates and limited housing units in the markets were among challenges facing the industry.

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