Tanzania: Establishment of National Real Estate Regulator Almost Done

By Sylivester Domasa in Dodoma

ESTABLISHMENT of the real estate regulatory authority to supervise and guarantee level playing field for the fastest growing sector is on the final stage, the National Assembly heard on Thursday.

Lands, Housing and Human Settlement Development Minister William Lukuvi told legislators that

the government is at an important stage of setting up the regulator, which will also among other things, help to control overcharging of house rents by private developers.

The minister said the government attempts to compel private owners to relieve their tenants from lamp sum rents had failed.

"As the government, we cannot come between the landlord and their tenants' contracts...we will instead adopt regulations to address the problem," he said.

The government's plan to set up the regulator dates back to 2015 when the state announced it was studying the best way for the regulator to operate and prepare necessary legislations.

But, Minister Lukuvi, responding to a supplementary question by Nape Nnauye (Mtama-CCM) who had demanded the law to bar landlords from charging rent on annual basis, said: "The regulator will provide more solutions to the problem."

He described the problem as chronic, saying landlords were operating against the government guidance that requires them to charge their tenants on monthly basis.

Apparently, Tanzania is facing shortage of over three million with an estimated demand of 200,000 houses, annually.

Housing Deputy Minister Angela Mabula said the demand for housing in the country is increasing speedily, noting that the National Housing Corporation (NHC) is working on plan to build at least 200,000 affordable housing units, annually.

Responding to Aida Joseph Khenan (Special Seats- CHADEMA) who had asked when NHC will embark on building affordable houses, the deputy minister said the public developer has been implementing its ten-year plan-2015/- 2025-that seeks to bridge the demand for affordable structures.

"People have been failing to buy the structures due to high land prices, bank interests and cost of infrastructures. I can now confirm there is no empty house," she said.

The deputy minister said President John Magufuli had since 2017 tasked all councils to provide enough land for NHC, which has further lowered the prices of its buildings.In Chatur-Muheza, the house price is 24.6m/- compared to the previous projects-Ilembo- Katavi (30.6m/-), Mlole-Kigoma (34.2m/-) and Mtanda-Lindi (33.6m/-).

"NHC has now embarked on rent houses beginning with Chamwino in Dodoma," she said.

Meanwhile, the deputy minister announced that works on the stalled Morocco Square and Kawe complex have resumed after resolving the legal challenges that had put the project on ice.