THE National Housing Corporation (NHC) pre-tax profit has slightly dropped by 1.1per cent after housing demand, especially in Dar es Salaam, went down.
In 2021/2022 the state-owned enterprise and the largest real estate firm in the land financials showed that the pre-tax profit minutely dropped to 92.9bn/- from 93.9bn/- in 2021.
NHC’s Director General, Mr Nehemiah Mchechu, said the profitability went down due to fall in state of the housing market in the country.
“The condition of the housing market in the country has recently started to improve … it is the expectation of the NHC to post a good profit in 2022/2023,” Mr Mchechu told reporters when revealing the corporation financials and state of the market in 2023.
Besides the profit drop, NHC revenues almost doubled to 257.47bn/- in 2022 from 144.42bn/ in 2021, pushed up mainly by earnings from construction projects, house sales and rental revenues.
The income from house sales rose from 29.33bn/- in 2020/21 to 121.95bn/- in 2021/22 also the income from construction projects increased from 25.60bn/- to 43.98bn/- . Rental revenue slightly went up to reach 90.76bn/- from 89.23bn/-.
The DG said the corporation balance sheet grows at around 12 per cent yearly since 2019. NHC balance sheet has reached 5.04tri/- at the end of June last year while its capital rose from 2.9tri/- mid-2019 to 3.4tri/- in the similar period last year.
For 2022/23, Mr Mchechu said they are planning to complete the construction of the stalled projects.
Also, some of the projects include the implementation of the Sami Housing Scheme (SHS), the construction of 560 houses in the Kawe, in Dares Salaam and some 240 houses in the Medeli in Dodoma for sale.
“These housing projects aim to solve the challenge of better housing for low and middle-income people,” Mr Mchechu said.
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