Hotel, Motels, Lodges and Apartment Investments in Tanzania

There is increased demand for accommodation in cities and metropolitan areas of Tanzania due to rapid economic projects in the country which have attracted a huge population of persons (international and local) with the need of residence

Residences and Apartments

The expatriate market in Dar es Salaam is relatively small and dominated by employees of donor agencies and other multilateral institutions. The small expatriate market is concentrated along the coastal areas of Oyster Bay whereby the supply of good quality housing is still in the initial stages of growth, expansion and contraction of donor institutions directly influences demand and pricing of the apartments and residential houses.

The supply of upper and middle level residential units is between 6,000 and 8,000 units that are by Knight Frank. There are new constructions and developments that are expected to put a further squeeze on rents due to the increase in population within the country that continuously demand for more apartments and residential houses.

Residences

In Dar es Salaam, there has been an increase in number of private owned residences. Those without their own residential houses rent from residences near the city, where most of them are located less than 2 kilometres from city centre with easy access to the main roads, the airport and all other important parts of the city.

For residential houses in Dar es Salaam, landlords frequently demand six, twelve and sometimes 24 months’ rent in advance yet which some people cannot afford because of low incomes they earn.

In Tanzania there is various numbers of financial institutions that offer mortgage facilities in areas of;

• Residential homes
• For purchasing land
• Commercial building in towns

Most banks in Tanzania prefer mortgage loans for developing purchasing land and building commercial houses around towns because they appreciate in value and are easy to sell and rent hence one can easily pay back the bank than private homes.

Banks which provide mortgage finance include;

• Banks Tanzania
• Barclays Bank
• Commercial Bank of Africa
• Diamond Trust Bank
• Housing Finance Co. Ltd
• Standard Chartered Bank

The areas with residential homes include;

• Kariakoo
• Mikocheni
• Mbagala kizuiani
• Upanga
• Mchikichi