Low GDP, but Zanzibar, Tanga go for detached buildings

Mwananchi Web Editor

Mwananchi Communications Limited

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In 2018 Zanzibar opened its doors to non-Tanzanian resident investors whose investments will be protected by law and international conventions to own properties in the isle.

According to him, the government created a conducive environment that has attracted such development, which in turn would later translate into economic prosperity of the region and the country as well.
“In 2018 Zanzibar opened its doors to non-Tanzanian resident investors whose investments will be protected by law and international conventions to own properties in the isle.
This, according to him, has allowed potential property owners to gain significant tax benefits and relief such that, he/she will not be obliged to pay capital gains tax, stamp duty or inheritance tax,” he observed.
“Property investors, together with their spouses and any children under the age of 25 can be eligible for residence permits lasting the duration of their ownership of a property,” he said.
Furthermore, said he: “Apart from property investors, but also the Zanzibar diaspora are doing great job, with their exposure to the international world, have massively invested in the construction of commercial and private homes.”

On the other hand, the local real estate expert said that since ports are considered to offer an additional value in terms of social and economic benefits in its region, then both Zanzibar and Tanga ports would also be a determinant factor.
“Where there’s a harbour, then there is business, so you need decent dwellings to accommodate the influx of businesses, mind you; in their respective stands, both Zanzibar and Tanga, do serve as tourism attractions which is an added advantage,” he expounded.
On his part, Mr Gerard Temu, an independent business consultant said: “I think another factor is, Mwanza has limited supply of developable land available to invest in, the thus increased price if you are to buy a parcel.”
Adding: “Speaking from a geographical point of view, Mwanza has attracted many developers, as a result, the area is extremely competitive in terms of land parcels. In Mwanza, one will need to have more money to buy a similar parcel that is sold cheaply in Tanga.”
According to him, Zanzibar and Tanga are perceived as new markets, and with the modern world – urbanisation, then vertical construction, which is an appropriate way to utilize land, the storey houses development, apparently becomes a desired model.
“For me it is much more to do with land affordability as well as investment attractions and incentives provided, which in the long run, would make good returns especially if the developments are meant for commercial purposes,” he noted.
Mr Temu further said: “Zanzibar has now become one of the country’s newest investment locations. As a result, there are impressive developments for investors seeking to catch a market that is ripe for investment, and most of these are in the West Urban region.”
According to him, with tourism figures rising coupled with the country’s economic stability as Tanzania has enjoyed relatively high economic growth over the last decade, averaging 6-7 percent per annum, then Zanzibar is expected to have more stunning holiday home developments.
Commenting on, Mr Athuman Sadik, a builder in Mwanza explained that his city has become expensive to build as land prices are becoming more expensive, and that could be the reason why property developers sideline the region.
He builds his argument saying: “Mwanza is the second most populated city in Tanzania, of course the second largest economy in the country. Mwanza has a population density of 134 people per sq. km thus the second after Dar es Salaam, the city’s large part is water and hills which makes land expensive.
Moreover, said he: “Although the geographical features of the region doesn’t affect property investments, one will need adequate funds as apart from the structure features, the nature of the soil will determine and add more cost of construction.”
Therefore, he was of the view that Zanzibar and Tanga might be cheap, yet with the promising future, no doubt, the regions hosts more storey houses than what Mwanza has.

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Low GDP, but Zanzibar, Tanga go for detached buildings

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