Expert predicts 10% real estate growth

Real estate sector is expected to grow at 10 per cent, this year, as local buyers and sellers resort to online platforms to conclude their deals.

Online property platform, Lamudi Tanzania Country Manager, Mr Godlove Nyagawa, said local awareness in using online platform to transact property is increasing rapidly.

“This development will contribute significantly to economic growth,” said Mr Nyagawa while commenting on 2015 property market trend.

Mr Nyagawa said most countries in the world will relax regulations pertaining to land ownership in foreign countries with an increase in interest rates on housing prices globally while mobile phones will play a big role in online property transactions. “Emerging markets like Tanzania will continue to experience rapid growth in the real estate market,” he noted.

He pointed out that restrictive property legislations will be relaxed by many countries citing Philippines which is amending its constitution this year.

Mr Nyagawa further noted that Africa will likely receive more foreign direct investment which will boost construction of high-rise modern blocks.

“The property market in the country and on the continent will also benefit from the growing middle class which will create increased demand for housing,” the Lamudi Country Manager noted.

There is also going to be an increase in people acquiring smart-phones hence accessing the internet where they can transact for property.

Globally people are visiting real estate trading platforms such as Lamudi hence the rapid growth of demand. Apart from Tanzania, the online property selling platform has offices in Algeria, Cameroon, Ethiopia, Ghana, Ivory Coast, Kenya, Madagascar, Mauritius, Morocco, Mozambique, Nigeria, Republic of Congo, Rwanda, Tunisia, Uganda, Zambia and Zimbabwe.

Lamudi works with large scale professional agencies, individual property owners and middlemen to promote and market their properties which include plots of land, houses, apartments on its online platform and mobile application.

According to Ministry of Land and Human Settlements Development, the country’s housing demand increases by an average of 200,000 units per annum with a demand at over three million units currently.

“We call upon potential investors to come and join us in addressing this problem of housing which is an opportunity to them,” said former Land and Housing Minister, Professor Anna Tibaijuka.

With sustained growth of the economy at above 6 per cent each year and booming oil and gas sectors where over 40 international oil companies are already exploring for the resources, purchasing power for houses among the over 47 million people will improve.
Source: Daily News, reported by Finnigan Wa Simbeye from Dar es Salaam, Tanzania
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