Prime
NHC unveils Sh607bn plan to change urban landscape
Kariakoo in Dar es Salaam is among areas earmarked for implementation of a Sh607 billion plan to develop several urban areas in the country. PHOTO | FILE
What you need to know:
- National Housing Corporation has approved 61 property development projects in one of the largest state-backed real estate investments in Tanzania’s history
Dar es Salaam. National Housing Corporation (NHC) has approved 61 property development projects across the country worth over Sh607 billion in what is set to become one of the largest state-backed real estate investments in Tanzania’s history.
The projects, which are expected to significantly transform urban infrastructure and boost local economies, will be implemented in key regions including Dar es Salaam, Mwanza, Moshi and Tanga—with the bustling Kariakoo business district in Dar es Salaam emerging as the flagship location.
NHC public affairs and information manager Muungano Saguya told The Citizen that 44 of the 61 projects will be implemented in Kariakoo alone. He noted that the area’s strategic commercial significance made it a magnet for private sector interest.
“We anticipate a significant increase in economic activity, especially in Kariakoo, where the number of traders and tenants is projected to grow from the current 6,000 to over 8,000,” he said.
The projects are also expected to raise NHC’s capital base, currently estimated at Sh5.7 trillion. Mr Saguya said that the combined value of the projects could lift the total asset base to around Sh900 billion, reinforcing the state agency’s financial position.
“Kariakoo is being re-imagined. All NHC-owned properties in the area will undergo phased redevelopment over the next five to ten years, turning the district into a modern, multi-use urban centre,” Mr Saguya said.
The move as a potential catalyst for job creation, SME growth and increased tax revenue. The investments are expected to stimulate demand across multiple sectors—from construction and retail to logistics and hospitality.
The NHC says the projects will offer upgraded commercial spaces and residential units, aligned with contemporary standards for safety, accessibility and energy efficiency.
“Although the board has approved the projects, we are still conducting due diligence, evaluating architectural designs and finalising negotiations with investors. Once this phase concludes, contracts will be awarded,” Mr Saguya explained.
The board approval follows a 2022 public tender which showcased 20 investment-ready projects—16 in Kariakoo and four in Mwanza—then valued at Sh351 billion. These projects laid the foundation for the current expanded portfolio.
In January 2024, NHC signed agreements with 21 real estate developers to inject Sh271 billion into the construction of new residential and commercial buildings on prime NHC land previously valued at Sh59 billion. The move involved demolishing 16 ageing structures to make way for modern complexes.
NHC director general Hamad Abdallah said last year that the projects would increase tenancy from 190 to over 2,000, including more than 1,200 shop spaces. Residential units will rise to 253 from the current 72. Construction was scheduled to commence from February 2024, subject to permit approvals.
In line with its public-private partnership model, NHC will initially own 25 percent of the new buildings, with private developers holding 75 percent. The corporation will later increase its stake to 50 percent in 10 years and up to 75 percent after 25 years.
It is anticipated that the model offers a sustainable blueprint for revitalising Tanzania’s real estate landscape.
