NHC revenue up as housing sector recovers
DAR ES SALAAM: THE government investments over the past four years in the real estate sector through the state-owned National Housing Corporation (NHC) are beginning to pay off, with long-stalled projects now completed or progressing steadily.
According to NHC, these investments have significantly boosted the corporation’s revenue. Over the past five years (2019/20–2023/24), the company’s annual income has grown from 125bn/- to 189bn/- an impressive 34 per cent increase.
As a result, the corporation has raised its dividend payout from 1bn/- last year to 5.5bn/- this year, with a target of 10bn/- planned for next year.
Speaking at a special meeting with editors in Dar es Salaam on Monday, NHC Director General Mr Hamad Abdallah credited this success to President Samia Suluhu Hassan’s political will and support—particularly her decision to allow the corporation to borrow funds to revive stalled projects.
The projects include Kawe 711, which had been stalled for about eight years and is now 60 per cent complete; in Kawe Morocco Square, fully completed; and the Samia Housing Scheme, 90 per cent complete with 560 housing units under construction in Kawe, Dar es Salaam.
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Another project is Golden Premier Residence at Kawe that had stalled for years has also been revived and the contractor is already at site to complete the project in the next two years.
“The success is largely due to the president’s commitment in granting permission for the corporation to access loans, enabling us to unlock and revive three stalled projects, including Morocco Square and Kawe 711. Currently, the Kawe 711 project is 60 per cent complete,” said Abdallah.
He further said that the Morocco Square project alone, valued at 174bn/-, has significantly increased the corporation’s rental income—rising from 2m/- when the plot was underdeveloped to current 600m/- per month after development roughly bringing annual collection to 7.2bn/-.
Mr Abdallah revealed plans for aggressive redevelopment in major cities such as Dar es Salaam, Dodoma, tanga, Arusha and Mwanza. NHC is preparing to construct multi-storey buildings ranging from 10 to 15 floors, especially in high-demand areas like Kariakoo in Dar es Salaam.
Regarding the Joint Venture (JV) policy launched on November 16th, 2022, Mr Abdallah said the policy is already yielding results, with 21 projects worth 351bn/- currently underway in Dar es Salaam (17 projects), Mwanza (3 projects) and Iringa (1 project).
On joint venture projects at Kariakoo, the DG said joint venture project momentum continues to build especially in Kariakaoo Business District, where a total of 16 projects were ongoing while 64 new projects are in the pipeline. Over the past four years, NHC has implemented 67 construction projects worth a total of 458.2bn/-.
Of these, 57 projects have been completed, while 10 remain under construction. So far, the corporation has constructed 5,399 housing units valued at 659.48bn/- for sale and rent.
Of these units, 3,217 are completed, while 2,182 are under construction and expected to be finished by June 2026. Our plan is to continue constructing modern and affordable buildings without compromising quality, he stressed.
