REAL ESTATE INVESTMENT ANALYSIS IN TANZANIA

The Real Estate Market of Tanzania is opening up, calling onto practitioners, professionals, policy makers and public to take action.

Here is a project proposal for real estate investment analysis that I use to carry out my client work. Today we will digest SITE VISIT.

So, as a landed property expert — it is unethical to carry out a project without visiting the site. It is like being human without being born. Site inspection allows us professionals to understand the nature of the work, to take measurements, to record key things that will be assed/valued; familiarize with surroundings that affect the project and how the project can affect surroundings. Also, because it is an outdoor activity, usually it is the best way to interact with the client by small talk & chit chat. When clients ask me not to visit the site because they are so busy or they don’t wat to pay the fee (standard rates are TZS 50,000, plus or minus), I often wonder…

So, when I visit a site I usually have a tape measure & checklist with me, on my ipad & stylus or paper pad & pen. It usually goes like this:

1. Full description of the land and proposed sections of the project, taking measurements of the building & land
2. Status of the machines, equipment & vehicles i.e. new, repaired, scrapper etc.
3. What are the objectives of the project?
4. How will it be operated?

a) What are the main components of the project?

b) What are the raw materials needed to be successful (usually financing scheme, technical side to build, and tenants to occupy it)

c) Types of inputs and outputs

3. What is the average cost of the project?

4. How will the project benefit stakeholders: i. Investor ii. Country iii. Community nearby iv. Others

5. Historical information of the place and natural heritage, if any

6. How is the project financed?

7. Copies of lease contract

8. Views of the local community to the proposed development 

• Employment opportunities 
• Corporate social responsibilities e.g. erection of a nearby police post
• Environmental impacts
• Noisy pollution
• Waste water
• Air pollution

9. Possible problems that are likely to affect the project ( EIA) & what are the mitigation measures?

10. Full description of the neighborhood

i. Location from the city centre and geolocation data

ii. Existing land use in the area

iii. Population of the area/demographic factors (i.e. income)

iv. What are the future prospects to the area, and future trends of industry

11. Photos, geo location and data of similar projects nearby

Note: Public claims include — employment opportunities, school facilities, classless dispensary

We will have 10 Series posts for real estate investment analysis that will run from today 23rd June 21–2nd July 2021, here on LinkedIn, Twitter & Medium.

Judith Mwanri is a holder of BSc. Real Estate (Finance & Investment) from Ardhi University, she is a also an MBA student at ESAMI Business School. She is a real estate investor & property owner. She founded her partnership firm — Hamiahapa in 2018 that specializes in co-working spaces at different locations in Dar es Salaam. Judith has 5 years experience in REAL ESTATE MARKETING & AGENCY, PROPERTY MANAGEMENT & FACILITIES, PROPERTY DEVELOPMENT, PROPERTY INVESTMENT ADVISORY & VALUATION, PROPERTY TECHNOLOGY & DATA and REAL ESTATE FINANCING CONSULTANCY.

Contact: hamialimited@gmail.com