World Bank values Dar’s real estate Sh273bn more than Nairobi

Edward Wanjala said:

Not investment but by value

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Capital Investment equivalents Capital Value
Need say more???

Our motto: sky is the limit.
We want to top the sub Sahara Africa.

eliakeem said:

Our motto: sky the limit.
We want to top the sub Sahara Africa.

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If u read that article in its entirity, and understood it well.....then the sky is the limit, and good luck!

Iconoclastes said:

If u read that article in its entirity, and understood it well.....then the sky is the limit, and good luck!

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Where you are broda

in real estate or real property we have no competitors. coz we constructed ultra modern buildings which you can't find anywhere in the region.

ahaaa haaa haaa

Livale said:

What you're potraying is hardly different from when the west claims Aliens built the pyramids. You choose to believe a certain blanket statement, despite numerous facts pointing to the contrary, just because you've a bone to pick with Kenya(ns). You should know better.

I've read somewhere that 90% of Dar is a slum, but I don't believe it due to various facts pointing otherwise. Yah, I mean it's a lil more disorganized with very little in the name of zoning but to claim that this city I saw is 90% slum same as to claim that a very tiny portion of Nairobi hold 2.6m people as per some western NGOs ni upuzi wazungu wataka tuamini.

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I think you read something in the lines of 90%(of which is a lie) of dar is squatter developments...

Its squatter yes.. Because it doesn't conform with modern urban concepts.. But its traditionally planned.. These people have roads..open spaces and fundamental basic services ..like dispensaries , schools and religious buildings. .

Usisikilize watu... Dar es salaam is so much in better shape.. It can be upgraded much easily and still keep its originality.. Na Nairobi could hv done a better job if they agreed the slam areas are part and parcel of naii.. Integrate it to the nai metro so people of kibera will enjoy the economic success and enjoy the freedom and guarantee to change and develope their kibera. Manzese is a gud example for dar..

Kiukweli hata wingi wa majengo ..Dar imeizidi nairobi ..Kama kuna mkenya ameshafika kariakoo ..that area has alot of 7flr + to 15flr buildings yan ni nying sana ..hapo bado hujaongelea Upanga na Ilala ..Dar ina majengo mengi sana .Try kuangalia Upanga na Kariakoo

Hii pic ni before 2012


A part of Upanga

Livale said:

It's very simple mathematics as to why Dar's property is valued higher than Nairobi's. Office space charge is on average $22 in Dar and $12-$14 in Nai per square meter . So for a 20storey building in both cities, the one in Dar is valued at almost double that of Nairobi for the same floor area space in square meters. To equal Dar in property worth at current prices, Nairobi has to have almost twice the amount of office space and property Dar-es-salaam has.

But Dar has really grown in recent years, it's grand skyline tells a good tale.

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You're an intellectual, good comment

Njobepo said:

Haya majamaa yanatambua jinsi watanzania tunavyopenda sifa, hata kama ni za kijinga

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Haya basi nairobi is leading...... umefurahi?

Livale said:

It's very simple mathematics as to why Dar's property is valued higher than Nairobi's. Office space charge is on average $22 in Dar and $12-$14 in Nai per square meter . So for a 20storey building in both cities, the one in Dar is valued at almost double that of Nairobi for the same floor area space in square meters. To equal Dar in property worth at current prices, Nairobi has to have almost twice the amount of office space and property Dar-es-salaam has.

But Dar has really grown in recent years, it's grand skyline tells a good tale.

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I bet to differ with you broda.
the methodology that used by them (World Bank) is quite different from what you tried to elucidate here. the bank used the cost or the investment/sunk cost approach, whereby the value of the properties extracted from the contract documents. the contract sum is equated to capital investment.

your methodology which you explained above normally can not depict the investment cost but investment value. and one of the big short fall of this approach is when the occupancy rate is low. when a big portion of building fall vacant, you can't realise the true value of the property.

the bank was researching the capital investment among the countries in the region. it came in a conclusion that, a lot of money have been sunk in Tanzania if you compare with other countries in the region.
so capital expenditure (capex), extracted from contract documents, was the parameter that taken into consideration and NOT the return on the investment.

in few years we will be somewhere on the top of sub Sahara Africa list.

Tanzanian capital Dar es Salaam’s real estate has been ranked ahead of Nairobi and Addis Ababa in the World Bank’s latest cities report, which cites land fragmentation and weak property rights as the sector’s biggest impediments in Africa.
The report, which was released yesterday, estimates the economic value of Dar’s real estate at Sh1.2 trillion ($12 billion) ahead of Nairobi’s Sh927 billion ($9 billion) – a Sh273 billion gap.

CC: COLLOH-MZII RELOADED

we are now focusing the real estate investment in other cities LIKE Mwanza, Arusha, Mbeya, Tanga, Dodoma.

jamani kwenye real estate investment tunatisha SANA. for only twenty years, since the abolition of rent restriction ACT and building acquisition ACT, we are topping the region for real estate investment.

In few years to come we will be leading the central Afrika and some parts of southern Africa.
Bravo Dar es Salaam.