How to start a Successful Real Estate Business in Tanzania?PHCS
How to start a Successful Real Estate Business in Tanzania?
The real estate business is booming right now n Tanzania. It’s never too late to be part of this business. If you want to learn how to start a real estate business in Tanzania, then this article is all you need to get there.
I have compiled the step by step guide on how to start a real estate business in Tanzania, also provided the best cities that favour the growth of real estate business in Tanzania and the major types of real estate business that you can engage in and make a profit just like the big players.
Since 2015, there has been an increase in high demand for real estate properties such as land, housing and office spaces in Tanzania.
With the rapidly growing population coupled with the increase in ICT, many individuals in Tanzania’s capital cities and other areas have taken to their hills to venture into the real estate business.
But what then do we consider real estate in the Tanzanian content? It’s very simple, it’s the buying selling and renting of properties such as land and houses.
Type of real estate business operating in Tanzania
There are 3 major common forms of real estate business operating in Tanzania.
a). Commercial real estate
Commercial real estate in Tanzania includes the flipping of commercial structures such as renting space, car parks, gas stations, retail space, office buildings and storage facilities. Commercial real estate is the most profitable form of real estate in Tanzania.
Its often carry out by wealthy individuals or groups of persons or by companies who decided to grow their portfolios.
b). Residential real estate
The second type of real estate business in Tanzania is Residential real estate. This involves the flipping of residential structures from one form to another, or from one use to another.
Residential real estate is mostly dominated by Landlords and landladies. It involves renting out apartments, studios, single rooms, duplexes and villas etc.
Since the outbreak of the Coronavirus, residential real estate has been on the rise.
c). Land Flipping
The last form of real estate business in Tanzania is land flipping. It’s the buying of land from one person at a given price and selling at a higher price to another person.
It also involves buying land at a low price and selling it after a certain number of years when the value of the land has risen.
Best cities to start a real estate business in Tanzania
If you want to make it big in all 3 forms of real estate, then you will need to consider doing business in some major towns and cities. The real estate business turns out to be more profitable in highly populated cities.
Residential real estate then to be more favourable in cities with higher learning institutions. Below are the best cities for real estate business in Tanzania:
- Dar es Salaam.
Steps to starting a successful real estate business in Tanzania?
The real estate business is difficult to understand as many always try to complicate it. Anyone can venture into it, all you need is patients, management skills and most important negotiation power.
Below are the following steps you must take if you want to start a successful real estate business in Tanzania.
a). Conduct a research
The first major step is to conduct a feasibility study of the type of real estate business that is more profitable in your area.
If you live in areas with higher learning institutions, residential real estate will be the best to venture into. Land flipping would be more profitable on the outskirt of the city centres. While commercial real estate is more profitable in industrial and business zones.
So, endeavour to carry out good research to know which form of real estate would e more profitable to venture into.
Read: How to start a small business in Tanzania
b). Decide on the type of real estate
After doing a feasibility study, you will need to decide which form of real estate you want to venture into.
Would you want to engage in residential real estate, do you want to become a real estate blogger (someone who writes content online on real estate’s just like the one u currently reading) or do you want6 to become a real estate consultant, or real estate developer?
So, this is the time you decide which aspects of real estate you will participate in.
c). Choose the right location
Location is an important aspect of every business, so make sure to choose the right location. If, you wish to open an office, let it be in an easy and accessible place.
Location here also implies your choice of the right town or cities, check the list above for the best towns and cities to start a real estate business in Tanzania.
d). Choose a unique business name
Make sure to choose a name that reflects your form of real estate business. Pick a name that is unique and can easily be remembered by everyone after coming in contact with your business.
e). Draft a business model or business plan
Don’t fail to develop a business plan for your real estate business. A business plan is vital as it will help you have an overview of the business and how you will operate it, what costs you will incur and what risks are associated with the business.
f). Register your real estate business
If you want your business to gain the trust of the general public, then you will need to register your business. If you have no idea how to do so, you should get a real estate legal consultant to assist you with the registration process.
Real estate is a very risky business especially when it comes to land flipping. People want to make sure they are buying a particular property from a trusted source. So, registering your real estate business will help gain the confidence and loyalty of the general public.
Read: How to start an Interior Painting Business
g). Have a physical office
Have a physical office for your business. If you are trustworthy and recognised by the Tanzania law, then you need to get an office.
Unless those involve in online real estate such as real estate bloggers, otherwise you need an office. If you don’t have money to rent a public space, you can at least use your home for a start.
h). Build a strong team
Team building is an essential key to success for a real estate business in Tanzania. You need to have a solid team that you can operate with.
You can also work hand in hand with your major competitors. The goal is to satisfy your customers, so let your competitors cover you up when you don’t have a particular service to offer to your clients.
Especially for those in residential real estate, you need to work hand in hand with one another.
i). Build a website
Build a website for your real estate business if you want to make it profitable. Not every potential customer must come from your home town or live next to your office building.
Take your business online to increase the scope of getting everyone in need of your services to be aware you exist.
Even if you don’t have money to build a basic website, try at least to have a social media presence, Build a Facebook page for your business.
j). Promote your real estate business
With everything running well. You need to advertise or promote your business with everything means at your disposal. Promote it online on social media, google ads etc.
Print t-shirts flyers and stickers distributed to individuals. Use local newspapers as well to help boost your business.
Promote your real estate business not once but as many times as possible.
To summarize, if you want to start a successful real estate business in Tanzania, you will need to carry out feasibility studies, develop a business plan, select your niche, choose the right location, register your real estate business, build a website and regularly promote your business at all time.
Note that there are very few players in the real estate business in Tanzania and Africa as a whole. So, invest now and make Tanzania a better place for all.
If you find this article useful, the best you can do is to share it with your friends and family members so that they can also gain the same knowledge you have acquired.
If, you have any questions or suggestions, please share them with us in the comment section below.
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