Therefore, time has come for a real estate regulatory authority to be established. This was said in Dar es Salaam yesterday by the Minister of Lands, Housing and Human Settlement Development, Mr William Lukuvi, at a panel discussion with real estate developers on the future of the real estate business in the country.
Mr Lukuvi noted that the business has grown so fast over the past few years, thus a framework to govern the sector is vital or rather the government will be losing a lot of its revenue.
In the year 2012, the current Minister of State in the Vice- President’s Office (Union Affairs and Environment), Mr January Makamba, who by then was Minister for Communication, Science and Technology, had presented his private motion to the National Assembly meeting on the need to formulate a Rental Housing Act.
His proposal had cited issues such as a need to establish a Real Estate Regulatory Authority (RERA) aimed at regulating the sector and enable the government to obtain proper tax from the developers and owners of houses.
The minister also pointed out that the law will also look at the rights of tenants who in most cases are being exploited by their landlords charging heavy rents that are not relevant to the nature of the houses and facilities offered.
“Preparations on the law are expected to be completed within this year for implementation to begin as soon as possible and in the end all parties benefit in the process,” said Mr Lukuvi.
Formulation of a proper law was vital because in most cases it was hindering proper planning of the city and the local government to collect its revenue.
“This area should be properly supervised because in most of the country, it has been attracting issues such as money laundering, therefore regulating it would be helpful to the government.
He called upon all the real estate developers in the country to devise a strategic plan that would come up with quality and affordable houses unlike the current housing projects.
