Significant cost-push factors in owner-built incremental housing construction in Tanzania

Alananga, Samwel; Lucian, Charles; Kusiluka, Moses Mpogole

doi:10.1080/01446193.2015.1090007

Cited by 12 publications

(23 citation statements)

References 25 publications

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“…1,000,000 which is equivalent of US$1.85 per m 23 . A similar range of between US$0.6 per m 2 and US$2.5 per m 2 was previously established by Kombe [45] in an empirical study of peri-urban areas of the same city. The relative cheapness in unplanned areas is because many costs involved in titled areas such as for planning, cadastre surveys, premiums and land rents are not imposed in unplanned areas.…”

Section: Data Sourcessupporting

confidence: 77%

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Challenges in Administering Property Value Capture in Tanzanian Cities

Namangaya¹

2019

OJBM

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Most of urban areas in Africa, including in Tanzania, are facing huge infrastructure gaps that require innovative financing mechanisms. Due to the rapid pace of urban development in Africa, land or property value capture could be one of the effective strategies for raising much-needed resources. The paper, using cases of two projects in the Dar es Salaam metropolitan area, examines how the preconditions of implementing land value capture instruments prevail in Tanzania. It evident from the analysis of the legal context and the projects, concerning the prevalence of supportive preconditions for applying value capture instruments, the laws and urban management practices are quite superfluous in their provisions and proposals such that they do not give the required force, although general mandates are there. Impliedly, the laws and practices were designed without a specific focus or outlook towards making applications of property value capture instruments possible. This is a critical area that requires intervention to improve the financing of urban development needs in Africa.

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Section: Data Sourcessupporting

confidence: 77%

“…With no services, plots in unplanned areas are cheaper than those in planned areas. For instance, Alananga [45], using data from 2010, established a price of 400 m 2 peri-urban plots to be T.Shs. 1,000,000 which is equivalent of US$1.85 per m 23 .…”

Section: Data Sourcesmentioning

confidence: 99%

Challenges in Administering Property Value Capture in Tanzanian Cities

Namangaya¹

2019

OJBM

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“…Due to this inherent challenges it is not surprising that authors such as Greene and Rojas (2008), Abdel-Kader and Ettouney (2011) and Bangdome-Dery, Eghan and Afram (2014) have linked this strategies to poor and low income households. However, there are substantial evidence contrary to the thought (Alananga, Lucian and Kusiluka, 2015;Nguluma, 2003;Limbumba, 2010;Adeyeni, Olayiwola and Oladehinde, 2016;Mitullah and Wachira, 2003). These authors found that incremental housing strategy was also used by middle and high income building both single and multi-storey residential and commercial buildings.…”

Section: Introductionmentioning

confidence: 81%

“…One of the major challenges is the dynamics through which the housing sector has evolved over the years. There are notable contributing factors to the dynamics and one such factor has been rapid rural-urban migration (Alananga, Lucian and Kusiluka, 2015;Mehta and Bridwell, 2004;Olotuah and Aiyetan, 2006). Lack of social, economic and physical infrastructure in rural areas has been cited as the main driving force for rural-urban migration (Mehta and Bridwell, 2004;Greene and Rojas, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…These authors found that incremental housing strategy was also used by middle and high income building both single and multi-storey residential and commercial buildings. In the context of Tanzania, a number of researchers have examined the nature of incremental housing approaches such as Nguluma (2003) who analysed incremental housing transformation, Sheuya (2007) who analysed financing mechanism for incremental housing, Alananga, Lucian and Kusiluka (2015) who examined cost-push factors in incremental housing and Alananga and Lucian (2016) who analysed factor proportion and its impact on incremental housing cost. Contrary to the rest of the world, studies on Tanzanian cities unanimously coincide that incremental owner built housing is not directly related to low income and low quality environment.…”

Section: Introductionmentioning

confidence: 99%

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Constraints Facing Incremental Housing Construction in Dar es Salaam, Tanzania

Mselle¹,

Alananga²

2018

JCDC

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The owner-built incremental housing strategy has been used for many years across the developing world. This study examines the implication of construction constraints and challenges on annual construction cost expenditure across housing types. Using descriptive statistics and correlation analysis for 43 incrementally built housing units implemented in Dar es Salaam between year 1993 and 2013, the study has observed that single and two-storey incremental housing builders face the same set of human related construction challenges and external cost-push factors but different administrative, physical and interest related constraints. Of all the cost-push factors examined, interest rate intervention is the only observed strategy that has far reaching potentials to single-storey low cost incremental builders because such builders are less likely to resort to loans as a mechanism to finance housing. These findings suggest that any other external efforts targeting physical or human related incremental construction constraints are likely to end up either benefiting the high quality builders or every incremental builder regardless of cost or property type or both. The study argues in favour of targeted interest rate support rather than physical or administrative housing assistance if owner-builders are to benefit specifically in any housing policy support.

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Key Concepts in Understanding Self-organization and the Self-organized City

Suhartini

Jones²

2023

The Urban Book Series

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Significant cost-push factors in owner-built incremental housing construction in Tanzania

Cited by 12 publications

References 25 publications

Challenges in Administering Property Value Capture in Tanzanian Cities

Challenges in Administering Property Value Capture in Tanzanian Cities

Constraints Facing Incremental Housing Construction in Dar es Salaam, Tanzania

Key Concepts in Understanding Self-organization and the Self-organized City

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