A Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University.
Government has taken different initiatives in addressing the issue of housing deficit in
Tanzania by establishing NHC and charged it with the responsibility of providing and
facilitating the provision of quality housing and other buildings for use by the general
public while operating on sound commercial principles. Despite the available market
demand for those houses the corporation still face some challenges in selling some of
its properties which were constructed mainly for sale.
The general objective of the study was to analyze factors affecting sales performance
of residential units, commercial and office space in government owned real estate
developers. The specific objectives of the study were to identify factors affecting sales
performance in NHC, to find out what challenges are facing clients who consider to
purchase properties from NHC or who have purchased properties from NHC and to
identify solutions of overcoming sales performance challenges faced by NHC.
The study reviewed different literatures relating to the sale and purchase decision of
residential and commercial buildings, the study used both qualitative and quantitative
techniques, whereby 100 questionnaires were distributed to NHC clients and interview
method were used to collect data from NHC staff both managerial staff and those who
are direct involving in sales of NHC properties, on the other side mortgage champions
from six NHC financial partners were contacted.
The findings from this study reveals that many clients failed to buy NHC properties due
to high price, second the interest rate charged on mortgage loans is very high and on the
other hand NHC housing designs on some of its projects does not meet the preferences
and taste desired by the clients.
The respondents recommended on the future NHC projects to consider what is preferred
by clients in terms of house size, number of bedrooms, plot size and the range of price
that most of clients will be able to pay for. Standalone houses are more preferred than
the semidetached houses which were in many places developed by the corporation.