Tanzania’s Real Estate FDI on the Rise
By Rolex Owino
Spanish hotel chain, RIU Hotels & Resorts has expanded its portfolio in Tanzania, after acquiring a new hotel, an investment that is worth USD 56 Mn.
The hotel will be an addition to the already existing Riu Palace Zanzibar, which was purchased from the Emerald Hotel Chain.
It will be located on the main island of Zanzibar, at Nungwi beach area, and will be marketed as part of the RIU palace’s brand.
The hotel chain is also planning a third hotel in the Zanzibar and has thus far completed the acquisition of five hectares of land, meant for its construction.
This move reflects the chain’s rapid expansion into the African market. It also recently purchased a 25-hectare site within the Pointe Sarène area, on the west coast of Senegal – to build at least two new hotels.
The company has highly invested in the Indian Ocean area, boasting of various resorts in Mauritius and Sri Lanka. In total, it has 93 hotels in 19 countries. In Africa, it has five hotels in Cape Verde, two in Tanzania, and five in Morocco.
According to a report by the Global Property Guide, Tanzania is experiencing large scale investments and development in real estate projects for residential, industrial and commercial purposes.
In March 2018, the Zanzibar offshore property market was opened to foreigner investors, a strategic move that allows non-Tanzanian residents to invest in the Real Estate market.
Individual investors are also allowed to invest in the luxury property market through the acquisition of 99-year leases, with the option to extend ownership by 49 years.
Source: ASV & Weetracker.