The World Bank’s latest cities report, that cites land fragmentation and weak property rights as the sector’s biggest impediments in Africa ranked Tanzanian's capital Dar es Salaam, real estate ahead of Nairobi and Addis Ababa.The report, which was released Thursday 8th, estimates the economic value of Dar’s real estate at Sh1.2 trillion ahead of Nairobi’s Sh927 billion – a Sh273 billion gap.Ethiopian capital city Addis Ababa came third at Sh618 billion, while Kigali (Rwanda) is fourth at Sh.200 billion. Uganda and Burundi were not included in the study.The World Bank report, further, describes Dar Addis and Nairobi as having low economic/replacement values compared to cities with similar income levels.“The low economic value comes from the way land is organised reducing the scope to scale up investment in housing and commercial complexes,” Somik Lall of the World Bank said, adding that there is need to clarify property rights – “because, in many parts of Nairobi, land has not been utilised to its full potential.”The report further urges Nairobi and Dar to co-ordinate land and transport development in order to create value.Property development in Kenya has more recently been seen as a safe investment bet, making it a popular cash-generating option for investors.This is evidenced by the numerous giant cranes on the city’s commercial business districts such as Westlands and Upper Hill.Property experts yesterday acknowledged that office space charges are higher in Dar at an average of $22 per square metre compared to Nairobi’s $12 – $14.

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