The Tanzanian mortgage market recorded an overall growth rate of 13% in January-September 2016.
Alternative building materials are being explored as a way to deliver these houses on a rapid scale, according to the Centre for Affordable Housing Finance in Africa (CAHF).
The Tanzanian housing demand has been boosted by easier access to mortgages, with the number of mortgage lenders in the market increasing from 3 in 2009 to 21 in 2015.
The average mortgage interest rate in Tanzania fell from 22% to 16% during the same period.
Tanzania Housing Rentals
Tanzania property rentals are higher than those found in Kenya’s capital, Nairobi for example where a one-bedroom apartment in the city center can be rented at around USD444.5 a month while in Dar es Salaam it is at an average of USD775.3 a month.
Out of the Dar es Salaam city center, to rent a one-bedroom apartment can cost up to USD514.34 a month.
Tanzania Housing Prices
Housing price per square meter averages USD1,200 in Dar Es Salaam versus USD1,235 in Nairobi according to Numbeo, an online source of statistics on quality life topics by cities and countries.
Out of the Dar es Salaam city center, the average cost per square meter is USD608.17.
The Tanzania Public Servants Housing Scheme (PSHS) aims at constructing 50,000 housing units for government workers in 5 phases.
At the end of 2015, Watumishi Housing Company (WHC), a state run property developer and real estate investment trust (REIT) manager in Tanzania, launched Phase I of the project.
According to WHC, this is one of the major projects undertook by Tanzania’s government to ease the public servants’ housing shortage with only 10,000 out of 650,000 workers provided with residential accommodation through mortgages or any other house purchase scheme.
This is why WHC has signed cooperation agreements with CRDB Bank, Azania Bank, NMB, Bank of Africa, and Exim Bank.
Those will provide the government workers with mortgages which can be repaid in periods up to 25 years and at low rates between 11% and 13% per annum, compared to current mortgage rates of 16–19%.
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