Tanzania Construction & Real Estate Sector

The Tanzania construction and real estate sectors continue to be two very exciting and developing sectors in the Tanzanian economy.

The construction sector is currently experiencing a period of growth that has primarily been driven by the recent developments in roadwork, housing and mining.

The growth rate of the construction sector increased to 11.9% in 2005/06 from 10.8% in 2004/05 and the contribution of construction activity to the overall GDP rose to 5.7% in 2005/06, compared to a contribution of 5.4% in 2004/05.

Management of the construction sector falls under the Ministry of Infrastructure Development and is seen by the government as an important link to both economic and social development.

While the Tanzania real estate sector is not currently as highly developed as the construction sector, the developments within the construction sector have positively influenced and benefited the real estate sector through the creation of additional real estate space.

The Tanzanian real estate sector has not made significant contributions to the GDP over the last few years, but the government remains optimistic that the recent and planned developments will contribute to the continued growth of this sector.

The current real estate development projects that are under way, as well as those that are being developed, have created various opportunities for interested local and foreign investors.