Tanzanians are willing to buy houses at an average cost of TZS60m, preferably in areas out of Dar Es Salaam city centre, in Mbezi, Kigamboni and Mikocheni.
This was indicated in a recent survey on real estate in Tanzania conducted by Mikono Speakers International, a multisectoral consulting firm in Africa.
According to the survey, location is the most important factor to Tanzanians when searching for housing, followed by size of the house, cost, neighborhood and payment terms.
Out of the 430 respondents, 64% rented houses instead of owning them, at an average cost of TZS300,000.
Furthermore, out of the 64% renting population, 95% are planning to own a house in the future, however respondents point out that houses are too expensive to buy at the moment.
88% of those planning to own a house prefer to build it instead of buy it.
The demand for housing in Tanzania is estimated at 200,000 houses annually, which results in a current housing shortage of 3m houses.
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).