The Tanzanian real estate sector has been growing sensibly in the recent years accompanied by a strong and sustained economic growth averaging 7%, a fast growing population of 50 million and efforts by the Government, in partnership with global non-profit institutions and foreign governments, to meet the growing demand of affordable housing.
The Tanzanian housing sector’s fast-growing demand is mainly driven by the fast-growing Tanzanian population which is estimates to be 53.47 million and that is expected to more than double by 2050.
The Tanzanian housing demand has also 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 and the average mortgage interest rate in Tanzania falling from 22% to 16%.
The current demand for housing in Tanzania is estimated at 200,000 houses annually, and a total housing shortage of 3 million houses, as explained Nehemiah Kyando Mchechu, Director General of Tanzania’s National Housing Corporation (NHC), the Government’s company established to undertake an array of business in real estate.
Dar es Salaam, Tanzania’s commercial capital and Africa’s fastest growing city, has a current population of about 4.3 million which is expected to quintuple to about 20 million by 2050.
Housing price per square metre averages USD 1,200 in Dar Es Salaam versus USD 1,235 in Nairobi while the rent of one-bedroom apartment in the city center is around USD 775.3 a month in Dar es Salaam versus USD 444.5 a month in Nairobi.
The concept of absolute ownership of land is not recognized in Tanzania, where people have however the right to use and occupy the land in accordance with the approved use.
Foreign companies and individuals wishing to have rights to occupy and use land can only do so by acquiring derivative rights, applying to the Tanzania Investment Centre (TIC) or to landowners who have been granted right of occupancy.
Table Of Contents:
Tanzania Housing Demand And Supply
Tanzania Housing Legal Framework And Taxation
Tanzania Housing Financing
Tanzania Housing Outlook And Investment Opportunities
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