Tanzania’s property market is expanding more quickly

According to estimates, an aggregate of three million homes is needed in Tanzania to accommodate the estimated 60 million people who live there, which is why the country’s real estate market is expanding more quickly.

However, according to recent data, the industry has only been constructing 1,153 new homes annually over the past 12 years, which irritates Minister of Lands, Housing, and Urban Regeneration Development Angelina Mabula. “Among stakeholders, the change has yet to be fully utilised. At a recent stakeholder conference, she said, “This forum must come with the direction as the government wants to provide all necessary support for the sector’s growth.” The government is examining the legal frameworks controlling the industry, according to the head of real estate for the docket, Ms Lucy Kabyemera, to address the difficulties facing rental properties in the nation.

“We are gathering feedback from stakeholders to ensure the process is effective. The National Housing Corporation (NHC) Act, Cap. 295 would be reviewed, she stated. However, Yohana Mtemi, a property investment analyst, advised NHC to demolish existing structures, construct new ones, and renovate existing ones spread across the nation to keep up with worldwide changes.

Instead of letting the remains exist as urban ruins, he suggested that certain homes are renovated, and their usage changed to suit the needs. Ms Sophia Mtaki, a shareholder from Watumishi Property Prices (WHI), urged the government to strengthen communication between Central and Municipal Govt Authorities and cut down on red tape while providing housing paperwork and titling deeds (LGAs).

Aside from paying for the records, residents are told that data presented at the government level is not present at the LGA level, which frustrates them, she claimed. However, the client’s failure to provide all the necessary documentation, according to deputy title records registrar Ms Joanitha Kazinju, is to blame for the difficulties in providing legal title and occupancy documents. Another issue is a need for more expertise and land registry systems.

However, registering properties “aims to ensure that land is planned, surveyed, and the property is legally recognised,” she said. However, the Financial institution of Tanzania (BoT) Act limits the availability of mortgage loans to builders with Debt Service Ratios (DSR) above 40%, as opposed to 66.6 per cent of total loans for standard loans, according to Ms Pauline Sangale of NMB Bank Plc. She argued that the Central Bank should offer an equivalent ratio to stimulate competition, arguing that “this is unjust because conventional loans are unstable as opposed to mortgage loans.” Nevertheless, according to Mr Mchechu, he is aware of the prospects in the industry. He is now constructing 400 flats in Dar es Salaam, which will be accompanied by 5,000 homes in various regions of the nation. A single apartment is anticipated to have three bedrooms and can be partitioned into two separate rooms and a single room.

The 400 units will be constructed in 10 blocks. According to him, the price will fall between Sh150 million, Sh90 million, and Sh46 million.