Housing Finance in Tanzania


Tanzania has a growing housing finance sector. The country is one of the fastest growing countries on the African continent, and is rich in natural resources. At least 31.6 percent of the country’s 50.14 million people live in urban areas, with a population growth rate of almost three percent and urbanisation rate of 5.36 percent per annum. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The housing demand has also been boosted by easier access to mortgages, with the number of mortgage lenders in the market increasing from three in 2009 to 30 by June 2017, and the average mortgage interest rate falling from 19 percent to 16 percent. There are currently 4 065 mortgages in the country, with the average mortgage size being US$ 41 952. The cheapest newly built house by a developer recorded by CAHF is US$ 19 801, which is for a 52 square metre unit. Cement prices are lower than the continental average, at US$ 5.93 for a 50-kilogram bag.

With an urbanisation rate of 5.39 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. In 2015, the National Housing Corporation reported US$ 400 million worth of on-going real estate projects expected to reach US$ 800 million by 2020. Watumishi Housing Company currently has a project of 800 units. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Tanzania can afford.

Find out more information on the housing finance sector of Tanzania, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2017 edition, which has up-to-date profiles for 54 African countries.

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