Some of the key highlights from this included: a marginal decline in the mortgage market in the second quarter compared to the first quarter of 2018, albeit in an environment marked by increased opportunities in real-estate for local and foreign investors, Tanzania’s macro-economic environment in 2017-8 was marked by a growth in GDP from 7.0 percent in 2016 to 7.1 percent in 2017. This growth was as a result of investments and improvements in infrastructure, power supply stability and favourable weather conditions.
Some of the key opportunities and initiatives intended to boost the mortgage market in the country included ongoing housing developments by the National Housing Corporation (NHC) and other developers. The Mortgage Market report highlighted a number of key projects by the NHC, the Watumishi Housing Company (WHC) and other private developers which are bound to increase the housing stock in the country and as a result, the performance of the mortgage market.
The update also recognized the key role played by the TMRC’s availing of long-term funding through financing and pre-financing. The presence of the TMRC has enabled an increase in the number of mortgage lenders in the country, an extension in the mortgage repayment period, and a reduction of interest rates in the country.
As of June 2018, there were 31 banks offering mortgage loans. With outstanding mortgage debt standing at TZS 331.49 billion (US$ 145 million). The Average mortgage debt size was TZS 81.62 million (US$ 35,704); with the mortgage to GDP ratio at 0.33 percent as at 31 March 2018).
Click on the button below to access the June 2018 Mortgage Market Update.