Tanzania’s real estate sector experienced a growth rate of 4.3% in 2024, contributing 2.7% to the national income, according to the Economic Growth Report released by the National Bureau of Statistics in January 2025. In relation to land investment, as of 15 May 2025, the Ministry of Lands, Housing and Human Settlements Development (the Ministry) had received 235 applications for investment land, covering a total requested area of 32,143.29 hectares. These applications included 92 from Tanzanian citizens and 143 from foreign investors, with the latter proposing investments valued at USD 617.76 million (TZS 1.63 trillion). In terms of approvals, for the past four years, a total of 719 applications were granted, encompassing 205,057.48 hectares of land. Of these, 258 approvals were issued to Tanzanian citizens, while 461 were granted to foreign investors. These figures reflect the growing interest in Tanzania’s real estate sector, both domestically and internationally.
In a significant move to modernize and energize the real estate sector, the Government of Tanzania (the GoT), through the Ministry, outlined a comprehensive reform agenda in its 2025/26 Budget Speech delivered on 29 May 2025. A budget of TZS 164,146,052,000 was approved by Parliament to support strategic initiatives, including the finalization of proposals for enacting the Real Estate Act; completion of regulations and guidelines for real estate development; provision of public education on real estate matters; and the updating of the national database of real estate agents and developers.
At the core of these reforms is the GoT’s commitment to creating a more structured, transparent, and investor-friendly environment. The proposed Real Estate Act is expected to serve as a cornerstone for a well-regulated property market, ensuring the protection of landowners, investors, and tenants alike. The Act will also pave the way for the creation of a Real Estate Regulatory Authority (RERA), which will oversee sector governance, professional standards, and market integrity.
The Ministry emphasized that these reforms are part of a broader strategy to enhance land governance, improve land use planning and titling, and eliminate inefficiencies caused by institutional overlaps and limited resources. Stakeholders in the real estate sector are being encouraged to register themselves with the GoT to ensure compliance and support the sector’s sustainable development.
Taking some steps back
The Tanzanian National Land Policy of 1995 did not include provisions for the real estate sector. Over time, however, the sector has grown significantly, with increased transactions and contributions to government revenue. Despite this growth, there is still no formal policy or legal framework in place to regulate real estate activities. Additionally, there is a substantial demand for affordable housing, with an estimated annual housing deficit of approximately 390,981 units. This challenge is further compounded by limited financial resources among individuals, private companies, and public institutions, which hinders the availability of housing that meets public needs and planning standards. On page 69 of the 2023 Revised National Land Policy, the GoT committed to establishing a framework to oversee, develop, and regulate the real estate sector. The revised policy identifies the creation of a legal framework for regulating real estate and land brokerage as a key GoT priority.
Current position
Over the past four years, the Ministry has established and strengthened the Real Estate Unit to effectively oversee the real estate sector. Achievements include the completion of a proposal for the drafting of the Real Estate Act; provision of professional advice to various stakeholders in the sector; public education through six (6) stakeholder meetings and various national exhibitions; and coordination of the establishment of real estate agents’ associations in three (3) regions. Additionally, the Ministry has participated in five (5) regional and international meetings aimed at promoting investment opportunities available in the real estate sector in the country.
The proposals for drafting the Real Estate Act have been prepared and submitted to the relevant decision-making authorities. These proposals aim to establish the RERA, which, among other responsibilities, will be tasked with creating a robust regulatory framework for the real estate sector; overseeing professionals and stakeholders in the sector; providing accurate information on stakeholders and the real estate market; enhancing the efficiency of sector professionals; and combating financial crimes such as money laundering, terrorist financing, and the financing of weapons of mass destruction.
To complement real estate reforms, the GoT has also made strides in land management and housing finance. As of May 2025, the Ministry had digitized land records for over 957,000 landowners through the TEHAMA System. This digitization effort, which includes cross-verifying data with NIDA and BRELA, is set to continue in 2025/26 with an additional 500,000 records to be digitized under the e-Land System.
On the housing front, access to construction loans has improved significantly. The number of commercial banks offering housing loans has grown to 31, disbursing a total of TZS 659.3 billion. Thanks to support from the Tanzania Mortgage Refinance Company (TMRC), mortgage interest rates have dropped from 21%–24% to a more manageable 15%–19%, making home ownership more accessible to Tanzanians.
A ‘Business as Usual’ Type of Regulator?
Lately, we have seen the GoT make decisions to either remove or merge several regulatory authorities with overlapping mandates. According to the Budget Speech delivered by the Ministry of the President’s Office – Planning and Investment on 24 April 2025, the GoT has taken steps to streamline regulatory functions. For example, the responsibility for issuing permits to transport chemicals, previously shared among the Tanzania Medicines and Medical Devices Authority (TMDA), the Tanzania National Roads Agency (TANROADS), and the Government Chemist Laboratory Authority (GCLA), is now solely handled by GCLA.
Similarly, the overlap between the Tropical Pesticides Research Institute (TPRI) and the Plant Health Services Division has been eliminated. The overlapping responsibilities between the Tanzania Bureau of Standards (TBS) and the Meat Board regarding the registration, sale, and storage of meat have also been resolved. Additionally, the mandate for setting national fuel quality standards is now exclusively held by TBS, instead of being shared with the Energy and Water Utilities Regulatory Authority (EWURA).
Before the introduction of the proposed RERA, the following critical questions should be considered:
- Do we truly need a dedicated agency to monitor the real estate sub-sector?
- Is the current institutional framework insufficient to regulate the real estate sub-sector?
- Will the mandates of existing institutions overlap with those of RERA?
- To what extent should RERA be independent?
Only once these questions are properly addressed can we say that we are ready to integrate RERA into the institutional framework governing land investments. Failing this, RERA may introduce yet another layer of complexity.
When the time comes for public consultation, it will be essential to conduct wide-ranging stakeholder engagement to ensure that previous pitfalls are not repeated with respect to RERA. Let us aim to avoid a situation where one law is subject to numerous amendments within a short period, at least in the case of the forthcoming Real Estate Act.
Conclusion
Going forward, the establishment of regulatory bodies or authorities should carefully consider their intended roles and responsibilities. These institutions should not function solely as licensing authorities with the power to grant or revoke permits, an approach that could inadvertently increase the cost of doing business in Tanzania. Instead, they should also be empowered to actively facilitate investment and promote a conducive business environment.
Read more analysis by Amiri Sharifu
