Residential Real Estate Leases - Tanzania

The Residential Real Estate Leases market market in Tanzania is projected to generate a revenue of US$19.29bn by 2024.
House Leases dominate this market segment with a projected market volume of US$13.45bn in 2024.
It is expected that the revenue will experience an annual growth rate (CAGR 2024-2029) of 12.20%, leading to a market volume of US$34.31bn by 2029.
Tanzania's residential real estate market is experiencing a surge in demand due to increasing urbanization and foreign investment.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Tanzania is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trajectory. Customer preferences in the Residential Real Estate Leases market in Tanzania are shifting towards modern and well-equipped properties. Tanzanian consumers are increasingly looking for houses and apartments that offer amenities such as security systems, parking spaces, and access to recreational facilities. This change in preference can be attributed to the rising middle class in Tanzania, who have higher disposable incomes and are willing to pay for quality and convenience. Trends in the market indicate a growing demand for rental properties in urban areas. Tanzania is experiencing rapid urbanization, with more people moving to cities in search of employment and better opportunities. This influx of people has led to an increased demand for rental properties, especially in major cities like Dar es Salaam and Arusha. Landlords and real estate developers are capitalizing on this trend by constructing and renovating residential properties to cater to the growing demand. Local special circumstances also contribute to the development of the Residential Real Estate Leases market in Tanzania. The government has implemented policies and initiatives to promote affordable housing and homeownership. This includes the establishment of the National Housing Corporation, which provides affordable housing solutions to low and middle-income earners. Additionally, the government has introduced tax incentives and streamlined the process of acquiring property titles, making it easier for individuals to invest in real estate. Underlying macroeconomic factors are also playing a role in the growth of the Residential Real Estate Leases market in Tanzania. The country's stable economic growth and low inflation rate have created a favorable environment for real estate investment. Foreign direct investment in the real estate sector has also increased, with international companies recognizing the potential of the Tanzanian market. These factors have contributed to the overall positive outlook for the Residential Real Estate Leases market in Tanzania. In conclusion, the Residential Real Estate Leases market in Tanzania is experiencing significant growth and development due to changing customer preferences, urbanization trends, local special circumstances, and underlying macroeconomic factors. As the country continues to progress economically and socially, the demand for rental properties is expected to increase further, creating opportunities for investors and developers in the real estate sector.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Tanzania

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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