Residential Real Estate - Tanzania

The Residential Real Estate market market in Tanzania is projected to reach a value of US$637.40bn in 2024.
This market segment is expected to show an annual growth rate (CAGR 2024-2029) of 6.79%, resulting in a market volume of US$885.20bn by 2029.
In global comparison, China is expected to generate the highest value in the Real Estate market, with US$112.9tn in 2024.
Tanzania's residential real estate market is experiencing a surge in demand due to its growing economy and increasing urbanization.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Tanzania is experiencing significant growth and development.

Customer preferences: Customers in Tanzania are increasingly looking for modern and well-designed residential properties. They are seeking properties that offer amenities such as swimming pools, gyms, and gardens. Additionally, customers are placing a high value on properties that are located in safe and secure neighborhoods, with easy access to schools, hospitals, and shopping centers.

Trends in the market: One of the key trends in the residential real estate market in Tanzania is the increasing demand for affordable housing. With a growing population and urbanization, there is a need for more housing options at affordable prices. Developers are responding to this trend by constructing more affordable housing units, particularly in the outskirts of major cities. Another trend in the market is the rise of mixed-use developments. These developments combine residential, commercial, and retail spaces in one complex, providing residents with convenient access to various amenities. This trend is driven by the desire for a more integrated and convenient lifestyle, where residents can live, work, and shop in the same area.

Local special circumstances: Tanzania has a young and growing population, with a large proportion of the population under the age of 35. This demographic trend is driving the demand for residential real estate, as young people are entering the workforce and looking to buy or rent their own homes. Additionally, the government of Tanzania has implemented various policies and initiatives to promote affordable housing and homeownership, further fueling the demand in the market.

Underlying macroeconomic factors: The growth in the residential real estate market in Tanzania is supported by several macroeconomic factors. The country has experienced steady economic growth in recent years, with a stable political environment and increasing foreign direct investment. This has led to a rise in disposable incomes and improved access to financing, making it easier for individuals to purchase or invest in residential properties. Furthermore, the government has implemented reforms to improve the ease of doing business in Tanzania, attracting more developers and investors to the market. In conclusion, the residential real estate market in Tanzania is experiencing growth and development due to customer preferences for modern and well-designed properties, the demand for affordable housing, and the rise of mixed-use developments. The young and growing population, along with government policies and favorable macroeconomic factors, are driving the demand in the market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are 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 - Tanzania

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

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