Real Estate - Tanzania | Statista Market Forecast

The Real Estate market market in Tanzania is expected to reach a value of US$696.60bn by 2024.
Among the various segments, Residential Real Estate dominates the market with a projected market volume of US$637.40bn in the same year.
This segment is expected to grow at an annual growth rate of 6.75% (CAGR 2024-2029), resulting in a market volume of US$965.80bn by 2029.
When compared globally, it is worth noting that United States is expected to generate the highest value in the Real Estate market market, with a projected value of US$132.0tn in 2024.
Tanzania's real estate market is experiencing a surge in demand for luxury beachfront properties due to its stunning coastline and growing tourism industry.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are 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 real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

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

Tanzania, a country located in East Africa, has been experiencing significant development and growth in its real estate market. Customer preferences in the Tanzanian real estate market have been shaped by several factors. One key preference is the increasing demand for affordable housing. With a growing population and urbanization, there is a need for housing options that cater to the middle and lower-income segments of the population. Additionally, there is a preference for properties that offer modern amenities and infrastructure, such as gated communities with security features and access to basic services like water and electricity. Trends in the Tanzanian real estate market reflect these customer preferences. There has been a rise in the construction of affordable housing projects, both by the government and private developers. These projects aim to provide decent and affordable housing options to a larger segment of the population. In addition, there has been an increase in the development of mixed-use properties, which combine residential, commercial, and retail spaces in one location. This trend caters to the demand for convenience and accessibility, as people seek to live, work, and shop in close proximity. Local special circumstances also contribute to the development of the real estate market in Tanzania. One such circumstance is the government's focus on infrastructure development. The government has been investing in improving transportation networks, including roads and airports, which has led to increased connectivity and accessibility to different regions. This has not only opened up new areas for real estate development but has also attracted both local and foreign investors. Underlying macroeconomic factors have also played a role in the growth of the Tanzanian real estate market. The country has experienced stable economic growth in recent years, driven by sectors such as agriculture, mining, and tourism. This has created a favorable environment for real estate investment, as investors see the potential for returns on their investments. Additionally, the government has implemented policies and reforms to attract foreign direct investment, which has further stimulated the real estate market. In conclusion, the Tanzanian real estate market is developing in response to customer preferences for affordable housing and modern amenities. The trends in the market include the construction of affordable housing projects and the development of mixed-use properties. Local special circumstances, such as infrastructure development, and underlying macroeconomic factors, including stable economic growth and government policies, have also contributed to the growth of the market.

Data coverage:

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

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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:

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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Real Estate - Tanzania

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Volume

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