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Tanzania closer to finalising real estate law
What you need to know:
- The government has engaged various stakeholders in the ongoing process of reviewing Tanzania’s real estate law
Dar es Salaam. The Ministry of Lands, Housing and Human Settlements Development has engaged various stakeholders in the ongoing process of reviewing Tanzania’s real estate law.
The Ministry’s Director of Real Estate, Ms Upendo Matotola, told The Citizen that the review is currently awaiting government approval after undergoing comprehensive scrutiny to ensure it aligns with the sector’s needs and does not have negative impacts.
“The primary objective of this review is to regulate, coordinate and promote the real estate sector, establishing a stable and transparent market that protects all stakeholders,” she said.
This comes at a time when available data show that Tanzania’s housing demand is estimated at 200,000 houses annually and a total housing shortage of 3 million houses.
According to Ms Matotola, Tanzania’s rapidly growing real estate market demands regulation to protect all parties involved.
The review will help the government to come up with accurate data and related information which will enable it to effectively regulate the sector in terms of clearer pricing, reducing overpricing and helping to accurately gauge the real estate industry’s economic contribution.
“Preparations are underway to enact the real estate law,” she added.
Once the land policy is finalised, the Ministry plans to seek approval from the Cabinet and Parliament to begin the legal process for the real estate industry. Ms Matotola also pointed out that the new law would lead to the creation of a regulatory body to oversee the sector.
Earlier, in 2024, MS Matotola shared that the decision to introduce the new law was driven by the rapid growth of the real estate sector, supported by a favourable business environment established by the government.
“This growth is clear evidence that our economy is improving and we are seeing increased investment, particularly from foreign investors.”
The government is also reviewing the 1995 land policy to address the complexities of the real estate market, which has expanded significantly in recent years.
Ms Matotola noted that the Ministry has conducted research to assess the need for the law and identify key areas requiring regulation. This research is vital for evaluating the potential costs and benefits of the proposed legal framework.
One of the major challenges in the sector is the lack of regulation, which has allowed substandard properties to flood the market.
“Real estate is about information. Investors need accurate data to make informed decisions and avoid risky investments,” Ms Matotola said, adding that improved data collection would enhance transparency in pricing, reduce overpricing and help assess the real economic contribution of the sector.
The government has taken steps to improve real estate regulation, such as establishing the Real Estate Unit within the Ministry in July 2022. This unit is tasked with coordinating and promoting the sector, ensuring transparency and boosting government revenue. The Ministry has also held Real Estate Stakeholders’ Meetings to address critical issues within the industry.
“We are working on digital platforms to ensure transparent and equal access to real estate information,” MS Matotola added.
Industry stakeholders have welcomed the proposed changes, with CEO of Watumishi Housing Investment (WHI), Mr Fred Msemwa, stating that the introduction of the real estate law was long overdue. “For development to happen in the sector, there should be regulations to oversee what is happening,” he said.
The Director General of the National Housing Corporation (NHC), Mr Hamad Abdallah, emphasised the need for a governing body for the sector.
“The contribution of real estate to the economy cannot be fully realised without a proper body to oversee the sector. Developers need clear guidelines and terms and conditions.”
