Tanzania is on the verge of a transformative shift in its real estate sector as the Ministry of Lands, Housing, and Human Settlements Development moves forward with a long-awaited legal reform.
The new law, designed to bring structure, fairness, and transparency to the fast-growing industry, is now in its final stages, with government approval expected soon.
For years, Tanzania’s real estate market has operated with minimal oversight, creating a landscape where overpricing, fraudulent practices, and limited data have made transactions unpredictable. The new law aims to change that by establishing a clear regulatory framework that benefits all stakeholders, from buyers and developers to investors and policymakers. With an annual housing demand of 200,000 units and an overall deficit of 3 million homes, the urgency for reform has never been greater.
Upendo Matotola, Director of Real Estate at the Ministry, emphasized the necessity of these changes. She explained that a structured approach is essential to ensure that both local and foreign investors can engage in the market with confidence. A major focus of the reform is pricing transparency, a crucial step in preventing artificial inflation and market instability. Matotola pointed out that an efficient regulatory system would provide accurate data on property values, ensuring that buyers and sellers operate within a fair and predictable system.
Recognizing the need for modernization, the government has also been working on digitizing property records, a move expected to enhance accessibility and reduce corruption. The introduction of digital platforms will give the public direct access to verified property information, allowing them to make informed decisions without falling victim to misinformation or fraud.
Industry leaders have expressed strong support for the reforms. Fred Msemwa, CEO of Watumishi Housing Investment, described the legal changes as overdue and necessary for sustainable growth. He stressed that while the sector has expanded rapidly, it has lacked the structure needed to ensure long-term stability. However, he suggested that instead of focusing solely on regulation, the government should consider forming a development authority that would actively promote growth and investment in the sector.
Hamad Abdallah, Director General of the National Housing Corporation (NHC), echoed similar sentiments, emphasizing that without proper governance, the industry cannot reach its full potential. He noted that clear laws will not only protect investors but also improve the quality of housing projects and encourage responsible development.
The absence of strong regulations has long allowed loopholes that some industry players have exploited, leading to a loss of trust among consumers and investors. Matotola acknowledged that unscrupulous practices have thrived in this environment, reinforcing the need for a legal framework that safeguards the interests of all participants.
As Tanzania finalizes this major reform, expectations are high that the new law will usher in a more stable, transparent, and investor-friendly real estate market. By addressing long-standing issues and implementing digital solutions, the country is positioning itself as a regional leader in structured property development. If executed effectively, these changes could unlock new opportunities for economic growth while ensuring that homeownership remains accessible and fair for all Tanzanians.
