As reported by Construction Review, Tanzania, East Africa’s most populated country plans to build 200,000 affordable homes each year in bid to curb housing shortage in the country.
The country is currently having a number of major building projects with a total capital expenditure of US $40bn. The Tanzanian government has also introduced Mortgage for the public and each commercial Bank has been issuing mortgages for the past few years which aim is to deliver the 200,000 affordable homes each year.
Demand for housing in Tanzania
The demand for housing in Tanzania is estimated at 200,000 houses annually, which results in a current housing shortage of 3 million houses. Alternatively, building materials are being explored as a way to deliver these houses on a rapid scale; this is according to the Center for Affordable Housing Finance in Africa (CAHF).
Tanzania imports many of its construction materials to satisfy the high demand for construction locally, with the number of mortgage lenders in the market increasing from 3 in 2009 to 21 in 2015. The average mortgage interest rate in Tanzania fell from 22% to 16% during the same period.
According to Numbeo, an online source of statistics on quality life topics by cities and countries, Tanzania Housing Prices per square meter averages US $1,200 in Dar Es Salaam versus US $1,235 in Nairobi. Outside Dar es Salaam city center, the average cost per square meter is US $608.17.