Tanzania is close to finalizing a new real estate law to regulate the sector, address a housing shortage of 3 million units, and improve market transparency. The Ministry plans to create a regulatory body and has engaged various stakeholders to develop the law. The initiative aims to provide accurate data, regulate pricing, and protect all parties involved in real estate transactions.
Tanzania is progressing towards finalizing its real estate law, with the Ministry of Lands, Housing and Human Settlements Development actively engaging stakeholders in this review process. The law aims to regulate and promote the real estate sector in a manner that safeguards all participants, ensuring market stability and transparency.
The real estate market in Tanzania is experiencing substantial growth, with an annual housing demand of around 200,000 units and a total deficit of 3 million housing units. The review of the law is vital for creating accurate sector data that will help regulate pricing and reduce instances of overpricing, enhancing the economic contributions of the industry.
Director of Real Estate, Ms. Upendo Matotola, indicated that the new law will facilitate the establishment of a regulatory body to oversee the sector effectively. As the land policy draft nears completion, the Ministry will seek Cabinet and Parliamentary approval to initiate the legal framework for the real estate industry.
In 2024, Ms. Matotola noted that the new law was prompted by the rapid growth of the sector, which reflects the improving Tanzanian economy and increasing foreign investments. The government is also revising the 1995 land policy to simplify complexities in the booming real estate market.
Research conducted by the Ministry has highlighted regulatory needs and potential impacts of the proposed law, addressing challenges like the proliferation of substandard properties. “Real estate is about information. Investors need accurate data to make informed decisions and avoid risky investments,” stated Matotola, emphasizing the importance of enhanced transparency in the industry.
To strengthen regulation, the government established a Real Estate Unit within the Ministry in July 2022 to coordinate efforts, ensure transparency, and bolster government revenue. Initiatives, including stakeholder meetings, have been held to discuss critical industry issues.
Industry stakeholders have generally welcomed the impending changes. Mr. Fred Msemwa, CEO of Watumishi Housing Investment, remarked that the introduction of regulatory measures is overdue, stating: “For development to happen in the sector, there should be regulations to oversee what is happening.” The need for a governing body was reiterated by Mr. Hamad Abdallah, Director General of the National Housing Corporation, highlighting the necessity for clear guidelines in the sector.
In summary, Tanzania is nearing the completion of an important real estate law aimed at creating a regulated and transparent market. The government’s efforts are driven by the need to address significant housing shortages and challenges within the sector. Stakeholders have expressed a strong desire for regulation, affirming that it is essential for sustained growth and investment in real estate.
Original Source: www.thecitizen.co.tz
