Tanzania faces acute housing shortage

TANZANIA is facing a shortage of three million quality residential houses while the pace of supplying new units is on the lower side.

The situation compelled the government to challenge the private sector to tap the potential since banks are ready to provide loans.

The Minister for Land, Housing and Settlement Development, Dr Angelina Mabula, said that it was high time for investors to tap the potential and construct quality residential housing.

“Statistics shows that in the past 12 years, only 13,837 houses were built which is an average of 1,153 new buildings every year. It is high time for real estate developers to come up and tap this potential,” Dr Mabula said when launching real estate agent stakeholders meeting in Dar es Salaam on Thursday.

The Minister hailed NMB Bank for being at the forefront of issuing loans for residential building construction, while CRDB and TCB (Tanzania Commercial Bank) are also lending to the sector.

“Currently 33 financial institutions are dealing with mortgage business…therefore unify your force and tap this potentiality,” Dr Mabula said

The minister also insisted that the government’s zeal was to assure that citizens have access to loans from different financial institutions to curb the deficit of residential houses.

The government, according to Dr Mabula, is creating enabling policies that will guide the development of the property sector in the country to let Tanzanians have better housing.

Earlier, the Permanent Secretary of the Ministry of Land, Housing and Settlement Development, Dr Allan Kijazi, said that the Ministry intends to make policy to ensure that they meet the needs intended by the real estate sector in the country in a bid to eliminate rising challenges in the sector.

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