Credits to building and construction increased to four months high at 20.7 percent during the year ended in May 2024, compared to 14.4 percent, which indicates increased property market activities.

Builders say the increased construction and building activities resulted from strong economic growth, improved business environment and the end of rain season, which caused the stuck of various construction projects for both public and private projects.

The Bank of Tanzania (BoT) and banks data show that the highest credit growth was reported on agriculture with 55.7 percent, followed by Manufacturing with 29.4 percent while credits to building and construction has the third highest growth rate.

However, the central bank report shows the share of outstanding credits to building and construction to selected economic activities remained flat at 4.3 percent. The highest shares of between 4.5 percent and 4.7 percent were recorded between June and December, 2023.

Data by the National Bureau of Statistics (NBS) show that during the fourth quarter of last year, the real estate sector activity, which involves selling or buying of properties, building, renting, providing real estate services by 4.3 percent in the fourth quarter 2023, compared to 4.4 percent observed in the corresponding quarter in 2022. 

The growth was attributed to an increase in demand for accommodation especially in urban areas.

The NBS shows the construction activity recorded a growth rate of 2.7 percent in the fourth quarter 2023 compared to 2.5 percent in the corresponding quarter in 2022. 

The growth was attributed to an increase in local production of construction materials including iron and steels which are proxies for construction activities.

The construction industry in Tanzania is expected to grow by 5.8 percent in real terms in 2024, supported by investments in the industrial, infrastructure and energy sectors. According to the Tanzania Investment Centre (TIC),

According to TIC, 161 projects worth 3.6trn/- ($1.4 billion) were registered in the fourth quarter of 2023, marking a year-on-year (YoY) growth of 54 percent compared to a registration of 235 projects in 2022. 

In Q4 2024, manufacturing, transportation and tourism were the top three sectors in terms of registered number of projects. 

Of the total projects registered in Q4 2024, the domestic investments in the country accounted for 49.7 percent and foreign direct investments (FDIs) accounted for 50.3 percent.

The Tanzanian construction industry is expected to register an average annual growth of 7.9 pecent between 2025 and 2028, supported by investments in transport infrastructure, coupled with the 35.1trn/- ($13.5 billion) Tanzania Water Investment Program (TanWIP) that aims to strengthen the clean drinking water infrastructure by developing water supply schemes and a national grid by 2030.

Dar es Salaam, which is the country's primary commercial hub, is undergoing a thorough revamp of its road infrastructure, encompassing the construction of flyovers, a bus rapid transit system, and upgraded roads.

In February 2024, the government signed a 1trn/- ($385.5 billion) agreement to support development of second phase of the Dar es Salaam Metropolitan Development Project (DMDP), aimed at transforming the city's road network development in Dar Es Salaam.

The Residential Real Estate market in Tanzania is projected to reach a value of US$0.59tn in 2024. 

This market segment is expected to show an annual growth rate (CAGR 2024-2028) of 4.74 percent, resulting in a market volume of US$0.71tn by 2028.

Tanzania Real Estate market is experiencing a surge in demand for various investments opportunities, tourist attractions like national parks and luxury beachfront due to its stunning coastline and growing economy and tourism industry in general.

The rise of urbanization in both Tanzania mainland and Zanzibar is also continuing to stimulate investment in real estate.