Tanzania’s real estate sector continued to recover from the pandemic-induced challenges in 2022

Tanzania’s real estate sector continued to recover from the pandemic-induced challenges last year with commercial property occupancy rate increasing, reflecting the recovery of businesses from the pandemic.

According to the Financial Stability Report released by the Bank of Tanzania (BoT) this week, most of the selected commercial properties had an occupancy rate of more than 50 percent, indicating stability in the real estate market.

“Some commercial property occupancy remained below 50 percent as the sector is yet to recover fully from the pandemic, but also due to relocation of Government offices to Dodoma,” the report said.

The Central Bank report shows residential rental and sale prices picked up in prime and subprime locations with the annual rental prices for prime and sub-prime locations in Dar es Salaam continued to recover, reflecting the recovery of businesses, a pick-up in investment, as well as an increase in tenants’ incomes.

Similarly, the sale prices of residential properties slightly increased in 2022, following the improvement in business conditions, investment, employment and household income.

 The projected rebound in economic activities is expected to continue to boost the recovery of the property market. The stability in the real estate market is likely to minimize risks to financial stability given the significant links between property and credit markets.