REAL ESTATE MARKET BRIEF IN TANZANIA

In Tanzania, all land is publicly owned and vested in the President, meaning individuals and entities hold a right of occupancy or a leasehold rather than a freehold title. The real estate market includes residential, commercial, and land investments, with major activity concentrated in cities like Dar es Salaam, Dodoma, and Arusha, and the island of Zanzibar.

Investment opportunities by property type

• Residential properties: The market is seeing high demand for luxury beachfront properties, apartments, and affordable housing. Major residential development projects are located in upscale Dar es Salaam neighborhoods like Masaki and Oyster Bay.
• Commercial properties: Options include office space, warehouses, and hotel properties, particularly in prime commercial areas and tourism hotspots.
• Land and plots: Both surveyed and unsurveyed land are available in urban and developing areas, such as Tabata in Dar es Salaam, Makurunge in Bagamoyo, and Dodoma. The legal requirements for land acquisition differ for citizens and foreigners.

How foreigners can acquire property

Foreigners are prohibited from outright land ownership in Tanzania, but they can legally acquire property through several pathways:

• Derivative right of occupancy: Foreign investors can secure a derivative right of occupancy (effectively a long-term lease) for land designated for investment purposes. This requires registering an investment project with the Tanzania Investment Centre (TIC).
• Through a Tanzanian company: A foreigner can form a Tanzanian-registered company to hold land, though the company must be majority-owned (at least 51%) by Tanzanian citizens.
• Strata title apartments: Foreigners can purchase apartments or condominiums with a strata title, which grants individual ownership of the unit. The law permits foreign entities to own up to 70% of the units within a building.
• Residence permit class C-11: Introduced in 2024, this permit allows a foreigner to obtain residency by purchasing a house worth at least $100,000. It requires a recommendation from the TIC or the Zanzibar Investment Promotion Authority (ZIPA) and proof of purchase.