WITH a projected value of 1.5 billion US dollars as of 2019 compared to USD 1.2 billion in 2015 and contributing 3.1 percent to the country’s real GDP, Tanzania’s real estate sector is on a roll.
According to data from Statista, the real estate market in the country is expected to reach a value of 696.60 billion US dollars by the end of the year (2024).
The market is also experiencing a surge in demand for luxury beachfront properties due to its stunning coastline and growing tourism industry.
It is also safe to note that there is an influx of foreign direct investment (FDI) into Tanzania's real estate sector which has helped inject additional capital and expertise, further fueling growth and innovation within the industry.
Not to be left out and riding on that background, Coldwell Banker Real Estate LLC, has launched a new master franchise, Coldwell Banker Tanzania and Zanzibar, to expand its international brand’s network.
The company’s Chief Executive Officer (CEO), Gina Washington, said during the launch that they intend to bring the brand’s global real estate expertise to one of East Africa’s most dynamic property markets.
“With rapid urbanization and economic growth fueling demand for high-quality real estate services, this master franchise is positioned to provide both local and international clients with unparalleled guidance and support in navigating Tanzania and Zanzibar’s flourishing property landscape,” she said.
Operating from Mizizini in Zanzibar, the company has introduced its first residential and commercial divisions—Coldwell Banker Islemark Realty for residential brokerage and Coldwell Banker Commercial Blueridge for commercial real estate—to provide dedicated support to homeowners, investors, and businesses throughout the island.
“We have plans to expand into additional locations across the country, bringing century-long legacy of integrity and excellence to East Africa, fostering trusted relationships and delivering high-quality real estate services tailored to meet the diverse needs of a dynamic market,” she added.
She noted that the company is dedicated to sustainable development and green building practices, ensuring long-term value for clients and communities.
“Our presence here reflects Tanzania and Zanzibar’s dynamic potential. With an unwavering commitment to integrity and innovation, we’re here to build strong local relationships and foster positive growth in the real estate sector,” she noted.
As government initiatives in Zanzibar continue to attract foreign direct investment and the tourism sector flourishes, there is a growing demand for retail, hospitality and residential projects.
The brand offers comprehensive services designed to help support these needs, including investment strategies, project development and tenant representation.
Additionally, the brand’s residential services through the Coldwell Banker Global Luxury program will help cater to the increased desire for high-end housing, luxury rentals and residential investment opportunities.
“The real estate industry in Tanzania and Zanzibar is experiencing extraordinary growth, and I am confident that this is the perfect moment for us to bring the brand’s renowned expertise to the region. With both residential and commercial services, our trusted network and unparalleled expertise will redefine how real estate is approached here,” she said.
Jason Waugh, President of Coldwell Banker Affiliates, said in a statement that they are thrilled to join the market which offers incredible opportunities and vowed to deliver the exceptional service and expertise for which the brand is known worldwide.
Since 1906, the brand has built a global reputation as a trusted leader in real estate, with a network of over 3,000 offices in nearly 50 countries. Known for pioneering client-centric practices, the brand delivers innovative, tech-forward solutions while upholding a legacy of trust, dedication, and expertise.
Data indicates that among the various segments, residential real estate in Tanzania dominates the market with a projected market volume of 637.40 billion US dollars in 2024.
This segment, the data shows, is expected to grow at an annual growth rate of 6.75 percent (CAGR 2024-2029), resulting in a market volume of 965.80 billion US dollars by 2029.
When compared globally, it is worth noting that United States is expected to generate the highest value in the real estate market, with a projected value of 132.0 trillion US dollars in 2024.
While the figures may seem comparatively modest, the trajectory reflects promising growth and investment opportunities within the country's real estate landscape owing to the nation's economic expansion fueled by robust macroeconomic policies and strategic investments in infrastructure and development projects.
Experts hint that the economic growth has led to an increase in disposable income levels, thereby driving demand for housing and real estate investment opportunities. Experts have also attributed the growth of the real estate market to rapid urbanization which is redefining the country’s demographic landscape.
Economic growth has seen a significant number of the rural population migrating from rural to urban areas in search of employment, education, and improved living standards, which in turn causes the burgeoning of urban centers and the need for high-quality residential accommodations.
Other factors for the growth are improved policies such as tax incentives for real estate developers, streamlined regulatory processes, and public-private partnerships which have facilitated the construction of housing and commercial units and catalyzed investment in the market.
Annabelle Maimu, a real estate agent, said that with evolving market dynamics, developers are diversifying their offerings to cater to varying consumer needs and preferences, from affordable housing projects targeting middle and low-income segments to luxury developments catering to high-net-worth individuals.
“The market is witnessing a proliferation of residential and commercial options tailored to diverse demographics,” she added.
Numbers never lie, the sector has great potential to contribute to the nation's economic development and well-being, and perhaps there could never be a more opportune time for the new kid on the block.
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