Find Property and Real Estate expertise in United Republic of Tanzania
- Regulation of sector
The markets for both commercial and residential property are not well developed. All land in Tanzania, commercial and residential, is owned by the government although in the early 2010s many were calling for this law to be revised. Individuals, including foreigners, may buy leasehold property for up to 99 years, and, subject to the approval of the Tanzania Investment Centre (or Zanzibar Investment Promotion Authority in Zanzibar). However foreign individuals purchasing leasehold land may only do so for investment purposes and with the proper approval.
There is a small market for expatriate housing and this community is principally based around Oyster Bay in Dar es Salaam. The supply of high end and middle level residential units in the country is limited, estimated at between around 6,000 and 8,000. Stamp duty consists of a 10% withholding tax fee and a 1% stamp duty fee for money or any property. In addition, net rental income is taxable at 30%.
The World Economic Forum Global Competitiveness Report (2012-2013) ranks Tanzania 106th out of 144 countries worldwide for property rights (including financial assets). The country scores 3.6 out of 7 where 1 indicates that property rights are poorly protected and 7 that such rights are very strongly protected. The world mean for this report was 4.3. The World Bank Ease of Doing Business Index ranks Tanzania 137th out of 185 countries worldwide when it comes to registering a property.
Some examples of estate agents operating in Tanzania include the global firm Knight Frank and local company Seven Estate Agent.
Rental agreements are often made on long-term basis: often rent is paid and notice given over a six month period. It is also common practice to pay on an annual or three-monthly basis. The eviction of a tenant by the landlord is subject to approval by the Ward Tribunal and, if necessary, goes through the District Land and Housing Tribunal, the High Court and Court of Appeals.