Tanzania’s mortgage market continued to record steady growth in 2025, reflecting increasing demand for housing finance as the country’s economy expands and urbanization accelerates.
According to data released by the Tanzania Mortgage Refinance Company (TMRC), the value of residential mortgages rose by 3.8 percent in the third quarter of 2025 to reach TZS 720.81 billion as of September 30, up from TZS 694.35 billion recorded on June 30, 2025.
The latest figures also show strong year-on-year growth. The value of mortgage loans increased by 10.92 percent compared to TZS 649.84 billion recorded during the same period in 2024, highlighting gradual improvement in access to housing finance across the country.
TMRC’s report shows that the number of banks and financial institutions offering mortgage products stood at 29 as of September 2025.
However, the market remains concentrated, with the top five Primary Mortgage Lenders accounting for about 62 percent of the total outstanding mortgage debt.
The overall average mortgage loan size rose slightly during the period under review. As of September 30, 2025, the average mortgage debt stood at TZS 124.17 million, equivalent to about USD 50,579, compared to TZS 122.72 million, or approximately USD 49,987, recorded in the previous quarter.
Interest rates for mortgage loans remained relatively high, typically ranging between averages of 15 percent and 19 percent among lenders, a factor that continues to influence affordability for many potential homeowners.
Despite the growth, mortgage financing still accounts for a small share of the overall economy. TMRC data indicates that the ratio of outstanding mortgage debt to Gross Domestic Product (GDP) increased to 0.46 percent in the third quarter of 2025 from 0.43 percent recorded in the previous quarter.
The Tanzania Mortgage Refinance Company attributes the steady rise in housing finance demand to Tanzania’s sustained economic expansion and strong population growth.
Over the past decade, the country’s GDP has grown at an average rate of about 5.8 percent, supporting increased income levels and demand for home ownership.
In addition, Tanzania’s rapidly expanding population, which is projected to more than double by 2050, is expected to further drive demand for housing, particularly in major urban centres.
The company also pointed to ongoing efforts by the government, working with international development partners and global non-profit organizations, to address the growing demand for affordable housing through various financing and housing development initiatives.
As Tanzania’s urban population continues to grow, stakeholders in the housing sector say expanding access to mortgage financing, increasing housing supply and strengthening policy frameworks will be crucial in supporting long-term growth in the country’s housing market.
