Tanzania’s Mortgage Market Climbs Nearly 11% Year-on-Year
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Tanzania’s mortgage market is expanding despite high borrowing costs and limited housing supply. New data shows residential mortgage lending grew almost 11% over the past year.
Tanzania’s residential mortgage market grew by 3.8% in the third quarter of 2025, pushing the total value of outstanding home loans to more than TZS 720 billion, according to new data from the Tanzania Mortgage Refinance Company (TMRC). Year-on-year growth reached nearly 11%, reflecting increasing demand for housing finance despite elevated interest rates.
The expansion highlights growing activity in Tanzania’s formal housing market as urbanisation, population growth, and sustained economic expansion continue to drive housing demand. Mortgage lenders are still charging relatively high rates averaging between 15% and 19%, but analysts say stronger participation from banks and refinancing support are helping deepen the sector. TMRC also noted that housing demand is expected to accelerate further as Tanzania’s population and urban centres continue to grow rapidly.
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