The mortgage market in Tanzania registered a 1.7 percent growth in the value of residential mortgages to TZS 694.35bn1 as of 30 June 2025 from TZS 683.03bn recorded on 31 March 2025. On a year-to-year comparison, 11.10 percent growth was registered in value of
mortgage loans as of 30 June 2025 (TZS 625bn: Q2 2024).
The number of banks and financial institutions reporting mortgages decline to 29 Banks as of 30 June 2025.
The overall average mortgage debt size as of 30 June 2025 was TZS 122.72 million equivalent to US$ 46,637.652 compared to TZS 118.66 million equivalent to US$ 44,438.12 reported on previous quarter.
The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) stood at 0.43 percent compared to the previous quarter, 0.42 percent and 0.41 percent as of similar period in year 2024.
Mortgage debt advanced by the top 5 Primary Mortgage Lenders (PMLs) accounted for 63 percent of the total outstanding mortgage debt.
Typical interest rates offered by mortgage lenders ranged between averages of 15 - 19 percent.
The Tanzanian housing sector’s fast-growing demand is mainly driven by the strong and sustained economic growth with GDP growth averaging 5.8 percent over the past decade, the fast-growing Tanzanian population, which is estimated to more than double by 2050, and
efforts by the Government in partnership with global non-profit institutions and foreign Governments to meet the growing demand of affordable housing.
