The mortgage market in Tanzania registered a 3.8 percent growth in the value of residential mortgages to TZS 720.81bn as of 30 September 2025 from TZS 694.35bn recorded on 30 June 2025. On a year-to-year comparison, 10.92 percent growth was registered in value of mortgage loans as of 30 September 2025 (TZS 649.84bn: Q3 2024).
The number of banks and financial institutions reporting mortgages was 29 as of 30 September 2025.
The overall average mortgage debt size as of 30 September 2025 was TZS 124.17 million equivalent to US$ 50,5792 compared to TZS 122.72 million equivalent to US$ 49,987 reported on previous quarter.
The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) increased to 0.46 percent compared to 0.43 recorded in the previous quarter.
Mortgage debt advanced by the top 5 Primary Mortgage Lenders (PMLs) accounted for 62 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.
The extended broad money supply (M3) grew by 20.8 percent in the year ending September 2025, broadly unchanged from the level in the previous month, driven mainly by strong credit expansion to the private sector. Credit to the private sector maintained robust growth of 16.1 percent, almost the same as in the preceding month. Mining and quarrying recorded the highest credit growth, expanding by 32.4 percent, outpacing agriculture, which recorded 27.6 percent growth. Personal loans—mainly used to finance micro, small, and medium-sized enterprises—continued to account the lion’s share of private sector credit, at 36.7 percent, trailed by trade and agriculture, at 13.6 percent and 12.9 percent, respectively.
