It’s also becoming a smart place for real estate investment. With growing cities like Dar es Salaam, Arusha, and Dodoma, and increasing demand for housing and commercial properties, more foreign investors are turning to Tanzania.
If you’re new to real estate investment in Tanzania — whether you're buying land, building a home, or investing in rental property — this guide will walk you through the basics in easy language.
Before jumping into the how, let’s understand the why. What makes Tanzania attractive to foreign property investors?
1. Fast-Growing Economy
Tanzania is one of the fastest-growing economies in East Africa. Infrastructure is improving, cities are expanding, and more people are moving to urban areas. This means more demand for homes, shops, and offices.
2. Political Stability
Tanzania is a peaceful and politically stable country, which is important for avoiding investment risks.
3. Tourism & Business Growth
Tourism and trade (especially with neighboring countries) continue to grow. Properties near tourist zones or business hubs are in high demand.
4. Affordable Land & Property
Compared to places like Kenya or South Africa, Tanzania still offers land and houses at reasonable prices, especially outside major cities.
Here’s the honest truth: foreigners cannot own land in Tanzania directly. But don’t worry — you can still invest. Here’s how:
Land Ownership Rules:
All land in Tanzania is owned by the government
Citizens can obtain land through a Right of Occupancy
Foreigners can lease land for up to 99 years
So, as a foreigner, you can’t buy land in your name, but you can lease it or buy property through a company.
1. Lease Land from the Government
Apply for a long-term lease (33, 66, or 99 years). You’ll get a Certificate of Occupancy.
2. Set Up a Local Company
A business registered in Tanzania can own property, even if it’s foreign-owned.
3. Partner with a Local Citizen
You can co-invest with a Tanzanian through legal agreements. Just ensure everything is documented properly.
Tip: Always work with a trusted lawyer.
1. Dar es Salaam
The commercial capital. Ideal for apartments, rental homes, and office buildings.
2. Dodoma
The growing national capital. Best for low-cost housing and plots for future development.
3. Arusha
Tourism hub. Great for eco-lodges, guesthouses, and hostels.
4. Zanzibar
Beach paradise with demand for holiday homes, villas, and boutique hotels.
Residential Homes – For living or rental
Apartments – Popular with urban renters
Plots (Land) – Buy and hold or build
Commercial Spaces – Offices, shops, warehouses
Hospitality Property – Guesthouses, lodges, B&Bs
Pro Tip: Always check zoning laws before buying.
Step 1: Do Your Research
Explore locations, market trends, and legal requirements. Talk to locals and agents.
Step 2: Get a Lawyer
They’ll help verify documents and protect you from scams.
Step 3: Verify Land Ownership
Ensure there are no disputes or debts. Verify documents with the Ministry of Lands.
Step 4: Negotiate and Agree on Price
Settle on a fair deal with the seller.
Step 5: Sign Legal Agreements
Register everything officially.
Step 6: Pay Taxes and Fees
Stamp duty
Transfer tax
Lawyer fees
Registration costs
Step 7: Get a Certificate of Occupancy or Lease Title
This is your official legal right to the land/property.
Avoid shortcuts — follow legal procedures
Work only with verified agents and lawyers
Always visit the property in person
Don’t invest in land with disputes
Check infrastructure — roads, water, internet
Think long-term — real estate takes time
Yes, if planned well. You can:
Rent your property to locals, tourists, or expats
Sell later for capital gains
Run a guesthouse or Airbnb
Invest in retail spaces or small offices
The market is steady, not fast, but with patience, it can be very rewarding.
Tanzania is a land of opportunity. From peaceful cities to beach towns, the real estate market is open to smart, careful investors.
Take it step-by-step:
Learn the laws
Hire good legal help
Double-check every document
With the right mindset, investing in Tanzania can bring profit, personal connection, and a stake in a growing future.
