Could 2025 be the right moment to invest in Tanzanian property?

2024 has been one of the most impressive years to Tanzania, As of 3rd October 2024, the Central Bank of Tanzania (BOT) stated that Tanzania’s economy has grown by 5.6%▲ in the first quarter of 2024.

This profound growth has been contributed by construction, agriculture, financial and insurance and transportation activities.

So sets the question.......... "Could 2025 be a good year to invest in property in Tanzania?"

Tanzania's expected massive growth means more people will need places to live and work, driving up demand for real estate. This increased demand can lead to higher property values and rental income, making it a promising opportunity for real estate investors.

With a combination of economic growth and urban development i.e easy transportation (MWENDOKASI), property prices in Dar es Salaam are expected to rise in 2025.

That's not all, this impressive growth will keep going on since Tanzania's economy is expected to increase by 27.7% during the next 5 years, resulting in an average GDP growth rate of 5.5%

At the same time Zanzibar’s economy grew by 6.4% ▲ in the first quarter of 2024 which was driven by financial and insurance and construction.

Interest Rate

On 2nd October, the Monetary Policy Committee (MPC) met and decided to maintain the Central Bank Rate at 6% for the quarter ending December 2024 because inflation is projected to remain low consistent with the target of 5%.

In simple words, the Central Bank maintained the interest rate set by BOT that determined the costs at which commercial banks can borrow money from BOT.

When BOT raises the interest rate, borrowing becomes more expensive which can reduce spending and inflation.

Vice versa, lowering the interest rate makes borrowing cheaper, stimulating spending and investment which can boost economic activity.

?This rate also signals BOTs opinion on the economy, influencing inflation and economic growth expectations.

The Key insights

In a nutshell Tanzania’s economic performance as for 2024;

• ???? Private sector credit growth averaged to 17.1% ▲
• ??? Risk in Lending remained low.▼
• Inflation in Tanzania was 3 and 3.1% in July and August 2024 respectively and is projected to remain at around 3.2%
• Inflation eased in Zanzibar reaching 5.1%
• Public debt amounted to 32,721.6 Million USD equivalent to 46.9% of GDP

Does this mean Tanzanian's Populations is growing and getting a bit richer?

Read my article and find out: https://www.dhirubhai.net/posts/imani-minja_tanzanias-population-is-growing-and-getting-activity-7253336727237369857-hAPP?utm_source=share&utm_medium=member_desktop

Strategically grow with data??