In the coming years, the property market in Tanzania is expected to rise rapidly, backed by solid, uninterrupted economic growth. In 2018, the economy of Tanzania expanded by 7 percent, following an average real GDP growth rate of 6.5 percent from 2000 to 2017, led largely by its booming construction industry. President John Magufuli has embarked upon an aggressive industrialization policy since assuming office in November 2015, spending billions of dollars in roads and numerous housing schemes.
From 2016 to 2018, the construction industry expanded by more than 17 percent annually. Despite this, demand for accommodation still greatly outstrips supply. According to the Centre for Affordable Housing Finance in Africa (CAHF), the country is witnessing rapid population growth of 3.11 percent annually and an urbanization rate of 5.22 percent, creating high housing demand, especially in the city centre.
Following the government’s decision to transfer its administrative functions to the capital, Dodoma, Tanzania’s national capital, is experiencing a building boom. Land values are now raising each year by double-digit percentages.
With identified investment opportunity in housing for rental Dodoma. However, investing in property requires multiple steps, and in a few paragraphs it will be disingenuous to try to cover it all. This guide is a perfect place to start if you want a more complete insight at what it takes to be an investor in rental property. Let’s look in details on how to cheap and highly paying rental property which you can invest right now in Dodoma
Renting your house on a short term basis or a property, this type of investing needs higher commitment than long-term leases, but far greater return opportunity. This type of investment is lower-cost and even your existing home can be transformed to this type of investment. The return on your investment is very higher due to migration of middle-income class to national capital whom are chasing for economic opportunities which rose following Dodoma being national capital.
If you are searching for a cheap way to reach this real estate market, consider building a place to rent out in your own house (in case you don’t have the capital to secure new land plots which are very cheap in Dodoma). This option can also be used to help pay for dept. in case you borrowed for your first house. Or you can get the full-time property as a tenant and rent out short-term rentals. It will rely on the time, commitment, and resources you have at your disposal to address this business.