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Tanzanian mortgage market registers high growth rate

DAR ES SALAAM Tanzania (Xinhua) -- Tanzania’s mortgage market registered a significant growth rate of 29 percent during the second quarter of 2016 compared with 4.2 percent in the first quarter, the country’s Central Bank said Friday.

The Bank of Tanzania (BoT) also said in its mortgage market update ending June 30, 2016, that more lenders were offering mortgage products in the East African nation.

“The mortgage market in Tanzania has continued to grow steadily as the pace of housing investment picks up,” said the BoT mortgage update.

The mortgage update said the increase can be attributed to factors including increased awareness on mortgage loans among borrowers as a result of campaigns by banks, as well as increased competition as new lenders enter the market.

It said as of June 30, 2016, total lending by banking sector for the purposes of residential housing reached 220 million U.S. dollars.

It said the Tanzanian housing sector’s fast-growing demand was mainly driven by the strong and sustained economic growth with annual GDP growth averaging almost 7 percent over the past decade.

“The Tanzanian housing demand which is estimated at 200,000 houses annually and a total housing shortage of 3 million houses, has also been boosted by easier access to mortgages,” said the update.

The number of mortgage lenders in the market increased from three in 2009 to 28 by June, 2016.



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