Tanzania bets big on housing and commercial real estate as NHC accelerates strategic projects

By Business Insider Reporter, Dodoma

The Tanzanian government is ramping up its investment in housing, commercial real estate and urban infrastructure through the National Housing Corporation (NHC), with several flagship projects expected to be completed in 2026 as authorities intensify efforts to address rising urban demand and stimulate economic growth.

Presenting the Ministry of Lands, Housing and Human Settlements Development’s 2026/27 budget estimates in Parliament in Dodoma, Lands Minister Dr. Leonard Akwilapo said the government, through NHC, is implementing a broad portfolio of residential, commercial and strategic investment projects aimed at expanding access to quality housing while supporting urban economic transformation.

The projects form part of Tanzania’s wider urban development agenda as rapid population growth, urbanisation and increased investment activity continue to fuel demand for modern housing, office space and commercial infrastructure across major cities.

Among the key developments highlighted was the Kawe 711 housing project in Dar es Salaam, a 422-unit residential development valued at TSh169 billion, which has now reached 85 percent completion and is expected to be finalised by June 30, 2026.

Another major project, the Golden Premier Residence (GPR), comprising 196 housing units worth TSh127 billion, has reached 50 percent implementation and is projected for completion in 2027.

Dr. Akwilapo said the government is also preparing to roll out large-scale housing projects under the Samia Housing Scheme, a flagship programme designed to increase affordable and middle-income housing supply in rapidly growing urban centres.

The projects will include the construction of 5,000 housing units in Mtoni Kijichi and Kawe in Dar es Salaam, as well as Medeli and Iyumbu in Dodoma.

“In the 2026/27 financial year, NHC will continue implementing housing projects under the Samia Housing Scheme while launching new projects in Njedengwa in Dodoma, Urafiki in Dar es Salaam, Makongoro in Mwanza and Sokoine Complex in Arusha,” Dr. Akwilapo told Parliament.

The government’s renewed focus on housing comes amid growing concerns over Tanzania’s urban housing deficit, which experts estimate runs into millions of units, particularly in fast-expanding cities such as Dar es Salaam, Dodoma, Mwanza and Arusha.

Urban migration, population growth and increasing demand for formal housing have intensified pressure on existing infrastructure, prompting authorities to position the housing sector as both a social priority and an economic growth driver.

The minister also revealed that NHC had completed preparations for the first phase of an affordable housing programme involving 800 housing units in Salama Creek Kigamboni, Sabasaba in Morogoro, Iyumbu in Dodoma and Buswelu in Mwanza, with construction expected to commence officially during the 2026/27 fiscal year.

Beyond residential housing, the government is increasingly using commercial real estate investments to support regional economic activity and strengthen urban business ecosystems.

Several commercial projects are currently under construction across the country, including Meru View Shops in Arusha, which has reached 52 percent completion, Tabora Commercial Complex at 46 percent, Singida 2F Plaza at 85 percent, Mkwakwani Commercial Complex in Tanga at 40 percent, Kashozi Commercial Complex in Kagera at 65 percent, Uluguru Plaza in Morogoro at 42 percent and Iringa Commercial Complex at 40 percent.

The government also confirmed that commercial and office developments in Masasi, Mtanda in Lindi and Zongomela in Kahama have already been completed, while preparations for additional projects in Usa River and Ngarenaro are in advanced stages.

Analysts say the expansion of commercial real estate infrastructure could help unlock investment opportunities in secondary cities while supporting trade, logistics, tourism and small business growth.

In addition to wholly-owned projects, NHC is continuing to expand its public-private partnership model. Dr Akwilapo said the corporation is currently managing 21 joint venture projects worth Sh351 billion, with three already completed and the remainder averaging 56 percent implementation.

He noted that NHC is also reviving long-stalled projects to maximise returns on public investments and improve asset productivity. Of 24 previously stalled projects, 13 have already been completed while the remaining developments continue to undergo restructuring and implementation.

The corporation has simultaneously strengthened its financial position. According to the minister, NHC reduced its debt burden from Sh27.98 billion in 2024/25 to Sh19 billion by May 15, 2026, reflecting improved financial management and operational efficiency.

NHC has also continued renovating its existing housing stock, completing rehabilitation works on 1,283 houses out of a planned 1,600 units – equivalent to 80 percent of the target.

On the infrastructure side, the corporation has completed construction of eight government office buildings in Mtumba Government City in Dodoma as well as the Tanzanite Mineral Market building in Mirerani, Manyara.

Construction of Tanzania Communications Regulatory Authority (TCRA) offices in Dodoma has reached 73 percent completion, while the Zanzibar project stands at 50 percent. The latest projects reinforce NHC’s growing role not only as a housing developer but also as a strategic state investment vehicle supporting Tanzania’s urban transformation agenda, infrastructure expansion and long-term economic development goals.