Dar es Salaam. Unscrupulous real estate agents and brokers could soon face tighter scrutiny as the government moves closer to establishing a Real Estate Regulatory Authority, a long-awaited reform aimed at professionalising Tanzania's property market and curbing fraudulent practices.
The planned authority is expected to regulate practitioners in the property sector, including brokers and agents, ensuring that only qualified and registered professionals are allowed to operate.
The Minister for Lands, Housing and Human Settlements Development, Dr Leonard Akwilapo, said the proposal has already passed key government processes and is now at an advanced stage before being submitted to the Cabinet for approval.
"We have reached a good stage. The proposal has gone through the relevant government processes, and we are now completing the remaining procedures before it is submitted to the Cabinet and the authority is established," Dr Akwilapo told The Citizen yesterday on the sidelines of the 50th Dar es Salaam International Trade Fair (DITF).
The planned regulator comes as Tanzania's property market continues to expand due to rapid urbanisation and growing demand for housing, commercial buildings and serviced land.
However, industry players say the sector's growth has also been accompanied by increasing cases of fraud, inflated property prices and unethical practices by unregistered brokers, exposing buyers and investors to financial losses.
"There are many genuine professionals in the sector, but there are also people operating without the required qualifications.
The regulator will ensure only registered practitioners offer real estate services, giving wananchi greater confidence when buying or selling property," Dr Akwilapo said.
The move is expected to transform a sector that has largely operated without a dedicated institution overseeing professional standards.
Stakeholders argue that the absence of such a body has allowed informal operators to flourish, creating unfair competition and making it difficult for consumers to distinguish between legitimate practitioners and fraudsters.
Eager Sky Co Ltd Market Manager, Stephano Kamote, welcomed the planned regulator, saying it would introduce professionalism and create a more organised market.
"Real estate is among the fastest-growing industries and many people want to invest.
However, the market has been operating randomly, with individuals setting prices regardless of location or actual market value," he said.
Mr Kamote said the establishment of a regulator would improve investor confidence, particularly among foreign investors seeking transparent business environments.
He added that stronger oversight could also improve tax compliance by ensuring operators are properly registered and licensed.
"There are enormous opportunities in real estate for both local and foreign investors.
A regulator will make the market more attractive because investors will have greater confidence that they are dealing with recognised professionals," he said.
Venny Construction and Real Estate Co. Ltd Marketing Manager, Batuli Sogora, described the development as a major breakthrough after years of calls from industry players.
"We have been pushing for this regulator for many years. The minister's statement gives us confidence that the process is finally moving forward," she said.
According to her, legitimate companies often face unfair competition from unregistered operators who do not meet legal and professional requirements.
"That has created an uneven playing field for companies that comply with the law. A regulator will help ensure everyone operates under the same rules while protecting consumers," she said.
Dr Akwilapo said the reforms are becoming increasingly necessary as more Tanzanians move to urban areas in search of economic opportunities.
He said the government is continuing efforts to improve land administration systems and expand planned settlements while also increasing investments in social services and infrastructure to ease pressure on major cities.
For industry stakeholders, the planned authority represents more than just another government institution.
They see it as a crucial reform that could strengthen consumer protection, improve transparency and create a more credible property market capable of attracting greater investment.
