New lands ministry directive to shake up real estate industry

Dar es Salaam. The government has issued a new directive requiring all private real estate companies to finalise property sale transactions at government offices under the Ministry of Lands, Housing, and Human Settlements Development.

Minister Jerry Silaa announced the directive on December 22, 2023, in Dar es Salaam, citing rising complaints of scams and conning by untrustworthy agents.

He emphasised that, starting with Dar es Salaam, private real estate companies must also have offices within the Land Ministry buildings to ensure transparency and close monitoring.

The directive has sparked mixed reactions, with some players in the real estate industry expressing concerns about its feasibility, particularly for smaller companies.

One anonymous Dar es Salaam agent voiced worries about capital constraints, stating, “We might not be able to afford Ministry office space. Some of us operate remotely.”

However, others, like city resident Juma Ludovick, welcomed the move, believing it will crack down on shady online dealers. He commented, “Those shoddy dealers who operate online now have nowhere to hide.”

This directive is part of a broader set of reforms undertaken by the Ministry to strengthen transparency in land acquisition. These include establishing a Real Estate Regulatory Authority (RELA), a body that will oversee all real estate matters, including sales and rentals. “We are finalizing the establishment of RELA,” Minister Silaa stated.

Minister Silaa emphasised that these reforms mark a new era for land administration in Tanzania. He pointed to his travels across 25 regions and numerous meetings with citizens as the driving force behind these changes.

“I have spent 219 hours talking to citizens face-to-face, listening to their grievances,” he said.

The ministry also launched a mobile application known as Ardhi Kiganjani that aims to streamline communication between citizens and the ministry.

 The app, according to the Lands Ministry, is a new way of digitizing communication and provides the opportunity for prompt response to various land challenges.

The new directive on property sales and the planned RELA are significant steps towards promoting transparency and combating fraud in Tanzania’s real estate sector.