Institutional and Regulatory Framework for the Establishment of Real Estate Investment Trusts (REITs): Evidence from the Tanzanian Property Market

This study provides an in-depth assessment of the regulatory and institutional framework governing the establishment and operation of Real Estate Investment Trusts (REITs) in Tanzania. Although REITs were formally introduced under the Capital Markets and Securities framework in 2011 as a mechanism to mobilize long-term capital for real estate development, the market has remained largely underdeveloped. The study employs a qualitative research design drawing on documentary analysis of legislation, regulations, and policy instruments, complemented by stakeholder consultations with regulators, fund managers, and institutional investors. The findings indicate that stringent minimum capital requirements, regulatory complexity, lack of a clear tax pass-through regime, and weak institutional coordination have constrained the development of REITs. A light policy-context update incorporating developments between 2019 and 2024 shows that, despite progress in capital market deepening and housing finance reforms, structural rigidities continue to limit the effectiveness of REITs. The study concludes that targeted regulatory reform, enhanced institutional coordination, and improved tax clarity are essential to unlock the potential of REITs as a sustainable real estate financing vehicle in Tanzania.