Tanzanians’ house ownership cultural practice is dominated by people resorting to build houses on their own in incremental basis from their personal savings and by a small contractor “mafundi”. However, about a decade ago real estate developers have introduced modernized residents i.e. condominium and gated communities that are offered for sale through presale arrangement. This contravenes the popular self-built house traditional yet there has been a significant market response. However, recently developers are struggling to achieve sale as prospective buyers hesitate to take part.

Residential developers ought to grasp a better understanding of the interests, perceptions and preferences of their prospective in order to outshine. This study investigates the key criteria that take precedency among house buyers as they make house purchase decision as it is a platform to explain the most probable reason for slow sales. To triumph this aim the study adopts a quantitative research approach administered to 150 homeowners and prospective buyers, accompanied with interviews to developers as well as lending institutions.

Findings reveals that, income level, household size, quality of the house, design of the house, location from the social amenities, mortgage interest rate, investment purposes living condition and government participation to be the most significant factors influencing Tanzanian house buying decision. Thus developer ought to put extreme attention in situation analysis on the significant attributes highlighted herein so as to be able to capture the market.