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Yes, the analysis of Dar es Salaam's property market is included in our pack
As of September 2025, the average price per square metre for residential property in Dar es Salaam stands at approximately USD 1,200, with significant variations across different neighborhoods and property types. Prime city center locations like Masaki and Oyster Bay command prices between USD 1,400-1,800 per sqm, while emerging and suburban areas offer opportunities from USD 500-1,200 per sqm, making Dar es Salaam an attractive option for both investors and residents seeking value in East Africa's growing property market.
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Dar es Salaam's residential property market shows USD 1,200 average per sqm with prime areas reaching USD 1,800 and budget zones starting at USD 500. The market has grown 35-40% over five years with projected 5-7% annual growth continuing through 2030.
| Property Type | Price Range (USD/sqm) | Best Locations |
|---|---|---|
| Studio Apartments | $1,030-$1,070 | City Center, Upanga |
| Modern Apartments | $1,080-$1,140 | Mikocheni, Msasani |
| Luxury Villas | $2,060-$2,140 | Masaki, Oyster Bay |
| Townhouses | ~$1,926 | Sinza, Mbezi Beach |
| Urban Land Plots | $20-$64 | Kigamboni, Tegeta |
| Budget Properties | $500-$800 | Kariakoo, Tabata |
| Premium Locations | $1,400-$1,800 | City Center, Coastal Areas |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What is the current average price per square metre in Dar es Salaam for residential properties?
As of September 2025, the average price per square metre for residential property in Dar es Salaam is approximately USD 1,200.
Prime city center locations and coastal areas typically command the highest prices, ranging between USD 1,400-1,800 per sqm. These premium zones include neighborhoods like Masaki, Oyster Bay, and central Upanga, where properties benefit from excellent infrastructure, proximity to business districts, and established amenities.
Emerging and suburban neighborhoods offer more affordable options, with prices ranging from USD 500-1,200 per sqm. Areas like Kigamboni, Kariakoo, Tabata, and Tegeta represent excellent value propositions for buyers seeking entry points into Dar es Salaam's property market. Mid-tier neighborhoods such as Mikocheni, Sinza, and Msasani fall into the USD 1,000-1,400 range, providing a balance between location benefits and affordability.
The wide price range reflects Dar es Salaam's diverse property landscape, from luxury waterfront developments to affordable housing projects in developing areas.
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How do prices per square metre differ between property types in Dar es Salaam?
| Property Type | Average Price (USD per sqm) | Typical Size & Comments |
|---|---|---|
| Studio Apartment | $1,030-$1,070 | 30sqm units, entry-level market segment |
| City Apartment | $1,030-$1,070 | 60sqm units, mid-size residential options |
| Modern Apartment | $1,080-$1,140 | 75sqm with modern amenities and facilities |
| Urban Loft | $1,290-$1,330 | 80sqm, trendy urban settings with unique design |
| Townhouse | ~$1,926 | 150sqm, premium residential segment |
| Luxury Villa | $2,060-$2,140 | 100sqm+, prime locations with exclusive features |
| Urban Land Plot | $20-$64 | Per sqm, varies significantly by location |
Which neighborhoods have the highest, emerging, and most budget-friendly price levels?
Dar es Salaam's property market shows distinct price tiers based on location, infrastructure quality, and development status.
**Highest Price Areas (USD 1,400-1,800/sqm):** The premium segment includes City Center, Masaki, Oyster Bay, and Upanga. These established neighborhoods offer the best infrastructure, proximity to business districts, international schools, and luxury amenities. Properties here command top prices due to their prestige, security, and comprehensive urban services.
**Emerging Growth Areas (USD 1,000-1,400/sqm):** Fast-growing coastal and mid-tier neighborhoods include Mbezi Beach, Msasani, Sinza, and Mikocheni. These areas benefit from recent infrastructure improvements, new commercial developments, and increasing expat populations. They represent excellent opportunities for capital appreciation while offering modern amenities at more accessible prices.
**Budget-Friendly Zones (USD 500-1,200/sqm):** Affordable areas include Kigamboni, Kariakoo, Tabata, Tegeta, Bunju, Kinyerezi, and Ubungo. These neighborhoods offer the best value for first-time buyers and investors seeking high rental yields. Many of these areas are experiencing rapid development and infrastructure improvements, suggesting strong future appreciation potential.
The price variations reflect differences in infrastructure maturity, accessibility, and development status across Dar es Salaam's expanding urban landscape.
What would be the average total purchase cost for a typical residential unit?
For a typical 75sqm modern apartment in Dar es Salaam, buyers should budget between USD 84,000-93,000 including all fees and costs.
The base property price ranges from USD 81,000-85,500 for a 75sqm unit at current market rates. However, additional costs significantly impact the total investment required. Closing and transfer fees typically add 2-4% of the purchase price, equivalent to USD 1,620-3,280 for this property size.
Government taxes and stamp duties contribute another 1-3% of the purchase price, adding USD 810-2,565 to the total cost. Legal fees, property registration, and administrative costs generally range from USD 500-2,000, depending on the complexity of the transaction and legal representation chosen.
These additional costs mean buyers should budget approximately 5-10% above the listed property price to cover all transaction expenses. International buyers may face additional costs related to currency exchange, international transfers, and specialized legal services.
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How have price-per-sqm values changed compared to five years ago and one year ago?
Dar es Salaam's property market has demonstrated consistent and strong growth over both short and medium-term periods.
Over the past five years (2020-2025), the market has experienced cumulative appreciation of 35-40% citywide, representing an average annual growth rate of 5-7%. This sustained growth reflects Tanzania's economic development, urbanization trends, and increasing foreign investment in the real estate sector.
In the most recent year (2024-2025), property prices have risen by 8-10% in prime areas, with an overall citywide average increase of 7%. This acceleration compared to the five-year average indicates strong current market momentum driven by infrastructure improvements, population growth, and increased investor confidence.
Prime neighborhoods like Masaki and Oyster Bay have outperformed the market average, while emerging areas such as Mikocheni and Sinza have shown particularly strong appreciation as they transition from developing to established neighborhoods. Even budget-friendly areas have experienced solid 5-6% annual growth, reflecting the rising tide lifting all segments of the market.
This consistent appreciation pattern suggests a healthy, growing market rather than speculative bubble conditions.
What are the projected price-per-sqm trends over the next 1, 5, and 10 years?
Market projections for Dar es Salaam indicate continued growth across all timeframes, though at varying rates.
**One-Year Outlook (2025-2026):** Property prices are expected to rise 3-7% based on current infrastructure projects, population growth, and economic indicators. This represents a slight moderation from 2024-2025's accelerated 7-8% growth, suggesting market stabilization at sustainable levels.
**Five-Year Projection (2025-2030):** Analysts expect continued annual growth of 5-7%, sustained by Tanzania's ongoing urbanization, infrastructure development, and economic growth. Major projects like the Standard Gauge Railway and port expansions should support property demand and values throughout this period.
**Ten-Year Outlook (2025-2035):** Long-term projections depend heavily on Tanzania's economic development, regulatory environment, and regional stability. Continued urban migration and climate-driven coastal development could support sustained property appreciation, though rates may moderate to 3-5% annually as the market matures.
These projections assume continued political stability, economic growth, and infrastructure investment. External factors like global economic conditions or regional developments could influence actual outcomes.
How does Dar es Salaam compare to other major African cities?
| City | Average Price/sqm (USD) | Rental Yields (%) | Market Position |
|---|---|---|---|
| Nairobi, Kenya | $1,500-$2,000 | 5-7% | Most expensive, mature market |
| Dar es Salaam, Tanzania | $1,200 | 6-9% | Strong growth, balanced yields |
| Kampala, Uganda | $1,100 | 7-10% | High rental yields, lower entry cost |
| Kigali, Rwanda | $1,000 | 6-8% | Most affordable major city |
| Johannesburg, South Africa | $800-$1,200 | 4-6% | Established but challenged market |
| Lagos, Nigeria | $1,300-$1,800 | 5-8% | Large market, infrastructure challenges |
| Accra, Ghana | $1,400-$1,600 | 6-8% | Stable but expensive |
Which neighborhoods offer the smartest value per square metre for residents?
For buyers planning to live in their property, Mikocheni, Sinza, Msasani, and Mbezi Beach provide the optimal combination of value, appreciation potential, amenities, and accessibility.
These mid-tier neighborhoods offer prices in the USD 1,000-1,400 range while providing modern infrastructure, reliable utilities, and proximity to business districts. Mikocheni and Sinza particularly benefit from ongoing commercial development and improved transportation links, suggesting strong future appreciation potential alongside current livability.
Msasani and Mbezi Beach appeal to residents seeking coastal lifestyle benefits without premium Masaki or Oyster Bay prices. These areas offer beach access, newer developments, and growing expat communities while maintaining more affordable entry points than established premium zones.
For budget-conscious buyers, Kigamboni and Tabata represent excellent value propositions. These areas benefit from planned infrastructure improvements, including the Kigamboni Bridge completion and planned commercial developments. Early buyers in these neighborhoods position themselves for significant appreciation as infrastructure projects mature.
University-adjacent areas like Ubungo offer steady property values and rental potential, making them suitable for residents who also want investment upside.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Tanzania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which areas deliver the best rental yield relative to price per square metre for short-term rentals?
Prime locations including Masaki, Oyster Bay, and Upanga deliver strong short-term rental yields of 6-9% despite higher purchase prices.
These premium neighborhoods attract business travelers, diplomats, and affluent tourists willing to pay premium daily rates for quality accommodations. Properties in these areas benefit from excellent security, reliable infrastructure, and proximity to business districts, embassies, and high-end restaurants. The combination of high daily rates and strong occupancy levels compensates for the higher per-square-meter acquisition costs.
Emerging areas like Msasani, Sinza, and Mbezi Beach often provide superior yields of 7-10% due to their lower entry costs combined with strong demand from international professionals and mid-tier business travelers. These neighborhoods offer modern amenities and coastal access at prices significantly below premium zones, creating attractive value propositions for short-term rental operators.
Coastal properties particularly benefit from weekend and holiday demand, while areas near the airport or business districts capture weekday corporate demand. Properties with unique features like ocean views, modern amenities, or distinctive architecture command premium rates regardless of location.
The key success factor is matching property type and location to target customer segments while maintaining competitive pricing relative to hotels and other short-term options.
Where does price-per-sqm align best with stable rental income for long-term investment?
Kariakoo, Msasani, Sinza, and Ubungo offer the best price-to-long-term-rental ratios in Dar es Salaam's current market.
Kariakoo, despite ongoing redevelopment projects, maintains strong rental demand from local professionals and small business owners. The area's central location and transportation links ensure consistent tenant demand, while property prices remain accessible for investors. Major redevelopment plans suggest future appreciation potential alongside stable current yields.
Msasani and Sinza attract steady rental demand from expatriate workers, NGO staff, and local professionals seeking modern amenities and reasonable commutes. These areas provide rental stability through diverse tenant bases while offering moderate appreciation potential as infrastructure continues improving.
Ubungo benefits from its proximity to the University of Dar es Salaam and multiple educational institutions, creating consistent demand from students, faculty, and young professionals. This academic connection provides rental stability even during economic fluctuations, while property prices remain attractive for long-term investment strategies.
These areas balance affordable acquisition costs with reliable rental demand, creating sustainable cash flow for long-term investors focused on income generation rather than speculative appreciation.
Which zones promise the greatest capital appreciation per square metre for resale strategies?
Kariakoo, Mikocheni, Mbezi Beach, and Sinza currently offer the most promising capital appreciation prospects for buy-to-resell investors.
Kariakoo stands out due to massive redevelopment initiatives transforming this traditional commercial district into a modern mixed-use area. Major infrastructure projects and commercial developments should drive significant property value increases as the area transitions from its current state to a modernized urban center. Early investors can capture this transformation value at current market prices.
Mikocheni benefits from its strategic location between established premium areas and developing zones. Ongoing commercial projects, improved transportation links, and growing business presence suggest rapid appreciation potential as the area transitions toward premium status. Properties purchased at current USD 1,000-1,400 per sqm rates could appreciate significantly as development projects complete.
Mbezi Beach represents coastal development potential at accessible prices. As Dar es Salaam's premium coastal areas become saturated and expensive, Mbezi Beach offers similar lifestyle benefits at lower entry costs. Planned resort and commercial developments should drive appreciation as the area establishes itself as a premier coastal destination.
Sinza's rapid gentrification and infrastructure improvements position it for continued strong appreciation as it evolves from emerging to established neighborhood status.
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Can you provide specific purchase price examples by neighborhood and property type?
| Neighborhood | Apartment Price/sqm (USD) | House/Villa Price/sqm (USD) |
|---|---|---|
| Masaki/Oyster Bay | $1,400-$1,800 | $2,060-$2,140 |
| Mikocheni | $1,000-$1,400 | $1,600-$1,800 |
| Upanga | $1,200-$1,500 | $1,600-$1,900 |
| Kariakoo | $800-$1,200 | $1,200-$1,500 |
| Kigamboni/Suburbs | $500-$800 | $900-$1,150 |
| Msasani/Sinza | $1,000-$1,400 | $1,350-$1,800 |
| Tabata/Tegeta/Bunju | $500-$900 | $900-$1,000 |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Dar es Salaam's property market offers compelling opportunities across multiple price segments, from premium coastal developments to emerging neighborhood investments.
With average prices of USD 1,200 per sqm and projected continued growth of 5-7% annually, the market provides attractive options for both residents and investors seeking exposure to East Africa's expanding economy.
Sources
- TheAfricanVestor - House Prices in Tanzania
- TheAfricanVestor - Dar es Salaam Price Forecasts
- MR Land Properties - Tanzania Real Estate Trends 2025
- TheAfricanVestor - Dar es Salaam Property Market
- Tanzania Invest - Properties
- The Property Hub TZ - Understanding Property Prices
- Global Property Guide - Tanzania Square Meter Prices
- Properstar - Tanzania House Prices