Authored by the expert who managed and guided the team behind the Tanzania Property Pack
Everything you need to know before buying real estate is included in our Republic of the Congo Property Pack
Tanzania's property market shows strong regional variations, with Dar es Salaam averaging $1,200 per square meter while Zanzibar beachfront areas can reach $5,000 per square meter.
The market has experienced 6-8% annual growth in urban areas, driven by infrastructure development and rising demand from both local buyers and international investors. Property prices vary significantly by location and type, from budget-friendly suburban apartments to luxury coastal villas.
If you want to go deeper, you can check our pack of documents related to the real estate market in Tanzania, based on reliable facts and data, not opinions or rumors.
Tanzania's residential property market averages $1,200 per square meter nationally, with Dar es Salaam city center at $1,200-$1,800 per sqm and Zanzibar reaching $3,700-$5,000 per sqm for premium locations.
The market offers diverse investment opportunities across different property types and price ranges, with strong rental yields of 6-15% depending on location and strategy.
| City/Area | Average Price per sqm (USD) | Property Type Focus |
|---|---|---|
| Dar es Salaam (Prime) | $1,400-$1,800 | Luxury apartments, condos |
| Dar es Salaam (Suburbs) | $500-$800 | Family houses, townhouses |
| Zanzibar (Beachfront) | $3,700-$5,000 | Luxury villas, resort properties |
| Zanzibar (City) | $1,800-$2,200 | City apartments, commercial |
| Arusha | $700-$1,100 | Mixed residential, expat housing |
| Dodoma | $800-$1,200 | Government housing, emerging areas |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What's the current average price per sqm in Tanzania overall, and how does it differ across major markets?
Tanzania's national average property price stands at $1,200 per square meter for new builds as of September 2025.
Dar es Salaam city center commands $1,200 per square meter for standard apartments, while prime neighborhoods like Masaki and Oyster Bay reach $1,400-$1,800 per square meter. Suburban areas offer more affordable options at $500-$800 per square meter.
Arusha presents a mid-range market with prices between $700-$1,100 per square meter, depending on the specific area and property type. Prime neighborhoods including Arusha CBD, Moshono, and Usa River sit at the higher end of this range.
Dodoma shows mixed residential pricing of $800-$1,200 per square meter, with lower-priced land in areas like Nkuhungu and the outskirts targeting rapid appreciation potential.
Zanzibar City demonstrates the highest price variations, with top apartments reaching $3,700 per square meter in the city center, typical city apartments ranging $1,800-$2,200 per square meter, suburban properties starting at $1,100 per square meter, and beachfront luxury properties commanding up to $5,000 per square meter.
How do average sqm prices break down by property type in Tanzania?
| Property Type | Average Price (USD) | Price per sqm (USD) |
|---|---|---|
| Studio Apartment (30 sqm) | $31,000 | $1,030 |
| City Apartment (60 sqm) | $62,000 | $1,033 |
| Modern Apartment (75 sqm) | $84,000 | $1,120 |
| Townhouse (150 sqm) | $294,000 | $1,960 |
| Luxury Villa (100 sqm) | $210,000 | $2,100 |
| Urban Plot (per sqm) | N/A | $21-$64 |
| Zanzibar Beachfront Land | N/A | $23-$450 |
Which neighborhoods offer the best value in Tanzania's major cities?
Dar es Salaam's most expensive neighborhoods include Masaki and Oyster Bay, where properties cost $1,400-$1,800 per square meter.
Up-and-coming areas in Dar es Salaam such as Mikocheni and Upanga offer moderate pricing at $800-$1,400 per square meter with good growth potential. Budget-friendly options include Tabata and Mbezi Mwisho at $500-$800 per square meter.
Zanzibar's premium locations including Stone Town, Paje, Nungwi, Kendwa, and Matemwe command $1,800-$3,700+ per square meter. Suburban and developing areas range $1,100-$2,200 per square meter, while beachfront properties reach $3,700-$5,000 per square meter.
Arusha's high-end expat areas like Arusha CBD, Usa River, and Moshono cost around $1,100 per square meter. Peripheral neighborhoods and suburbs offer budget options below $800 per square meter.
Dodoma's emerging areas including Nkuhungu and Kisasa provide affordable entry points with rapid appreciation potential, making them attractive for long-term investment strategies.
What are the typical unit sizes and how does price per sqm change with size?
Studio apartments typically range 25-35 square meters, while one-bedroom units span 35-60 square meters.
Two to three-bedroom apartments generally measure 60-150 square meters, offering family-friendly living spaces. Villas and larger family homes range from 100-250 square meters.
Smaller units command higher per square meter prices due to compact living demand in urban areas. Studios and one-bedroom apartments in city centers carry significant premiums per square meter compared to larger properties.
Larger family houses with 3+ bedrooms measuring 150+ square meters offer cheaper per square meter rates in suburban locations but cost more overall. This creates opportunities for different investment strategies based on target market and location preferences.
It's something we develop in our Tanzania property pack.
What are the all-in purchase costs for concrete property examples?
A 2-bedroom suburban apartment in Dar es Salaam measuring 75 square meters demonstrates typical purchase costs.
The list price totals $78,000 (75 square meters × $1,040 per square meter suburban rate). Transaction costs add approximately 7.5% or $5,850, including agent fees (5%), stamp duty (1%), and notary/legal fees (1.5%). The total all-in cost reaches $83,850, equivalent to approximately 210 million TZS.
A 1-bedroom city apartment in Zanzibar measuring 60 square meters shows higher-end costs. The list price amounts to $120,000 (60 square meters × $2,000 per square meter). Transaction costs increase to approximately 5% or $6,000, often higher for non-residents.
The total all-in cost reaches $126,000, equivalent to approximately 316 million TZS. These examples include all major expenses buyers typically encounter during property acquisition in Tanzania.
Don't lose money on your property in Tanzania
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What mortgage terms are available to residents versus foreigners?
Tanzanian residents enjoy more favorable mortgage terms with down payments of 10-20% and interest rates ranging 15-19%.
Resident mortgage terms extend up to 20-25 years and are available only in local currency. Banks typically require proof of stable local income and employment history.
Foreigners face stricter requirements including down payments of 20-30% and higher interest rates reaching up to 20%. Maximum loan terms for foreigners are shorter at 10-15 years, and banks require proof of residence and income sources.
For a $100,000 loan at 15% interest over 20 years, total payments reach approximately $208,000. This increases the effective cost per square meter by 60-70% compared to cash purchases, depending on the specific rate and term.
Foreign buyers should prepare for additional documentation requirements and potentially higher costs when pursuing mortgage financing in Tanzania.
Which areas offer the best quality of life for the price when buying to live?
Dar es Salaam's Mikocheni and Upanga neighborhoods provide excellent quality-for-price value with modern amenities and reasonable pricing.
Arusha's Usa River area offers green, quiet surroundings while maintaining central accessibility, making it attractive for lifestyle-focused buyers. The area combines natural beauty with practical convenience.
Zanzibar's Stone Town provides rich cultural experiences and walkability, though affordability improves significantly outside central luxury areas. The historic charm and cultural significance add intangible value.
Townhouses and modern 2-3 bedroom apartments in safe, accessible areas optimize quality for spending across all major cities. These properties typically offer the best balance of space, amenities, and location benefits.
Security, infrastructure quality, and proximity to essential services should factor heavily into quality-of-life assessments when choosing residential areas in Tanzania.
Which locations deliver the highest short-term rental yields and occupancy?
Zanzibar's Paje area generates impressive gross yields of 12-15% with occupancy rates of 70-80%.
Nightly rates in Zanzibar's prime coastal areas range $60-$220, depending on property type and specific location. The tourism-driven market supports consistent demand throughout peak seasons.
Prime Dar es Salaam locations achieve 6-9% yields with nightly rates of $50-$150 and occupancy near 80%. Business travel and urban tourism drive demand in the commercial capital.
Coastal properties consistently outperform urban locations for short-term rental returns due to Tanzania's growing tourism industry. Properties near beaches, national parks, and cultural attractions command premium rates.
It's something we develop in our Tanzania property pack.
Which areas provide the most stable long-term rental demand and returns?
Dar es Salaam's Mikocheni, Upanga, and Msasani areas deliver stable long-term rental demand from professionals and expatriates.
Arusha's central expat zones maintain consistent demand from international workers, NGO staff, and long-term business residents. The presence of international organizations creates steady tenant pools.
Dodoma areas near government campuses benefit from public sector employment stability and consistent rental demand. The capital city status drives ongoing housing needs for government workers.
Typical long-term rents range $400-$800 monthly for 1-2 bedroom city properties and $200-$400 monthly for suburban units. Large family houses in elite districts command $1,000-$2,500 monthly.
Areas with established infrastructure, reliable utilities, and proximity to employment centers provide the most risk-adjusted returns for long-term rental strategies.
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.
Where are the best opportunities for property flipping and resale?
Dar es Salaam benefits from infrastructure catalysts including the Dar Rapid Transit system and new Standard Gauge Railway connections.
Business park developments in Dar es Salaam and Dodoma create value appreciation opportunities near commercial zones. Government investment in these areas drives medium-term growth prospects.
Zanzibar's tourism surge continues creating appreciation potential in coastal and culturally significant areas. International visitor growth supports property value increases.
The best ROI opportunities involve upgrading older apartments and houses in up-and-coming areas like Mikocheni and Nkuhungu. Successful flips typically require 2-4 year holding periods with renovation budgets of $10,000-$30,000.
Land banking in peri-urban fringes offers longer-term appreciation potential as cities expand and infrastructure develops, though this requires patience and market timing skills.
How have property prices moved in Tanzania's key markets?
Tanzanian urban hot spots experienced 6-8% price increases over the past year (2024-2025), while rural areas saw more modest 3-5% growth.
Zanzibar's tourist zones demonstrated stronger performance with 10-13% annual increases driven by international demand and tourism recovery.
Over the past five years, Dar es Salaam's prime areas including Oyster Bay and Masaki appreciated 40-50%. Zanzibar city center properties surged 70% during the same period.
Base case forecasts project 5-7% annual growth continuing across major markets. Best case scenarios anticipate 10%+ growth in prime tourism areas and favored suburban locations.
Worst case projections suggest 0-2% growth if demand slows due to economic factors or reduced international interest. Historical trends support continued moderate appreciation in established markets.
How do Tanzania's prices compare with regional East African markets?
| City | Average per sqm (USD) | Rental Yield |
|---|---|---|
| Nairobi | $1,500-$2,000 | 5-7% |
| Dar es Salaam | $1,200 | 6-9% |
| Kampala | $1,100 | 7-10% |
| Kigali | $1,000 | 6-8% |
| Maputo | $1,050 | 7-8% |
| Port Louis | $2,000+ | 5-6% |
Dar es Salaam positions itself as mid-tier in pricing among comparable East African cities but leads for rental yield performance.
Nairobi commands the highest prices with lower yields, while Kampala offers strong yields in a growing but less mature market. Kigali provides steady, well-organized market conditions at smaller scale.
Port Louis represents the regional high-end with tourism-driven prices exceeding $2,000 per square meter. Maputo shows coastal characteristics with slow but steady growth patterns.
It's something we develop in our Tanzania property pack.
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.
Tanzania's property market offers diverse opportunities across different price points and investment strategies, from affordable suburban properties to luxury coastal developments.
Success in the Tanzanian real estate market requires understanding local market dynamics, legal requirements, and infrastructure development patterns that drive long-term value creation.
Sources
- TheAfricanvestor - House Price Tanzania
- TheAfricanvestor - Dar es Salaam Price Forecasts
- TheAfricanvestor - Tanzania Real Estate Market
- Tanzania Invest - Properties
- Expat Exchange - Real Estate in Arusha
- TheAfricanvestor - Tanzania Which Area
- TheAfricanvestor - Zanzibar Price Forecasts
- The Property Hub TZ - Understanding Property Prices
- CRDB Bank - Mortgage Loan
- Coldwell Banker TZ - Tanzania Real Estate Investment 2025