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As of September 2025, understanding rental costs in Dar es Salaam is essential for anyone considering investment or relocation to Tanzania's economic capital.
Average rents in Dar es Salaam range from $150 per month for basic suburban housing to over $2,900 for luxury city center apartments, with rental yields consistently achieving 6-9% annually across most property types.
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.
Dar es Salaam rental prices vary dramatically by location, with prime areas commanding $1,200-$2,900 monthly while suburban districts offer options from $150-$500 per month.
Current rental yields range from 5-9% for long-term properties and 8-12% for short-term rentals, making the city one of East Africa's most attractive investment destinations.
| Property Type | Prime Area Monthly Rent (USD) | Suburban Monthly Rent (USD) |
|---|---|---|
| Studio Apartment | $500-$800 | $150-$400 |
| 2-Bedroom Apartment | $700-$900 | $300-$700 |
| 3-Bedroom Apartment | $2,900+ | $1,200-$2,000 |
| Standalone House | $1,200-$2,000 | $500-$1,000 |
| Luxury Villa | $1,800+ | Not Available |
| Commercial Space | $15-$25/sqm | $8-$15/sqm |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the current average rental prices in Dar es Salaam by property type?
Average rental prices in Dar es Salaam vary significantly based on property type and location as of September 2025.
Studio apartments in prime city center locations command $500-$800 monthly, while the same units in suburban areas like Mbezi Beach or Kigamboni cost $150-$400 per month. Two-bedroom apartments range from $700-$900 in upscale neighborhoods to $300-$700 in more affordable districts.
Three-bedroom apartments show the most dramatic price differences, with luxury units in Oyster Bay, Masaki, and Upanga exceeding $2,900 monthly, while suburban alternatives cost $1,200-$2,000. Standalone houses typically rent for $1,200-$2,000 in prime areas and $500-$1,000 in suburban locations.
Luxury villas start at $1,800 monthly in premium neighborhoods, while commercial spaces command $15-$25 per square meter monthly in prime locations and $8-$15 per square meter in secondary areas.
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How do rental prices differ across Dar es Salaam's main neighborhoods?
Rental prices across Dar es Salaam neighborhoods reflect a clear hierarchy based on infrastructure, amenities, and expatriate demand.
The highest rents occur in prime expatriate neighborhoods including Oyster Bay, Masaki, and Upanga, where three-bedroom apartments exceed $2,900 monthly due to superior security, proximity to embassies, and established infrastructure. These areas attract diplomatic staff, international business executives, and affluent locals willing to pay premium rates.
Mid-tier neighborhoods like Mbezi Beach and central Kinondoni offer more moderate pricing, with one-bedroom units ranging $300-$500 monthly and family homes costing $1,200-$2,000. These districts provide good value for professionals seeking modern amenities without premium location costs.
Budget-friendly suburbs including Kigamboni, Tegeta, and Goba deliver the most affordable options, with standalone houses starting at $150-$400 monthly. These areas appeal primarily to local families and cost-conscious expatriates willing to accept longer commutes for significant savings.
The city center maintains intermediate pricing between prime and suburban areas, offering convenient access to business districts while remaining more affordable than exclusive residential enclaves.
What is the typical rent per square meter for different property types?
Rental rates per square meter in Dar es Salaam depend heavily on property type and neighborhood quality as of September 2025.
Residential apartments typically rent for $8-$25 per square meter monthly, with luxury units in prime areas commanding the higher end of this range. City center apartments average $12-$20 per square meter, while suburban properties generally cost $8-$15 per square meter.
Commercial properties show more variation, with prime office spaces in the central business district renting for $15-$25 per square meter monthly. Secondary commercial locations typically cost $8-$15 per square meter, making them attractive for smaller businesses and startups.
Standalone houses generally offer better value per square meter than apartments, particularly in suburban areas where larger plots provide more space at lower per-meter costs. Luxury villas in exclusive neighborhoods may exceed $20 per square meter due to premium finishes and private amenities.
These rates reflect current market conditions but can vary based on specific property features, lease terms, and negotiation outcomes between landlords and tenants.
What is the total monthly cost for tenants including all fees and utilities?
Total monthly housing costs in Dar es Salaam extend significantly beyond base rent when including utilities, fees, and maintenance charges.
Utility costs typically add $50-$150 monthly to rental expenses, covering electricity, water, gas, and garbage collection. Electricity represents the largest component, particularly for air-conditioned properties in Dar es Salaam's tropical climate.
Apartment maintenance fees range from $20-$80 monthly for standard buildings, increasing to $120 for luxury developments with pools, gyms, and comprehensive security systems. These fees cover common area maintenance, security services, and shared facility upkeep.
Local property taxes are typically included in rental agreements, with landlords responsible for government assessments. However, tenants should verify this arrangement during lease negotiations to avoid unexpected charges.
A typical example for a mid-tier city apartment would include $700 base rent, $80 utilities, and $40 maintenance fees, totaling $820 monthly. Premium properties can easily exceed $1,500 total monthly costs when including all ancillary expenses.
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How do mortgage payments compare with rental income for similar properties?
Mortgage costs versus rental income in Dar es Salaam show favorable dynamics for property investors as of September 2025.
The current price-to-rent ratio of approximately 45 indicates that purchasing property typically requires higher monthly payments than renting equivalent units. For a $150,000 property, monthly mortgage payments average $800-$1,200, while similar properties rent for $700-$1,000 monthly.
However, rental income from the same property type often covers 70-85% of mortgage costs, creating manageable cash flow requirements for investors. The break-even period typically occurs around five years, after which rental income exceeds mortgage obligations.
Rental yields of 5-9% annually on purchase prices make property ownership financially attractive despite higher initial monthly costs. Properties in emerging areas often achieve higher yields, while prime locations offer more stable but lower percentage returns.
These calculations assume standard financing terms and don't include potential property appreciation, which has averaged 20-23% over the past five years in Dar es Salaam's growing market.
What are typical rental price examples for different property categories?
Specific rental examples across Dar es Salaam's property categories illustrate the market's diversity as of September 2025.
| Property Type | Location | Monthly Rent (USD) |
|---|---|---|
| Studio Apartment | City Center | $650 |
| Studio Apartment | Kigamboni | $275 |
| 2-Bedroom Apartment | Masaki | $800 |
| 2-Bedroom Apartment | Mbezi Beach | $500 |
| 3-Bedroom House | Oyster Bay | $2,200 |
| 3-Bedroom House | Tegeta | $750 |
| Luxury Villa | Upanga | $2,800 |
What are the profiles of different renter categories and their spending patterns?
Dar es Salaam's rental market serves distinct tenant categories with varying preferences and spending capabilities.
Expatriate renters typically represent the highest-spending segment, preferring prime neighborhoods like Oyster Bay, Masaki, and Upanga where they pay $1,200-$2,900+ monthly for large apartments or houses. These tenants prioritize security, amenities like pools and gyms, and proximity to international schools and embassies.
Local professionals and families favor emerging districts and suburbs including Mbezi Beach, Kigamboni, Goba, and Tegeta for affordability, typically spending $150-$600 monthly. They often prioritize value over luxury amenities, seeking functional housing in safe neighborhoods with reasonable commute times.
Students and young professionals choose city center locations or mid-tier suburbs, spending $300-$900 monthly while focusing on proximity to universities and employment centers. They often share accommodations to reduce individual costs while maintaining convenient locations.
Family renters seek standalone houses or large apartments in tranquil suburban areas like Mbezi and Kinondoni, typically budgeting $1,200-$2,000 monthly for properties offering privacy, security, and child-friendly environments.
What are the vacancy rates across different areas and property types?
Vacancy rates in Dar es Salaam remain relatively low across most segments, indicating strong rental demand as of September 2025.
Overall residential vacancy rates hover around 5-7%, which property experts consider healthy and indicative of balanced supply and demand. This rate allows for normal tenant turnover without indicating oversupply concerns.
Prime districts including Oyster Bay, Masaki, and Upanga maintain vacancy rates below 4% due to consistent demand from expatriate and high-income local tenants. These areas benefit from limited new supply and strong corporate rental demand.
Emerging suburban areas experience slightly higher vacancy rates of 6-8%, reflecting moderate turnover as new developments come online. However, these rates remain within normal ranges and don't indicate market weakness.
Commercial properties show similar patterns, with prime office locations maintaining lower vacancy rates than secondary areas. The overall low vacancy environment supports continued rent growth and makes Dar es Salaam attractive for rental property investment.
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.
What are current rental yields and how do short-term rentals compare?
Rental yields in Dar es Salaam remain attractive compared to regional alternatives, offering investors strong returns across multiple property types.
Long-term rental properties typically generate 6-9% gross annual yields, with standard apartments in established neighborhoods achieving the middle of this range. Properties in emerging areas often exceed 9% yields due to lower purchase prices relative to rental income potential.
Short-term rentals through platforms like Airbnb can achieve 8-12% yields in central and up-and-coming areas, though they require more active management. Average annual short-term rental income reaches $8,000 with approximately 48% occupancy rates and $49 average daily rates.
Prime area properties typically deliver lower percentage yields (5-7%) but offer greater stability and appreciation potential. Suburban properties provide higher yields but may experience more tenant turnover and require longer marketing periods.
These yields compare favorably to bank deposit rates and make Dar es Salaam one of East Africa's most attractive rental investment destinations for both local and international investors.
How have rental prices and yields changed over recent years?
Dar es Salaam's rental market has experienced steady growth over both short and medium-term periods, reflecting the city's economic development.
Over the past year, average rental prices have increased 3-5% across most property categories, with premium properties showing stronger growth than budget segments. This moderate growth rate indicates healthy market conditions without concerning speculation or overheating.
The five-year trend shows more substantial growth, with rental prices increasing 20-23% since 2020. This growth reflects Tanzania's economic expansion, urbanization trends, and increasing foreign investment in the country's commercial capital.
Rental yields have remained relatively stable or slightly improved, particularly in suburban areas where demand has outpaced new supply. The combination of moderate rent growth and controlled price increases has maintained attractive investment returns.
These trends demonstrate Dar es Salaam's emergence as a mature rental market with sustainable growth patterns rather than speculative bubbles common in some developing markets.
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What are the forecasts for rental prices and yields?
Rental market forecasts for Dar es Salaam indicate continued growth across multiple time horizons based on fundamental economic drivers.
Over the next year, experts predict 3-7% rental price increases with yields remaining stable in the 6-9% range. This growth reflects ongoing urbanization, infrastructure development, and increasing foreign business presence in Tanzania's commercial capital.
The five-year outlook suggests continued rent appreciation driven by urban population growth, infrastructure improvements, and expanding middle-class demographics. Emerging districts are expected to see particularly strong growth as transportation links improve and new developments mature.
Long-term forecasts over the next decade remain positive, with persistent housing shortages, high domestic and international demand, and continued economic development supporting stable rent increases and solid yields. The city center and suburban areas are both expected to benefit from different growth drivers.
These projections assume continued political stability and economic growth, factors that have historically supported Tanzania's real estate market development.
How do Dar es Salaam rental rates compare with other regional cities?
Dar es Salaam's rental market compares favorably with other major East African cities, offering competitive yields and growth potential.
Current rental yields of 5-9% in prime areas place Dar es Salaam among the highest in East Africa, significantly exceeding rates in Nairobi, Kenya (5-7%), Lusaka, Zambia (4-6%), and even other Tanzanian cities like Arusha (4-6%).
Rental prices remain more affordable than Nairobi while offering similar amenities and business infrastructure. This price advantage attracts both residential tenants and commercial occupiers seeking cost-effective alternatives to Kenya's capital.
Compared to Zanzibar City, Dar es Salaam offers higher yields despite lower absolute rental prices, making it more attractive for investment-focused buyers. The mainland location also provides better access to Tanzania's broader economy and development opportunities.
The combination of competitive pricing, strong yields, and growth potential positions Dar es Salaam as one of East Africa's most attractive rental investment markets for both local and international investors seeking emerging market exposure.
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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 rental market offers compelling opportunities for both tenants and investors, with rental prices ranging from $150-$2,900 monthly depending on location and property type.
Current yields of 5-9% for long-term rentals and 8-12% for short-term properties, combined with steady 3-7% annual rent growth forecasts, make the city one of East Africa's most attractive real estate investment destinations.
Sources
- Coldwell Banker Tanzania - Dar es Salaam Rent Prices 2025
- TheAfricanVestor - Dar es Salaam Market Data Real Estate
- Coldwell Banker Tanzania - Ideal Rental Home in Tanzania Cities
- Lappet Faced Safaris - Cost of Living in Dar es Salaam
- TheAfricanVestor - Dar es Salaam Property
- TheAfricanVestor - Dar es Salaam Apartment Maintenance Fees
- Coldwell Banker Tanzania - Dar es Salaam Rental Yield 2025
- TheAfricanVestor - Dar es Salaam Price Forecasts
- MR Land Properties - Tanzania Real Estate Trends 2025
- Airbtics - Annual Airbnb Revenue in Dar es Salaam