Authored by the expert who managed and guided the team behind the Tanzania Property Pack
Yes, the analysis of Dar es Salaam's property market is included in our pack
If you're thinking about buying a property in Dar es Salaam, you probably want to know if January 2026 is the right time or if you should wait.
In this article, we break down the current housing prices in Dar es Salaam, the market signals, and what the data actually says about whether prices are fair or stretched.
We constantly update this blog post as new data comes in, so you always get the freshest picture of the Dar es Salaam property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Dar es Salaam.
So, is now a good time?
As of early 2026, Dar es Salaam is a "rather yes" for property buyers, especially if you focus on mid-market apartments and family houses in well-connected neighborhoods.
The strongest signal is that Dar es Salaam is not in a credit-fueled bubble, with mortgage debt at only 0.40% of GDP, which makes a dramatic crash unlikely and gives buyers room to negotiate.
Another strong signal is that high-end properties in areas like Masaki and Oysterbay have vacancy rates between 20% and 40%, which means sellers in that segment are more willing to cut deals.
Infrastructure projects like the Dar-Dodoma standard gauge railway and BRT corridor expansions are also creating real demand in specific neighborhoods, while mid-market rentals remain tight with low vacancy.
The best strategy in Dar es Salaam in 2026 is to target mid-priced apartments or standard family houses in commutable areas like Mikocheni, Sinza, or Kijitonyama for rental income, or to buy along BRT corridors for long-term appreciation.
This is not financial or investment advice, we do not know your personal situation, and you should always do your own research and consult with local professionals before making any property purchase decision.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
Is it smart to buy now in Dar es Salaam, or should I wait as of 2026?
Do real estate prices look too high in Dar es Salaam as of 2026?
As of early 2026, property prices in Dar es Salaam do not look dramatically overheated for most everyday buyers because the market is not driven by easy credit, with mortgage debt sitting at just 0.40% of GDP according to the Tanzania Mortgage Refinance Company.
One clear on-the-ground signal that supports this is the high-end segment, where properties in areas like Masaki and Oysterbay can sit on the market for months, showing that asking prices in luxury neighborhoods are stretched relative to what buyers are actually willing to pay.
Another signal comes from vacancy data: the Centre for Affordable Housing Finance in Africa reports that high-end vacancies in Dar es Salaam have climbed to 20% to 40%, while lower and mid-rent properties remain in high demand with minimal vacancy, which tells us that mid-market prices are more in line with fundamentals than luxury prices.
You can also read our latest update regarding the housing prices in Dar es Salaam.
Does a property price drop look likely in Dar es Salaam as of 2026?
As of early 2026, the likelihood of a broad property price crash in Dar es Salaam is low, though pockets of price softness are plausible in the high-end and expat-oriented segments where vacancies are elevated.
The estimated price change range we consider plausible for Dar es Salaam over the next 12 months is roughly minus 5% to plus 7%, with mid-market properties more likely to hold steady or grow modestly while luxury properties could see discounts of 5% to 10%.
The single most important macro factor that would increase the odds of a meaningful price drop in Dar es Salaam would be a sharp currency depreciation or a significant tightening of credit conditions, which would reduce purchasing power and dampen buyer confidence.
However, this scenario looks unlikely in the near term because the IMF's 2025 Article IV report describes Tanzania's macro outlook as stable with GDP growth projected around 6%, and the Bank of Tanzania confirms inflation is within target ranges.
Finally, please note that we cover the price trends for next year in our pack about the property market in Dar es Salaam.
Could property prices jump again in Dar es Salaam as of 2026?
As of early 2026, the likelihood of a renewed price surge across all of Dar es Salaam is medium, with selective price jumps more likely in specific neighborhoods benefiting from infrastructure improvements rather than a citywide boom.
The estimated upside price change we consider plausible for Dar es Salaam over the next 12 months is around 5% to 10% in well-located mid-market neighborhoods along major transport corridors, while the luxury segment is unlikely to see significant appreciation given current vacancy levels.
The single biggest demand-side trigger that could drive prices to jump in Dar es Salaam is the completion and expansion of major infrastructure projects like the BRT phases 3 and 4 along Bagamoyo Road and Nyerere Road, which would significantly reduce commute times and make currently undervalued neighborhoods more attractive.
Please also note that we regularly publish and update real estate price forecasts for Dar es Salaam here.
Are we in a buyer or a seller market in Dar es Salaam as of 2026?
As of early 2026, Dar es Salaam's residential property market is mildly buyer-leaning overall, though this varies by segment, with the high-end clearly favoring buyers while the mid-market for family housing can still lean toward sellers in popular neighborhoods.
While there is no official months-of-inventory statistic for Dar es Salaam, rental absorption data suggests that high-end properties can take up to 6 months to find tenants, which usually means a similar timeline for sales, giving buyers in that segment significant bargaining power.
In the mid-market and lower-rent segments, properties are often found in less than one month according to CAHF research, which means sellers in popular middle-class neighborhoods like Mikocheni, Sinza, or Kijitonyama still have reasonable leverage and less room for negotiation.
We have made this infographic to give you a quick and clear snapshot of the property market in Tanzania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Dar es Salaam as of 2026?
Are homes overpriced versus rents or versus incomes in Dar es Salaam as of 2026?
As of early 2026, homes in Dar es Salaam appear fairly priced in the mid-market segment when comparing purchase costs to achievable rents, but the high-end segment shows signs of overpricing given that rental yields there are compressed by high vacancies and difficulty finding tenants.
The estimated price-to-rent ratio in Dar es Salaam's mid-market suggests net rental yields around 8% according to CAHF fieldwork, which means a property should roughly be valued at about 12.5 times its annual net rent, a reasonable level for an emerging market with growth potential.
The price-to-income multiple in Dar es Salaam is challenging for most local households, which is why mortgage penetration remains at only 0.40% of GDP, but prices are supported by cash buyers, diaspora investment, and incremental building patterns rather than traditional mortgage-financed purchases.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Dar es Salaam.
Are home prices above the long-term average in Dar es Salaam as of 2026?
As of early 2026, mid-market property prices in Dar es Salaam appear roughly in line with their long-term trend, while high-end prices are likely above what current rental fundamentals justify based on the vacancy and re-letting evidence rather than a formal price index.
The estimated recent 12-month price change in Dar es Salaam has been around 5% to 7% for residential properties according to local market reports, which is consistent with the pre-pandemic pace and reflects steady urbanization-driven growth rather than speculative excess.
Looking at inflation-adjusted positioning, mid-market properties in Dar es Salaam have generally kept pace with inflation given that Tanzania's inflation has remained within the Bank of Tanzania's target range, while the high-end segment has shown softness with prime rents having declined significantly from their 2015 peaks.
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What local changes could move prices in Dar es Salaam as of 2026?
Are big infrastructure projects coming to Dar es Salaam as of 2026?
As of early 2026, the biggest infrastructure projects affecting Dar es Salaam property prices are the Dar-Dodoma standard gauge railway, which launched in 2024 as part of a $3.1 billion national investment, and the BRT phases 3 and 4 being developed along the Bagamoyo Road and Nyerere Road corridors.
The SGR is already operational and serving as a major connectivity upgrade, while BRT phase 3 is under construction with government pressure on contractors to complete on schedule, and phases 3 and 4 together are expected to significantly reduce commute times in neighborhoods like Msasani, Mikocheni, Kawe, Tegeta, and areas around Ilala over the next two to three years.
For the latest updates on the local projects, you can read our property market analysis about Dar es Salaam here.
Are zoning or building rules changing in Dar es Salaam as of 2026?
There is no single headline-grabbing zoning change being implemented across Dar es Salaam in January 2026, but the ongoing evolution of urban planning enforcement and infrastructure provision continues to shape which areas can densify and which remain constrained.
As of early 2026, the practical effect of gradual planning improvements in Dar es Salaam is to increase the relative value of well-serviced neighborhoods with clear roads, drainage, and utilities, while areas without these basics remain stuck at lower prices or face slower appreciation.
The areas most affected by these dynamics in Dar es Salaam include established inner neighborhoods like Upanga and parts of Kinondoni where denser forms are more feasible, as well as peripheral growth areas like parts of Kigamboni and the edges of Ubungo where changes in servicing can swing prices more dramatically.
Are foreign-buyer or mortgage rules changing in Dar es Salaam as of 2026?
As of early 2026, foreign-buyer rules in Tanzania remain structurally restrictive with non-citizens unable to hold freehold land and typically required to access property through derivative rights via the Tanzania Investment Centre, which creates friction and limits the potential for a foreign-buyer-driven price surge in Dar es Salaam.
The most relevant constraint for foreign buyers is the Land Act framework that restricts non-citizen land allocation, requiring investment registration and longer paperwork timelines, which affects both acquisition and eventual resale liquidity since your buyer pool is structurally limited.
On the mortgage side, Tanzania's mortgage market is growing from a small base with TMRC reporting steady coverage across 31 lending institutions, but interest rates of 15% to 20% and the shallow market depth of 0.40% of GDP mean that any rate cut will not immediately unleash huge mortgage demand in Dar es Salaam.
You can also read our latest update about mortgage and interest rates in Tanzania.
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.
Will it be easy to find tenants in Dar es Salaam as of 2026?
Is the renter pool growing faster than new supply in Dar es Salaam as of 2026?
As of early 2026, the balance between renter demand growth and new rental supply in Dar es Salaam favors landlords in the mid-market and affordable segments where demand is persistently strong with low vacancies, while the high-end segment shows the opposite pattern with supply outpacing the thin pool of willing tenants.
The clearest signal of renter demand in Dar es Salaam comes from the city's ongoing urbanization, with the World Bank's Tanzania Urbanization Review documenting rapid urban growth that structurally supports housing demand even when economic cycles cool.
On the supply side, the Tanzania Building Census 2022 shows that Dar es Salaam has substantial and diversified building stock with multi-unit housing distributed across many wards, meaning supply is not artificially constrained, but the high-end segment has overbuilt relative to demand while affordable housing remains undersupplied.
Are days-on-market for rentals falling in Dar es Salaam as of 2026?
As of early 2026, days-on-market for rentals in Dar es Salaam varies dramatically by segment: mid-market and affordable units in popular neighborhoods often find tenants in less than one month, while high-end expatriate-oriented properties can sit vacant for up to 6 months according to CAHF research.
The difference in days-on-market between best areas and weaker areas in Dar es Salaam is stark: in well-connected middle-class neighborhoods like Mikocheni, Sinza, and Kijitonyama where local professional demand is strong, rentals move quickly, while premium expat-facing areas like Masaki and Oysterbay face longer vacancy periods.
One common reason days-on-market falls quickly in certain parts of Dar es Salaam is undersupply relative to demand in the affordable and mid-market brackets, where the combination of strong urbanization, limited formal mortgage access, and a large working population creates consistent rental demand that absorbs available units rapidly.
Are vacancies dropping in the best areas of Dar es Salaam as of 2026?
As of early 2026, vacancy trends in Dar es Salaam's best-performing rental areas show a split: neighborhoods with strong local professional demand like Mikocheni, Sinza, Kijitonyama, and parts of Ubungo maintain low vacancy rates, while the traditionally "best" high-end areas like Masaki and Oysterbay are actually seeing elevated vacancies of 20% to 40%.
The estimated current vacancy rate in mid-market neighborhoods that serve local professionals is significantly lower than the citywide average, while the premium expatriate-focused areas that command the highest rents show vacancy rates that CAHF estimates at 20% to 40%, a troubling level for landlords in that segment.
One practical sign for landlords that certain areas are tightening first in Dar es Salaam is when tenants in mid-market neighborhoods start paying rent increases without negotiation or renewing leases early to lock in their unit, behaviors that indicate they perceive finding an equivalent alternative as difficult.
By the way, we've written a blog article detailing what are the current rent levels in Dar es Salaam.
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Am I buying into a tightening market in Dar es Salaam as of 2026?
Is for-sale inventory shrinking in Dar es Salaam as of 2026?
As of early 2026, we cannot claim a precise inventory change figure for Dar es Salaam because there is no centralized listings database, but the available evidence suggests that mid-market inventory is not dramatically shrinking while high-end inventory is not tight at all given the elevated vacancy signals.
The closest proxy to months-of-supply in Dar es Salaam comes from rental absorption data: if mid-market rentals fill in less than a month and high-end rentals take up to 6 months, we can reasonably infer similar patterns for sales, meaning the mid-market is relatively balanced while the high-end effectively has excess inventory.
Are homes selling faster in Dar es Salaam as of 2026?
As of early 2026, the estimated median time-to-sell for homes in Dar es Salaam depends heavily on segment and pricing: mid-market properties in popular neighborhoods with realistic pricing can sell within one to three months, while premium properties may sit for six months or longer if priced above what the thin buyer pool will accept.
We do not have official year-over-year data on median days-on-market for Dar es Salaam sales, but based on rental market dynamics and local agent feedback, there is no evidence of a dramatic speedup or slowdown across the board, with the market showing segment-specific patterns rather than a uniform trend.
Are new listings slowing down in Dar es Salaam as of 2026?
As of early 2026, we are not confident in providing a precise year-over-year change in new for-sale listings in Dar es Salaam because there is no centralized listings database, though the Building Census evidence suggests that underlying housing stock continues to expand across multiple wards.
The seasonal pattern for new listings in Dar es Salaam is less pronounced than in markets with distinct winter and summer cycles, though there tends to be some slowdown around major holidays and Ramadan periods, and we have no evidence that current levels are unusually low relative to historical norms.
Is new construction failing to keep up in Dar es Salaam as of 2026?
As of early 2026, there is a structural housing challenge in Dar es Salaam where affordable and mid-market supply struggles to keep pace with demand from a growing urban population, while the high-end segment has actually overbuilt relative to the thin pool of buyers and tenants willing to pay premium prices.
The Building Census 2022 shows that Dar es Salaam has substantial multi-unit housing stock distributed across many councils, and construction activity continues at a healthy pace, but the mismatch is more about price segmentation than absolute volume: builders find it easier to target higher-margin premium units than affordable housing.
The single biggest bottleneck limiting new construction in the affordable segment of Dar es Salaam is the combination of high land costs in accessible locations, limited formal financing for developers targeting lower price points, and infrastructure constraints that make it expensive to develop peripheral areas without government investment in roads and utilities.
We made this infographic to show you how property prices in Tanzania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Dar es Salaam as of 2026?
Is resale liquidity strong enough in Dar es Salaam as of 2026?
As of early 2026, resale liquidity in Dar es Salaam is strongest for mid-priced apartments and standard family houses in established, commutable areas where the buyer pool is widest and includes both local professionals and some diaspora investors, while liquidity is weaker for luxury properties targeting the thin expat market.
The estimated median days-on-market for well-priced resale homes in popular mid-market Dar es Salaam neighborhoods is roughly one to three months based on rental absorption patterns as a proxy, which compares reasonably to emerging market benchmarks, though properties priced above market can sit for six months or more.
One property characteristic that most improves resale liquidity in Dar es Salaam is location along or near major transport corridors like the BRT routes or in neighborhoods with reliable utilities, good security, and established community infrastructure, as these factors expand the pool of willing buyers significantly.
Is selling time getting longer in Dar es Salaam as of 2026?
As of early 2026, selling time in Dar es Salaam has not dramatically changed compared to recent years according to local agent feedback, though the high-end segment continues to face extended selling periods while mid-market properties with realistic pricing move within their historical timeframes.
The estimated current median days-on-market range across most listings in Dar es Salaam spans from roughly one month for well-priced mid-market properties in sought-after neighborhoods to six months or more for luxury properties or those with unrealistic asking prices.
One clear reason selling time can lengthen in Dar es Salaam is affordability pressure combined with the structural constraints on foreign buyers, which means that sellers who price above what the local buyer pool can afford will wait a long time unless they are willing to negotiate significant discounts.
Is it realistic to exit with profit in Dar es Salaam as of 2026?
As of early 2026, the likelihood of selling with a profit in Dar es Salaam is medium to high if you buy at a sensible price in a well-located mid-market property and hold for at least four to five years, but short-term flips are difficult given transaction costs and the absence of rapid price appreciation.
The estimated minimum holding period in Dar es Salaam that most often makes exiting with profit realistic is four to five years, which allows enough time for the 5% to 7% annual appreciation to compound and offset the round-trip transaction costs.
The estimated total round-trip cost drag in Dar es Salaam, including buying costs like stamp duty, registration, legal fees, and agent commissions, plus selling costs, is roughly 10% to 15% of property value, which translates to approximately TZS 50 to 75 million on a TZS 500 million property (around $20,000 to $30,000 USD or 18,000 to 27,000 EUR).
One clear factor that most increases profit odds in Dar es Salaam is buying in neighborhoods with improving infrastructure access, particularly along BRT corridors or near the SGR stations, where you can benefit from both rental income during the holding period and capital appreciation as connectivity improvements materialize.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Dar es Salaam, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bank of Tanzania Monetary Policy Statement | The central bank's official view on inflation, growth, and monetary policy. | We used it to anchor macro conditions that drive mortgage pricing and buyer confidence. It provided our baseline "2026 backdrop" for Dar es Salaam. |
| World Bank Tanzania Macro Poverty Outlook | The World Bank compiles macro data with transparent methodology. | We used it to confirm monetary policy direction and interest-rate environment. It served as an external cross-check against the Bank of Tanzania. |
| Tanzania Mortgage Refinance Company | TMRC aggregates mortgage market data from lenders across Tanzania. | We used it to size the mortgage market and assess bubble risk in Dar es Salaam. It helped us understand financing constraints for local buyers. |
| CAHF Rental Housing Supply Ecosystems | CAHF is a widely cited pan-African housing finance research institution. | We used it for rental price bands, vacancy rates, and time-to-relet data. It helped distinguish mid-market stability from high-end oversupply. |
| Tanzania Building Census 2022 | An official government building stock census with recent data. | We used it to ground supply reality in Dar es Salaam. It helped us understand where multi-unit buildings are concentrated. |
| Land Act (Tanzania) | The core statute governing land rights and non-citizen restrictions. | We used it to accurately describe legal constraints on foreign buyers. It helped frame demand risk and buyer pool limitations in Dar es Salaam. |
| Tanzania Investment Act 2022 | The official investment framework for investor certification. | We used it to explain how foreigners acquire land rights. It highlighted paperwork and timeline risks affecting property transactions. |
| IMF 2025 Article IV Staff Report | The IMF provides rigorous country surveillance and macro analysis. | We used it to cross-check growth and inflation outlook for Tanzania. It served as our stress-test lens for Dar es Salaam property scenarios. |
| Reuters SGR Coverage | Reuters is a high-standard global newsroom with fact-checked reporting. | We used it to identify major connectivity improvements tied to Dar es Salaam. It supported our infrastructure tailwind case for property values. |
| TanzaniaInvest BRT Coverage | A mainstream business outlet reporting project agreements with named institutions. | We used it to map likely accessibility premiums along key corridors. It provided project status context for Bagamoyo Road and Nyerere Road areas. |
| World Bank Tanzania Urbanization Review | A large evidence base on Tanzania's urban growth and housing constraints. | We used it to explain why Dar es Salaam housing demand is structurally supported. It helped frame long-run demand versus short-run pricing risk. |
| African Cities Research Consortium | A credible research consortium focused on African cities. | We used it to add Dar-specific context on city growth patterns. It helped us avoid generic emerging market assumptions. |
| City Profiling Report 2025 Dar es Salaam | A dedicated city profiling report compiling demographics and urban data. | We used it to triangulate demand drivers across the metro area. It informed which neighborhoods benefit most from mobility upgrades. |
| TanzaniaInvest Real Estate Section | A business-focused outlet tracking property market developments. | We used it for price trend context and development news. It provided directional insights on Dar es Salaam price movements and rental yields. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Tanzania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Related blog posts
- Is now a good time to invest in property in Dar es Salaam?