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
As we look towards 2025, the real estate market in Dar es Salaam is poised for intriguing developments. Whether you're an investor, a potential homeowner, or simply curious about the region's economic landscape, understanding the market data is crucial.
What trends are emerging? How are prices shifting? What factors are driving these changes?
In this article, we'll delve into 12 key pieces of market data that will illuminate the current and future state of Dar es Salaam's real estate market.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Tanzania Property Pack
12 Market Data Points About the Real Estate Market in Dar es Salaam
Here is a detailed analysis of the real estate market in Dar es Salaam, covering average rents, yields, price per square meter (sqm) and square foot (sqft), and more.
- Average Rent for Apartments:
The average rent for a one-bedroom apartment in the city center of Dar es Salaam is approximately USD 500 to USD 800 per month. In the suburbs, this can range from USD 300 to USD 500 per month. These figures can vary based on the location, amenities, and condition of the property.
- Rental Yields:
Rental yields in Dar es Salaam are generally attractive, with average yields ranging from 6% to 8% annually. This makes it a potentially lucrative market for investors looking for rental income.
- Price Per Square Meter:
The average price per square meter for an apartment in the city center is approximately USD 1,200 to USD 1,800. In suburban areas, prices can range from USD 800 to USD 1,200 per square meter. These prices reflect the demand and development level in different areas.
- Price Per Square Foot:
Converting the price per square meter to square foot, the average price in the city center is about USD 111 to USD 167 per square foot, while in the suburbs, it ranges from USD 74 to USD 111 per square foot.
- Commercial Property Rents:
For commercial properties, the average rent in prime locations can range from USD 15 to USD 25 per square meter per month. In less central areas, this can drop to USD 8 to USD 15 per square meter per month.
- Land Prices:
Land prices in Dar es Salaam vary significantly based on location. In prime areas, prices can reach up to USD 200 per square meter, while in developing areas, they can be as low as USD 50 per square meter.
- Construction Costs:
The average construction cost in Dar es Salaam is approximately USD 300 to USD 500 per square meter. This includes materials, labor, and other associated costs, which can vary based on the quality and type of construction.
- Vacancy Rates:
Vacancy rates in the residential sector are relatively low, typically around 5% to 7%, indicating a healthy demand for housing. However, commercial properties may experience higher vacancy rates, especially in less developed areas.
- Property Taxes:
Property taxes in Dar es Salaam are generally low, with rates typically around 0.15% to 0.25% of the property value annually. This makes it an attractive market for property ownership.
- Mortgage Rates:
Mortgage rates in Tanzania are relatively high, often ranging from 15% to 20% annually. This can impact the affordability of purchasing property through financing.
- Development Trends:
There is a growing trend towards mixed-use developments in Dar es Salaam, combining residential, commercial, and retail spaces. This trend is driven by urbanization and the demand for convenient living spaces.
- Infrastructure Development:
Ongoing infrastructure projects, such as road expansions and public transport improvements, are expected to enhance property values in certain areas, making them more attractive for investment.
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What You Need to Know Before Investing in Dar es Salaam's Real Estate Market (2025)
What is the average property price per square meter in Dar es Salaam?
As of 2025, the average property price per square meter in Dar es Salaam is approximately USD 1,200.
This figure can vary significantly depending on the location, with prime areas like Oyster Bay and Masaki commanding higher prices.
Investors should consider these variations when evaluating potential returns on investment.
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How has the real estate market in Dar es Salaam grown over the past five years?
The real estate market in Dar es Salaam has experienced a growth rate of approximately 7% annually over the past five years.
This growth is driven by increasing urbanization and a growing middle class seeking residential properties.
Such trends indicate a robust market with potential for continued expansion.
Want to explore this further?
=> Is an apartment in Dar es Salaam a good-long term investment?
What are the rental yields like in Dar es Salaam?
Rental yields in Dar es Salaam are currently averaging around 6% to 8% annually.
These yields are attractive compared to other regional markets, making it a favorable destination for rental property investments.
However, yields can vary based on property type and location, so thorough market research is essential.
Which areas in Dar es Salaam are considered prime locations for real estate investment?
Prime locations in Dar es Salaam include areas such as Oyster Bay, Masaki, and Upanga.
These areas are popular due to their proximity to the city center, amenities, and expatriate communities.
Investors often target these locations for high-end residential and commercial developments.
What are the key factors driving demand in Dar es Salaam's real estate market?
Key factors driving demand include rapid urbanization, a growing expatriate community, and increased foreign direct investment.
The city's strategic location as a port and commercial hub also contributes to its attractiveness for real estate investment.
Additionally, government initiatives to improve infrastructure are enhancing the market's appeal.
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What is the expected population growth in Dar es Salaam by 2025?
Dar es Salaam's population is projected to reach approximately 7 million by 2025.
This growth is expected to fuel demand for housing and commercial spaces, impacting real estate prices and availability.
Investors should consider this demographic trend when planning long-term investments.
How does the regulatory environment affect real estate investment in Dar es Salaam?
The regulatory environment in Dar es Salaam is generally favorable, with recent reforms aimed at simplifying property registration and ownership processes.
However, investors should be aware of potential bureaucratic delays and ensure compliance with local laws and regulations.
Engaging with local legal experts can help navigate these complexities effectively.
Want to explore this further?
=> What are the legal requirements for buying property in Dar es Salaam?
What are the financing options available for real estate investment in Dar es Salaam?
Financing options in Dar es Salaam include traditional bank loans, mortgage facilities, and private equity investments.
Local banks offer competitive interest rates, typically ranging from 12% to 15% annually, depending on the borrower's creditworthiness.
Investors should explore various financing avenues to determine the most cost-effective solution for their needs.
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How does infrastructure development impact real estate values in Dar es Salaam?
Infrastructure development, such as road expansions and public transport improvements, significantly boosts real estate values in Dar es Salaam.
Areas with enhanced connectivity and access to amenities often see increased demand and higher property prices.
Investors should monitor ongoing and planned infrastructure projects to identify potential investment hotspots.
What are the risks associated with investing in Dar es Salaam's real estate market?
Risks include market volatility, regulatory changes, and potential political instability, which can affect property values and investment returns.
Investors should conduct thorough due diligence and consider diversifying their portfolios to mitigate these risks.
Engaging with local experts and staying informed about market trends can also help manage potential challenges.
What is the impact of foreign investment on Dar es Salaam's real estate market?
Foreign investment has been a significant driver of growth in Dar es Salaam's real estate market, contributing to increased demand and development.
Such investments often focus on high-end residential and commercial properties, influencing market dynamics and pricing.
Investors should be aware of the competitive landscape and potential opportunities arising from foreign participation.
How does the rental market compare to the sales market in Dar es Salaam?
The rental market in Dar es Salaam is robust, with steady demand from expatriates and local professionals seeking quality housing.
While the sales market is also active, rental properties often provide more immediate returns through consistent cash flow.
Investors should weigh the benefits of rental income against potential capital appreciation when deciding on their investment strategy.