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Property prices in Dar es Salaam are experiencing significant growth, with residential properties averaging USD 1,200 per square meter as of June 2025. The market has maintained a steady 7% annual growth rate over the past five years, driven by rapid urbanization, infrastructure development, and strong foreign investment.
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Dar es Salaam's property market continues its upward trajectory in 2025, with prices rising 7% annually and prime neighborhoods like Mikocheni seeing values between USD 1,000-1,400 per square meter.
Infrastructure projects including the Dar Rapid Transit system and Standard Gauge Railway are creating new investment hotspots, while rental yields remain attractive at 6-9% in prime areas.
| Key Metric | Current Value (June 2025) | Change from 2024 |
|---|---|---|
| Average residential price per sqm | USD 1,200 | +7% increase |
| Prime area prices (Oyster Bay, Masaki) | USD 1,400-1,800/sqm | +8-10% increase |
| Rental yields | 6-9% annually | Stable |
| Occupancy rates | 85-90% | +2% improvement |
| Inflation rate | 6.5% | Down from 8% peak |
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.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the current average property prices in Dar es Salaam as of June 2025?
The average price per square meter for residential property in Dar es Salaam stands at USD 1,200 as we reach mid-2025.
Prime neighborhoods command significantly higher prices, with Oyster Bay and Masaki seeing values between USD 1,400 and USD 1,800 per square meter. These areas remain the most sought-after locations for both expatriates and wealthy Tanzanians, featuring modern amenities, proximity to international schools, and ocean views.
Emerging neighborhoods offer more affordable options, with areas like Upanga and parts of Mikocheni ranging from USD 800 to USD 1,200 per square meter. Suburban and peri-urban areas present even lower entry points, typically between USD 500 and USD 800 per square meter, making them attractive for first-time buyers and investors seeking higher rental yields.
The market shows clear stratification based on location, with coastal properties and those near the city center commanding premium prices. Infrastructure development continues to influence pricing, with areas near the Dar Rapid Transit routes experiencing above-average appreciation.
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How much have property prices increased in Dar es Salaam over the past 12 months?
Property prices in Dar es Salaam have increased by approximately 7% over the past 12 months, maintaining the steady growth trend observed over the past five years.
This consistent appreciation reflects strong market fundamentals, including rapid urbanization, a growing middle class, and significant infrastructure investments. The 7% annual growth rate outpaces inflation, which moderated to 6.5% by September 2024 after peaking at 8% mid-year.
| Property Type | 12-Month Price Change | Key Growth Drivers |
|---|---|---|
| Luxury apartments (Oyster Bay/Masaki) | +8-10% | Expatriate demand, limited supply, premium amenities |
| Mid-range apartments (Mikocheni/Upanga) | +7-8% | Middle-class growth, transport links, gentrification |
| Affordable housing (suburban) | +5-6% | First-time buyers, government initiatives |
| Land (peri-urban) | +10-15% | Future development potential, infrastructure expansion |
| Commercial properties | +8-9% | Foreign investment, business expansion |
| Mixed-use developments | +9-11% | Modern lifestyle demand, investment appeal |
| Beachfront properties | +12-15% | Scarcity, tourism growth, luxury market |
The strongest growth occurred in beachfront and luxury properties, driven by limited supply and increasing demand from both foreign buyers and wealthy locals. Mixed-use developments also saw substantial appreciation as they cater to changing lifestyle preferences.
Despite the 2024 fuel price hike that temporarily pushed inflation to 8%, the property market remained resilient, with construction costs being passed on to buyers rather than dampening demand significantly.
Which neighborhoods in Dar es Salaam are experiencing the fastest property price growth in 2025?
Mikocheni emerges as the fastest-growing neighborhood in Dar es Salaam, with property prices ranging between USD 1,000 and USD 1,400 per square meter in 2025.
This rapid appreciation in Mikocheni stems from ongoing gentrification, new transport links including proximity to the Dar Rapid Transit system, and its strategic location near major business hubs. The area attracts young professionals and middle-income families seeking modern amenities at more accessible prices than traditional premium neighborhoods.
Masaki and Oyster Bay continue their strong performance, particularly for luxury properties catering to expatriates and high-net-worth individuals. These established neighborhoods benefit from their coastal locations, mature infrastructure, and proximity to international schools and diplomatic quarters.
Emerging hotspots include peri-urban corridors like Mkuranga and Kisarawe, where land prices have surged 10-15% annually. These areas benefit from new infrastructure projects, planned industrial parks, and anticipated urban expansion, making them attractive for long-term investors.
Upanga and the Msasani Peninsula also show robust growth, driven by their central locations and ongoing redevelopment projects. These neighborhoods offer a balance between accessibility and lifestyle amenities, appealing to both residential buyers and rental investors.
What are the property price forecasts for Dar es Salaam through 2026?
Property prices in Dar es Salaam are projected to increase by 6-8% annually through 2026, according to local real estate experts and market analysts.
Several major infrastructure projects will drive this growth, including the completion of additional Dar Rapid Transit phases, Standard Gauge Railway connections, and port expansion. These developments will improve accessibility and create new investment corridors, particularly benefiting areas along transport routes.
The residential market is expected to maintain steady appreciation, with luxury properties in prime locations potentially seeing 8-10% annual growth. Mid-range properties should appreciate by 6-7% annually, while affordable housing segments may see 5-6% growth as government initiatives increase supply.
Commercial real estate shows even stronger prospects, with projected annual growth of 8-12% driven by foreign direct investment and expanding business activities. Mixed-use developments combining retail, office, and residential components are particularly well-positioned for above-average appreciation.
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How did the 2024 fuel price hike and inflation spike impact Dar es Salaam's property market?
The 2024 fuel price hike pushed Dar es Salaam's inflation rate to 8% year-on-year by mid-2024, higher than the national average, before moderating to 6.5% by September 2024.
This inflation spike directly impacted construction costs, with developers reporting 10-15% increases in material and transportation expenses. Rather than stalling the market, these increased costs were largely passed on to buyers, contributing to the overall price appreciation seen across all property segments.
The higher cost of living temporarily slowed demand among lower-income buyers, but the luxury and mid-range segments remained resilient. Foreign buyers and investors, often dealing in stronger currencies, were less affected by local inflation and continued driving demand in premium areas.
By early 2025, the market had largely absorbed these inflationary pressures, with demand returning to pre-spike levels. The temporary slowdown in some segments actually created buying opportunities for well-capitalized investors, who are now seeing accelerated returns as the market normalizes.
Long-term investors remained confident throughout this period, recognizing that Dar es Salaam's fundamental growth drivers – urbanization, infrastructure development, and economic expansion – remain intact despite short-term economic fluctuations.
What types of properties are seeing the biggest price surges in Dar es Salaam?
Beachfront properties lead the market with 12-15% annual price increases, driven by their scarcity and appeal to luxury buyers and tourism investors.
Mixed-use developments combining residential, retail, and office spaces are experiencing 9-11% annual appreciation. These properties appeal to modern lifestyle preferences and offer multiple revenue streams for investors, making them particularly attractive in the current market.
Luxury apartments in established neighborhoods like Oyster Bay and Masaki continue seeing 8-10% annual growth. The limited supply of high-quality properties in these areas, combined with steady expatriate and high-net-worth demand, ensures consistent appreciation.
Land in peri-urban areas represents another high-growth segment, with 10-15% annual increases. Investors anticipate future development as the city expands, particularly in areas slated for infrastructure improvements or near planned industrial zones.
Surprisingly, well-located commercial properties are also surging, with 8-9% annual growth driven by expanding businesses and foreign investment. Modern office buildings and retail spaces in prime locations command premium prices and strong rental yields.
How does foreign investment influence property prices in Dar es Salaam?
Foreign investment serves as a major catalyst for Dar es Salaam's property price growth, particularly in the commercial and luxury residential sectors.
International companies establishing regional headquarters or expanding operations in Tanzania drive demand for modern office spaces and high-end residential properties for their expatriate staff. This creates a multiplier effect, supporting both direct property purchases and the rental market in premium neighborhoods.
Chinese, Middle Eastern, and European investors have shown particular interest in large-scale development projects, including mixed-use complexes and industrial parks. These investments not only add to the property supply but also improve overall market standards and infrastructure.
The government's supportive policies toward foreign investment, including streamlined procedures and investment incentives, continue attracting international capital. While foreign ownership of land remains restricted, various structures allow international investors to participate meaningfully in the property market.
This foreign investment influx has raised property values in prime areas by an estimated 15-20% over the past three years, creating both opportunities and affordability challenges for local buyers.
What role do government infrastructure projects play in Dar es Salaam's property price trends?
Major government infrastructure projects are fundamentally reshaping Dar es Salaam's property market, with areas near new transport links seeing 20-30% higher appreciation rates than the city average.
The Dar Rapid Transit system stands out as the most impactful project, with properties within walking distance of BRT stations commanding 15-25% premiums compared to similar properties in less accessible areas. As new phases are completed, previously undervalued neighborhoods are experiencing rapid gentrification and price appreciation.
Port expansion projects are creating ripple effects throughout the eastern districts, with industrial and mixed-use properties near the port seeing exceptional growth. The improved logistics capabilities attract businesses, driving both commercial and residential demand in surrounding areas.
The Standard Gauge Railway development promises to further transform the property landscape, with areas along the planned route already seeing speculative buying and land banking. Properties near future stations are projected to appreciate 30-40% above market rates once the railway becomes operational.
These infrastructure investments create a virtuous cycle: improved accessibility attracts residents and businesses, driving property demand and justifying further development, which in turn supports continued price appreciation.
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.
What are the current rental yields and occupancy rates in Dar es Salaam?
Dar es Salaam offers attractive rental yields ranging from 6% to 9% annually in prime areas, with occupancy rates maintaining a healthy 85-90% average.
The highest yields come from well-managed properties in emerging neighborhoods like Mikocheni and Upanga, where purchase prices remain moderate while rental demand stays strong. Investors in these areas report yields of 7-9%, particularly for furnished apartments targeting young professionals.
Luxury properties in Oyster Bay and Masaki typically yield 6-7%, lower than emerging areas but offering more stable, premium tenants including expatriates and corporate leases. These properties benefit from longer lease terms and lower vacancy rates.
The strong rental market reflects Dar es Salaam's demographics: a growing population of young professionals, international workers, and students who prefer renting. High property prices relative to local incomes also push many middle-class residents toward rentals rather than ownership.
Short-term rentals and serviced apartments represent a growing segment, with yields potentially exceeding 10% for well-located properties. However, this market requires more active management and faces increasing competition.
How do Dar es Salaam property prices compare to other major East African cities in 2025?
Dar es Salaam sits in the middle of East African property markets, more expensive than Kigali but significantly cheaper than Nairobi.
With average prices of USD 1,200 per square meter, Dar es Salaam costs about 14-16% more than Kigali, where similar properties average around USD 1,000 per square meter. This premium reflects Tanzania's larger economy and Dar es Salaam's status as a major commercial hub.
| City | Avg Price/sqm (USD) | Rental Yields | Market Characteristics |
|---|---|---|---|
| Nairobi | 1,500-2,000 | 5-7% | Most mature market, highest prices, lower yields |
| Dar es Salaam | 1,200 | 6-9% | Rapid growth, strong yields, infrastructure boom |
| Kampala | 1,100 | 7-10% | High yields, growing market, less developed |
| Kigali | 1,000 | 6-8% | Organized market, steady growth, smaller scale |
| Addis Ababa | 900 | 5-7% | Large market, regulatory challenges |
Nairobi remains the regional price leader, with properties costing 25-65% more than Dar es Salaam. However, Dar es Salaam offers better rental yields and growth potential, making it attractive for investors seeking both capital appreciation and income.
Compared to 2020, Dar es Salaam has narrowed the gap with Nairobi while extending its premium over other regional cities, reflecting its emergence as a major investment destination.
How have property prices in Dar es Salaam changed compared to 2020 and 2010?
Property prices in Dar es Salaam have shown remarkable growth, increasing approximately 40% since 2020 and more than doubling since 2010.
In 2020, average residential property prices stood around USD 850-900 per square meter, meaning current prices of USD 1,200 represent a compound annual growth rate of 7% over the five-year period. This steady appreciation outpaced inflation and positioned real estate as one of the best-performing asset classes in Tanzania.
The transformation since 2010 is even more dramatic. While precise data from that period is limited, market estimates suggest prices have increased 150-200% over the 15-year period. This reflects Dar es Salaam's evolution from a relatively underdeveloped market to a sophisticated real estate sector attracting international investment.
Key drivers of this long-term appreciation include massive infrastructure improvements, rapid urbanization with the city's population nearly doubling since 2010, emergence of a substantial middle class, and increased foreign investment following regulatory reforms.
The market has also become more stratified, with luxury properties seeing even higher appreciation rates while affordable housing struggles to keep pace with demand. Overall, property owners who bought in 2010 or 2020 have seen substantial returns on their investments.
What is the outlook for land prices in Dar es Salaam's peri-urban areas?
Land prices in Dar es Salaam's peri-urban areas are surging, with annual increases of 10-15% driven by urban expansion and infrastructure development.
Districts like Mkuranga and Kisarawe lead this growth, benefiting from new road networks, planned industrial parks, and proximity to the expanding city. Investors anticipate these areas will be absorbed into the greater Dar es Salaam metropolitan area within the next decade, driving speculative buying.
The government's infrastructure push, including road improvements and utility extensions, makes previously inaccessible land viable for development. Areas within 30-40 kilometers of the city center that lacked basic services five years ago now attract serious developer interest.
For more insights on land investment opportunities, refer to our Tanzania property pack.
Smart investors focus on areas near confirmed infrastructure projects or along major transport corridors. However, due diligence remains critical, as land ownership issues and unclear titles can complicate transactions in these developing areas.
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.
As we reach mid-2025, Dar es Salaam's property market shows clear upward momentum across all segments. With annual growth rates of 7% for residential properties and even higher for commercial and luxury segments, the market demonstrates resilience despite temporary challenges like the 2024 inflation spike.
Major infrastructure projects, strong rental yields of 6-9%, and continued foreign investment support our outlook for sustained price appreciation through 2026 and beyond. While Dar es Salaam properties cost more than some regional alternatives, they offer better growth potential and stability than many comparable markets. The answer is clear: Yes, property prices in Dar es Salaam are going up.
Sources
- Dar es Salaam Real Estate Market Data
- Tanzania Property Investment Areas
- Understanding Property Prices in Tanzania
- Tanzania Real Estate Forecasts
- Tanzania Property Market Trends
- Dar es Salaam Real Estate Investment Opportunity
- Profitable Land Investment in Tanzania
- Commercial Real Estate Tanzania Statistics
- Dar es Salaam Average Apartment Prices
- Cost of Living Comparison: Kigali vs Dar es Salaam