All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.
Yes, the analysis of Dar es Salaam's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Oyster Bay? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Masaki or Upanga where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Dar es Salaam Property Pack.
Will property prices increase in Dar es Salaam in 2025?
Yes, property prices in Dar es Salaam are expected to rise in 2025, driven by a combination of economic growth and urban development.
Backed by our fresh, in-depth market analysis, we’re confident that Dar es Salaam remains a promising city for both domestic and international investors.
While there are challenges like inflation and infrastructure constraints, the main drivers behind Dar es Salaam’s price growth are strong and persistent.
Demand, especially in the rapidly developing areas, continues to outpace supply, making significant price drops unlikely. Additionally, Dar es Salaam's role as a major economic hub in Tanzania continues to attract buyers and investors.
Signals pointing to a property price increase in Dar es Salaam
Here are some factors suggesting prices could increase:
The ongoing economic growth in Tanzania is expected to continue into 2025, boosting disposable incomes and increasing the demand for property in Dar es Salaam.
Urbanization trends are accelerating, with more people moving to Dar es Salaam for job opportunities, which is likely to increase demand for housing.
Government initiatives aimed at improving infrastructure, such as road and public transport projects, are expected to enhance connectivity and make certain areas more attractive to buyers.
The expansion of the port and related industries is likely to create more jobs and attract more people to the city, increasing the demand for residential and commercial properties.
Foreign investment in real estate is on the rise, with international investors showing increased interest in the Tanzanian market, particularly in Dar es Salaam.
The development of new residential and commercial projects is expected to continue, attracting more buyers and investors to the city.
The growing middle class in Tanzania is likely to increase demand for quality housing, pushing up property prices in desirable areas.
Signals pointing to a property price decrease in Dar es Salaam
Here are some factors suggesting prices could fall:
Inflationary pressures could erode purchasing power, making it more difficult for potential buyers to afford property.
Interest rates may rise, making mortgages more expensive and potentially reducing the number of people able to buy property.
Infrastructure challenges, such as traffic congestion and inadequate public services, could deter potential buyers from investing in certain areas of the city.
Get fresh and reliable information about the market in Tanzania
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
If property prices go up in Dar es Salaam, how much would they increase by?
If real estate prices in Dar es Salaam were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Dar es Salaam appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in Masaki for 200,000,000 TZS today, don't be surprised if it's priced between 206,000,000 and 214,000,000 TZS this time next year.
To give you a better understanding, here is a table that shows 7 types of Dar es Salaam real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (TZS) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment (60 sqm / 646 sqft) | 150,000,000 TZS | 154,500,000 TZS | 157,500,000 TZS | 160,500,000 TZS |
| Modern Apartment (75 sqm / 807 sqft) | 250,000,000 TZS | 257,500,000 TZS | 262,500,000 TZS | 267,500,000 TZS |
| Luxury Villa (100 sqm / 1,076 sqft) | 500,000,000 TZS | 515,000,000 TZS | 525,000,000 TZS | 535,000,000 TZS |
| Studio (30 sqm / 323 sqft) | 80,000,000 TZS | 82,400,000 TZS | 84,000,000 TZS | 85,600,000 TZS |
| Loft (80 sqm / 861 sqft) | 300,000,000 TZS | 309,000,000 TZS | 315,000,000 TZS | 321,000,000 TZS |
| Townhouse (150 sqm / 1,615 sqft) | 600,000,000 TZS | 618,000,000 TZS | 630,000,000 TZS | 642,000,000 TZS |
| Investment Property (50 sqm / 538 sqft) | 200,000,000 TZS | 206,000,000 TZS | 210,000,000 TZS | 214,000,000 TZS |
Everything you need to know is included in our Property Pack for Dar es Salaam
If real estate prices go up in Dar es Salaam, which areas are likely to see the biggest increases?
Today, people who want to move to Dar es Salaam seek a blend of traditional charm and modern conveniences, which Masaki offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Mikocheni has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Dar es Salaam market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Masaki | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Oyster Bay | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Dar es Salaam. |
| Mikocheni | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Upanga | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Kigamboni | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Kariakoo | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Msasani | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Kijitonyama | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Sinza | Medium-High | Its proximity to central Dar es Salaam, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Tabata | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Mbezi Beach | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| City Center | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Dar es Salaam
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Dar es Salaam?
In 2025, Dar es Salaam real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Dar es Salaam are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In bustling cities like Dar es Salaam, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Dar es Salaam's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
Make a profitable investment in Tanzania
Better information leads to better decisions. Save time and money. Download our guide.
