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
Dar es Salaam's property market continues to grow in 2026, driven by strong population pressure and major infrastructure investments like the BRT expansion.
This article breaks down current housing prices in Dar es Salaam, recent trends, and what you can realistically expect over the next 5 to 10 years.
We constantly update this blog post to reflect the latest data and market shifts.
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.
Insights
- The practical midpoint for a property purchase in Dar es Salaam in 2026 sits around TZS 280 million, which is roughly USD 105,000 or EUR 97,000.
- Dar es Salaam property prices grew by an estimated 8% in nominal terms over the past 12 months, outpacing the city's mid-single-digit inflation rate.
- Kigamboni has become a price growth leader in Dar es Salaam thanks to the Kigamboni Bridge dramatically cutting commute times to the CBD.
- Townhouses and duplexes in Dar es Salaam are appreciating faster than other property types because they offer security and family practicality at lower prices than villas.
- Mortgage rates in Tanzania remain high, which limits how fast prices can rise before affordability becomes a barrier for middle-market buyers.
- BRT corridor expansions are reshaping Dar es Salaam's property map, with areas near new stations seeing faster price increases than distant neighborhoods.
- Prime coastal areas like Masaki and Oyster Bay often feel overpriced relative to space, but their scarcity keeps demand steady among expats and high-income buyers.
- Dar es Salaam's population of about 5.4 million creates persistent housing demand that supports a long-term upward trend in property values.
- Over the next 5 years, Dar es Salaam property prices are expected to grow by roughly 28% to 40% cumulatively, assuming stable economic conditions.
- Flooding risk and poor drainage remain real concerns in some outer neighborhoods of Dar es Salaam, which can cap price growth in those areas.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the current property price trends in Dar es Salaam as of 2026?
What is the average house price in Dar es Salaam as of 2026?
As of early 2026, the estimated average property price in Dar es Salaam sits around TZS 280 million, which translates to approximately USD 105,000 or EUR 97,000.
When looking at price per square meter, properties in Dar es Salaam typically range from TZS 2.2 million to TZS 4.2 million per sqm, with a practical middle-of-market anchor around TZS 3 million per sqm (roughly USD 1,130 or EUR 1,040 per sqm).
For most buyers in Dar es Salaam, the realistic price range that covers roughly 80% of property purchases falls between TZS 180 million and TZS 450 million (approximately USD 68,000 to USD 170,000, or EUR 62,000 to EUR 155,000), though high-end villas and luxury condos in premium areas can reach TZS 900 million to over TZS 3 billion.
How much have property prices increased in Dar es Salaam over the past 12 months?
Property prices in Dar es Salaam increased by an estimated 6% to 10% over the past 12 months, with the most likely figure sitting around 8% in nominal terms.
This growth varied by property type, with townhouses and well-located apartments seeing gains toward the higher end of that range, while outer-area standalone houses grew more modestly at around 5% to 7%.
The single most significant factor driving this price movement was the expansion of the BRT system, which improved commute times along key corridors and increased what buyers were willing to pay for homes near stations.
Which neighborhoods have the fastest rising property prices in Dar es Salaam as of 2026?
As of early 2026, the neighborhoods with the fastest rising property prices in Dar es Salaam are Kigamboni, Mbezi Beach, and Mikocheni.
Kigamboni is seeing annual price growth of around 10% to 12%, Mbezi Beach is growing at roughly 9% to 11%, and Mikocheni is appreciating at approximately 8% to 10% per year.
The main demand driver behind this growth is improved accessibility, with the Kigamboni Bridge and BRT corridor expansions cutting commute times significantly and making these areas more attractive to families and professionals working in the city center.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Dar es Salaam.
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.
Which property types are increasing faster in value in Dar es Salaam as of 2026?
As of early 2026, the ranking of property types by value appreciation in Dar es Salaam goes: townhouses and duplexes first, followed by well-managed apartments, then standalone houses, and finally villas.
Townhouses and duplexes in Dar es Salaam are appreciating at roughly 9% to 11% annually, making them the top-performing property type in the city.
The main reason townhouses are outperforming is that they hit a sweet spot for Dar es Salaam families: they offer security and manageable maintenance at a lower price point than standalone villas, which makes them accessible to the growing middle class.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Dar es Salaam?
- How much should you pay for a house in Dar es Salaam?
- How much should you pay for an apartment in Dar es Salaam?
- How much should you pay for lands in Dar es Salaam?
What is driving property prices up or down in Dar es Salaam as of 2026?
As of early 2026, the top three factors driving property prices in Dar es Salaam are population growth and household formation, strong economic growth expectations, and ongoing transport infrastructure investments.
The factor with the strongest upward pressure is Dar es Salaam's population scale of about 5.4 million people, which creates persistent demand for housing that consistently outpaces the supply of well-serviced, formal properties.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Dar es Salaam here.
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What is the property price forecast for Dar es Salaam in 2026?
How much are property prices expected to increase in Dar es Salaam in 2026?
As of early 2026, property prices in Dar es Salaam are expected to increase by approximately 5% to 9% over the course of the year, with a most likely figure around 7%.
Different analysts and data sources point to a range of forecasts, with conservative estimates around 5% and more optimistic projections reaching 9%, depending on assumptions about credit conditions and infrastructure delivery.
The main assumption underlying most price increase forecasts for Dar es Salaam is that Tanzania will maintain its strong GDP growth trajectory of around 6% while keeping inflation in the mid-single digits.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Dar es Salaam.
Which neighborhoods will see the highest price growth in Dar es Salaam in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Dar es Salaam are Kigamboni, Mbezi Beach, Bunju, and areas along the expanding BRT corridors near Ubungo.
These top neighborhoods are projected to see price growth of 9% to 12% over the year, outpacing the city-wide average by 2 to 4 percentage points.
The primary catalyst driving expected growth in these neighborhoods is improved transport accessibility, particularly the continued expansion of the BRT system and the ripple effects of the Kigamboni Bridge on commute times.
One emerging neighborhood that could surprise with higher-than-expected growth is Goba, where newer family housing developments are attracting buyers seeking space and privacy at more affordable prices than established areas.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dar es Salaam.
What property types will appreciate the most in Dar es Salaam in 2026?
As of early 2026, townhouses and duplexes in gated clusters are expected to appreciate the most in Dar es Salaam, followed by mid-market apartments in convenient locations.
Townhouses in Dar es Salaam are projected to appreciate by approximately 9% to 11% over the year, making them the top-performing property type.
The main demand trend driving this appreciation is the growing Dar es Salaam middle class seeking family-friendly housing that offers security, manageable maintenance, and practical living space at prices below standalone villas.
Luxury villas are expected to underperform relative to other property types because their buyer pool is smaller and more dependent on expat and high-net-worth demand, which can be more volatile from year to year.
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.
How will interest rates affect property prices in Dar es Salaam in 2026?
As of early 2026, interest rates in Tanzania remain elevated, which is putting a ceiling on how fast property prices can rise because many middle-market buyers in Dar es Salaam depend on mortgage financing to purchase homes.
The Bank of Tanzania's policy rate and commercial mortgage rates, which typically run in the mid-teens percentage range, are expected to remain relatively stable through 2026, with modest easing possible if inflation stays contained.
A 1% change in mortgage interest rates in Dar es Salaam typically affects affordability enough to shift transaction volumes first, with prices following with a lag of several months as sellers adjust expectations to match what buyers can actually finance.
You can also read our latest update about mortgage and interest rates in Tanzania.
What are the biggest risks for property prices in Dar es Salaam in 2026?
As of early 2026, the three biggest risks for property prices in Dar es Salaam are an affordability squeeze if borrowing costs stay high or rise further, construction cost shocks from material prices or currency movements, and infrastructure delivery delays that could disappoint buyers who paid a premium for anticipated improvements.
The risk with the highest probability of materializing is the affordability squeeze, because mortgage rates in Tanzania are already high and any further tightening would directly reduce the number of buyers who can step up from renting to owning.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Dar es Salaam.
Is it a good time to buy a rental property in Dar es Salaam in 2026?
As of early 2026, buying a rental property in Dar es Salaam can be a good decision if you focus on locations with strong job access and reliable transport connections, rather than speculating on rapid price gains.
The strongest argument in favor of buying now is that Dar es Salaam's population of 5.4 million people and ongoing infrastructure investments like the BRT expansion create steady rental demand, especially for properties near employment centers and along improved transport corridors.
The strongest argument for waiting is that mortgage rates remain high in Tanzania, which means your financing costs may eat into rental yields, so waiting for potential rate easing could improve your return profile.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Dar es Salaam.
You'll also find a dedicated document about this specific question in our pack about real estate in Dar es Salaam.
Buying real estate in Dar es Salaam can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Dar es Salaam?
What is the 5-year property price forecast for Dar es Salaam as of 2026?
As of early 2026, property prices in Dar es Salaam are expected to grow by roughly 28% to 40% cumulatively over the next 5 years, reaching 2031.
The range of 5-year forecasts spans from a conservative scenario of around 28% total growth (assuming at least one slowdown period) to an optimistic scenario of approximately 40% growth (assuming sustained strong economic conditions).
The projected average annual appreciation rate over the next 5 years in Dar es Salaam is approximately 5% to 7% per year in nominal terms.
The key assumption most forecasters rely on is that Tanzania will maintain solid GDP growth in the 5% to 6% range annually, while Dar es Salaam continues to absorb migration and infrastructure investment without a major economic shock.
Which areas in Dar es Salaam will have the best price growth over the next 5 years?
The top three areas in Dar es Salaam expected to have the best price growth over the next 5 years are Kigamboni, Mbezi Beach and Bunju, and selected corridors benefiting from BRT station access near Ubungo.
These top-performing areas are projected to see 5-year cumulative price growth of roughly 45% to 60%, outpacing the city-wide average by a meaningful margin.
This 5-year outlook is similar to the shorter-term forecast in terms of which neighborhoods lead, but the gap between accessibility-improved areas and stagnant areas widens over time as infrastructure effects compound.
One currently undervalued area with strong potential for outperformance over 5 years is Goba, which offers newer housing stock and space for development at prices below more established neighborhoods like Mbezi Beach.
What property type will give the best return in Dar es Salaam over 5 years as of 2026?
As of early 2026, townhouses and duplexes in well-connected locations are expected to give the best total return over 5 years in Dar es Salaam, combining solid appreciation with steady rental income.
The projected 5-year total return for townhouses in Dar es Salaam, including both price appreciation and rental income, is estimated at roughly 55% to 75%, depending on location and management quality.
The main structural trend favoring townhouses is the growing Dar es Salaam middle class that prioritizes security, family-friendly layouts, and manageable maintenance costs, which creates both strong buyer demand and reliable tenant pools.
For investors seeking a balance of return and lower risk, mid-market apartments in convenient locations near BRT stations offer strong liquidity and consistent rental demand, even if their appreciation potential is slightly lower than townhouses.
How will new infrastructure projects affect property prices in Dar es Salaam over 5 years?
The top three major infrastructure projects expected to impact property prices in Dar es Salaam over the next 5 years are the BRT Lines 4 and 5 expansion, the Standard Gauge Railway connectivity through Dar es Salaam, and ongoing road and drainage improvements in emerging residential areas.
Properties near completed BRT stations in Dar es Salaam typically command a price premium of 10% to 20% compared to similar properties farther from stations, and this premium tends to grow as ridership increases and commute time savings become well established.
The neighborhoods that will benefit most from these infrastructure developments include areas along planned BRT corridors, Kigamboni (continued accessibility improvements), and Ubungo-adjacent areas that gain better connectivity to both the city center and outer employment zones.
How will population growth and other factors impact property values in Dar es Salaam in 5 years?
Dar es Salaam's population is projected to continue growing at roughly 4% to 5% annually, and this sustained growth is expected to keep upward pressure on property values over the next 5 years as housing demand consistently outpaces formal supply.
The demographic shift with the strongest influence on property demand in Dar es Salaam is the large working-age population concentration, which drives household formation and creates steady demand for both rental and owner-occupied housing.
Domestic migration from other Tanzanian regions to Dar es Salaam is expected to remain the primary population driver, with international migration playing a smaller but meaningful role in premium and expat-oriented neighborhoods like Masaki and Oyster Bay.
The property types and areas that will benefit most from these demographic trends are townhouses and mid-market apartments in accessible neighborhoods like Kigamboni, Mbezi Beach, and Sinza, where the growing middle class is concentrating its housing demand.
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 is the 10 year property price outlook in Dar es Salaam?
What is the 10-year property price prediction for Dar es Salaam as of 2026?
As of early 2026, property prices in Dar es Salaam are expected to grow by roughly 48% to 79% cumulatively over the next 10 years, reaching 2036.
The range of 10-year forecasts spans from a conservative scenario of around 48% total growth (assuming periodic slowdowns) to an optimistic scenario of approximately 79% growth (assuming consistently strong economic and demographic conditions).
The projected average annual appreciation rate over the next 10 years in Dar es Salaam is approximately 4% to 6% per year in nominal terms, slightly lower than the 5-year projection to account for inevitable economic cycles.
The biggest uncertainty factor in making 10-year property price predictions for Dar es Salaam is whether Tanzania can maintain its current growth trajectory, because long periods almost always include at least one significant economic slowdown or external shock.
What long-term economic factors will shape property prices in Dar es Salaam?
The top three long-term economic factors that will shape property prices in Dar es Salaam over the next decade are national GDP growth and urban income expansion, inflation management and monetary policy credibility, and infrastructure execution quality across transport and utilities.
The single long-term factor with the most positive impact on Dar es Salaam property values is sustained economic growth, because rising incomes expand the pool of buyers who can afford formal housing and support the step-up from renting to owning.
The single long-term factor that poses the greatest structural risk to property values in Dar es Salaam is the slow pace of formal land servicing and title regularization, which constrains supply and can create price bubbles in well-serviced areas while leaving other zones underdeveloped.
You'll also find a much more detailed analysis in our pack about real estate in Dar es Salaam.
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 Mortgage Market Update | It's Tanzania's central bank with official housing finance data. | We used it to anchor mortgage growth, loan sizing, and interest rates. We then translated these financing signals into demand and price pressure estimates. |
| Bank of Tanzania Monetary Policy Statement | It's the official monetary policy outlook for Tanzania. | We used it to frame the 2026 rate and inflation direction. We then connected that to affordability and willingness to pay for homes. |
| Tanzania National Bureau of Statistics | NBS is the official statistics agency with authoritative CPI data. | We used it to separate nominal from real price growth. We also used it to validate year-on-year price change claims for realism. |
| 2022 Tanzania Census (Dar es Salaam Report) | It's the official census with precise population and demographic data. | We used it to ground housing demand estimates for Dar es Salaam. We linked population scale and age structure to household formation trends. |
| IMF Tanzania Country Page | The IMF provides standardized, credible macro projections. | We used it for GDP growth and inflation expectations around 2026. We translated macro momentum into practical price growth ranges. |
| African Development Bank Tanzania Outlook | AfDB is a major development finance institution with country diagnostics. | We used it to triangulate growth drivers and risks. We mapped those drivers to neighborhoods benefiting from infrastructure. |
| World Bank Tanzania Economic Update | The World Bank is a core reference for macro and urban growth. | We used it as a cross-check on Tanzania's macro story. We incorporated supply constraints into our long-term outlook. |
| World Bank Dar es Salaam BRT Project Report | It's an official World Bank document with measurable transport impacts. | We used it to justify why BRT corridors reshape housing demand. We identified which residential areas reprice fastest when access improves. |
| European Investment Bank BRT Pipeline | EIB is a major infrastructure financier with vetted project details. | We used it to confirm the scope of future BRT expansion. We treated corridor influence as a forward-looking tailwind for nearby housing. |
| DART (Dar Rapid Transit Agency) | It's the implementing agency and most direct source on BRT. | We used it to validate that BRT is an operating, expanding system. We connected commute time improvements to where families rebid housing. |
| Reuters SGR Launch Coverage | Reuters is a global wire that fact-checks major infrastructure events. | We used it to confirm SGR milestone timing and scale. We treated improved logistics as supportive for long-run housing demand. |
| UN-Habitat Dar es Salaam Report | UN-Habitat is the UN's core urban housing body, widely cited on Africa. | We used it to frame supply constraints like informality and servicing. We incorporated structural undersupply into our long-term outlook. |
| KPMG Tanzania Budget Brief | KPMG summarizes official budget targets and policy signals. | We used it to cross-check government growth and fiscal objectives. We connected fiscal stance to construction activity and supply response. |
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If you want to go deeper, you can read the following:
- Is now a good time to invest in property in Dar es Salaam?