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 is East Africa's largest city with nearly 9 million residents in 2026, and its real estate market continues to attract both local and foreign buyers despite unique challenges.
In this article, we cover the current housing prices in Dar es Salaam, the market momentum, property types, neighborhood trends, and what you should realistically expect if you're looking to buy.
We constantly update this blog post to reflect the latest changes in Dar es Salaam's real estate 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.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
How's the real estate market going in Dar es Salaam in 2026?
What's the average days-on-market in Dar es Salaam in 2026?
As of early 2026, residential properties in Dar es Salaam typically spend around 120 days on the market before selling, which translates to roughly 4 months from listing to closing.
The realistic range varies significantly depending on property type: well-priced apartments in prime areas like Masaki and Oyster Bay can sell in 60 to 90 days, while standalone houses and luxury properties often take 150 to 240 days due to more complex due diligence requirements.
Compared to 2023 and 2024, days-on-market in Dar es Salaam has remained relatively stable because the market is still dominated by cash buyers and mortgage rates remain high at 15% to 19%, which means financing friction continues to slow transaction timelines regardless of demand levels.
Are properties selling above or below asking in Dar es Salaam in 2026?
As of early 2026, residential properties in Dar es Salaam typically sell at about 5% below the asking price on average, with correctly priced prime apartments closing at 0% to 3% below ask while older houses and overpriced listings can see discounts of 10% to 15%.
Roughly 75% to 80% of properties in Dar es Salaam sell at or below the asking price, with only a small fraction of well-located new apartments achieving full asking price, and we have moderate confidence in this estimate given the lack of a centralized MLS system.
Bidding wars are rare in Dar es Salaam, but when they do occur, they typically happen for new-build apartments in Masaki, Oyster Bay, and Mikocheni that offer clean unit titles, modern amenities, and reliable utilities since these features are scarce and highly valued by both expats and upper-income local buyers.
By the way, you will find much more detailed data in our property pack covering the real estate market in Dar es Salaam.
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.
What kinds of residential properties can I realistically buy in Dar es Salaam?
What property types dominate in Dar es Salaam right now?
The Dar es Salaam property market is roughly split between low-rise self-built homes (which represent the majority of housing stock by volume) and formal apartments and gated compounds (which dominate listings visible to foreign buyers), with standalone villas making up a smaller but significant portion in suburban and prime areas.
Apartments represent the largest share of the market that foreign buyers can realistically access in Dar es Salaam, particularly in neighborhoods like Masaki, Oyster Bay, Upanga, and Mikocheni where formal developments with proper unit titles are concentrated.
Apartments became prevalent in these prime areas of Dar es Salaam because land scarcity, security concerns, and the desire for reliable utilities (water, power backup, parking) drove developers to build vertically, while the Unit Titles Act of 2008 created a legal framework that makes apartment ownership clearer and more accessible for foreigners than standalone land purchases.
If you want to know more, you should read our dedicated analyses:
- 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?
Are new builds widely available in Dar es Salaam right now?
New-build properties represent roughly 15% to 25% of residential listings in Dar es Salaam, with availability concentrated in mid-rise apartment developments targeting expats and upper-middle-income professionals, though quality and infrastructure delivery vary significantly between projects.
As of early 2026, the highest concentration of new-build developments in Dar es Salaam is found in Masaki, Mikocheni, Mbezi Beach, and parts of Kijitonyama, where developers are building modern apartment complexes with amenities like backup generators, water tanks, security, and parking that address the infrastructure challenges common in older stock.
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Which neighborhoods are improving fastest in Dar es Salaam in 2026?
Which areas in Dar es Salaam are gentrifying in 2026?
As of early 2026, the neighborhoods showing the clearest signs of gentrification in Dar es Salaam include Mikocheni, Sinza, Kijitonyama, and parts of the Ubungo area near the BRT corridor, where new apartment buildings, improved road access, and commercial developments are replacing older informal structures.
The visible changes in these Dar es Salaam neighborhoods include new supermarkets and coffee shops replacing local dukas, mid-rise apartments with security gates and parking appearing on previously empty plots, and a noticeable increase in private vehicles and professional tenants commuting to offices in the central business district.
Price appreciation in these gentrifying neighborhoods of Dar es Salaam has ranged from 15% to 30% over the past two to three years in nominal terms, with Mikocheni and Kijitonyama seeing the strongest gains due to their proximity to established prime areas like Msasani and improved transport links.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dar es Salaam.
Where are infrastructure projects boosting demand in Dar es Salaam in 2026?
As of early 2026, the areas in Dar es Salaam where major infrastructure projects are most clearly boosting housing demand include the Kilwa Road corridor (Mbagala to Gerezani), parts of Kawawa Road, and neighborhoods near the Ubungo Interchange where BRT access has transformed commute times.
The specific infrastructure driving this demand is the BRT Phase 2 project, a 20.3-kilometer bus rapid transit line built by Sinohydro at a cost of about $160 million, which connects Mbagala in the south to the city center via Kilwa Road and Kawawa Road with dedicated bus lanes and modern stations.
BRT Phase 2 in Dar es Salaam began trial operations in late 2025 with full commercial service expected in early 2026, meaning that 2026 is the year when the actual service impact (rather than just construction) gets priced into nearby property values.
In Dar es Salaam, properties near newly announced BRT stations typically see a 5% to 10% price bump from announcement hype, but the real sustained appreciation of 15% to 25% comes in the 2 to 3 years after operations begin when commute time savings become a daily reality for residents.
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.
What do locals and insiders say the market feels like in Dar es Salaam?
Do people think homes are overpriced in Dar es Salaam in 2026?
As of early 2026, the general sentiment among salaried local buyers in Dar es Salaam is that homes in desirable areas feel expensive and out of reach, while foreign buyers and investors often view the same prices as reasonable compared to other African capitals like Nairobi or Accra.
When locals argue that Dar es Salaam homes are overpriced, they typically point to the mismatch between asking prices (often anchored to USD values) and typical Tanzanian salaries, plus the fact that mortgage rates of 15% to 19% make monthly payments unaffordable for most formal-sector workers.
Those who believe Dar es Salaam prices are fair counter that population growth is relentless (nearly 5% per year), prime land is genuinely scarce, and construction costs for quality materials have risen sharply, meaning prices reflect real supply constraints rather than speculation.
The price-to-income ratio in Dar es Salaam is estimated at around 15 to 20 times the average annual formal-sector salary for a typical apartment in a good neighborhood, which is significantly higher than the national average and similar to or worse than Nairobi, reflecting the affordability squeeze concentrated in the country's commercial capital.
What are common buyer mistakes people regret in Dar es Salaam right now?
The most frequently cited buyer mistake in Dar es Salaam is treating title verification as a formality rather than a critical step, which leads to discovering boundary disputes, unclear rights of way, or competing ownership claims only after money has changed hands and legal costs have mounted.
The second most common regret is underestimating infrastructure reliability, specifically buying a property for its view or location without verifying water pressure, backup power availability, road access during rainy season, or flooding risk, which then creates expensive ongoing problems.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Dar es Salaam.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Dar es Salaam.
Get the full checklist for your due diligence in Dar es Salaam
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Dar es Salaam in 2026?
Do foreigners face extra challenges in Dar es Salaam right now?
The overall difficulty level for foreigners buying property in Dar es Salaam is significantly higher than for local buyers because Tanzania's Land Act restricts non-citizens from being allocated land directly, meaning foreigners must navigate either the Unit Titles framework for apartments or structured investment pathways through the Tanzania Investment Centre.
The specific legal restrictions in Dar es Salaam include the requirement that foreigners can only hold derivative rights (essentially long-term leaseholds of 33, 66, or 99 years) rather than freehold land, and for standalone properties with land, this typically requires a minimum investment of $500,000 and registration through official investment authorities.
Beyond legal hurdles, foreigners in Dar es Salaam commonly struggle with the fact that most transactions happen in Swahili, title documents often require interpretation by local lawyers, banking systems are not set up for easy international transfers, and sellers may be unfamiliar with foreign buyer requirements, leading to frustrating delays and miscommunication.
We will tell you more in our blog article about foreigner property ownership in Dar es Salaam.
Do banks lend to foreigners in Dar es Salaam in 2026?
As of early 2026, mortgage financing for foreign buyers in Dar es Salaam is available but limited, with most foreign purchasers ending up as cash buyers because local banks are conservative about lending to non-residents and the documentation requirements are extensive.
Foreign buyers in Dar es Salaam who do qualify for mortgages can expect loan-to-value ratios of 50% to 70% (compared to 80% for locals), interest rates of 15% to 19% for Tanzanian Shilling loans (or slightly lower for USD-denominated loans at select banks), and loan terms of 10 to 20 years depending on the lender.
Banks in Dar es Salaam typically require foreign mortgage applicants to provide proof of stable income (ideally with local employment or a Tanzanian business), audited financial statements, a valid residence permit, source of funds documentation for anti-money-laundering compliance, and often a substantial deposit of 30% to 50% of the property value.
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.
How risky is buying in Dar es Salaam compared to other nearby markets?
Is Dar es Salaam more volatile than nearby places in 2026?
As of early 2026, Dar es Salaam's residential property market shows lower headline volatility than Nairobi (which experienced sharper corrections in 2023-2024) but similar stability to Kampala, though this apparent calm partly reflects the market's opacity rather than true price stability.
Over the past decade, Dar es Salaam has avoided the dramatic boom-bust cycles seen in Nairobi's apartment market, instead showing steady nominal appreciation of 5% to 8% per year with occasional slowdowns but no major crashes, while Nairobi saw corrections of 10% to 15% in certain segments and Kampala experienced uneven growth tied to political cycles.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Dar es Salaam.
Is Dar es Salaam resilient during downturns historically?
Dar es Salaam's residential property market has historically shown moderate resilience during economic downturns because the dominance of cash buyers and limited mortgage penetration means there are few forced sellers, allowing the market to adjust through lower transaction volumes rather than price crashes.
During the COVID-19 downturn in 2020-2021, prime residential rents in Dar es Salaam dropped by roughly 10% to 20% as expat demand contracted, but sale prices remained relatively stable with only a 5% to 10% softening, and the market recovered within 18 to 24 months as economic activity resumed.
The property types in Dar es Salaam that have historically held value best during downturns are well-located apartments in Masaki, Oyster Bay, and Upanga with clean unit titles and strong rental demand from the remaining expat and diplomatic community, while speculative developments in peri-urban areas and luxury villas dependent on a narrow buyer pool have suffered more.
Get to know the market before you buy a property in Dar es Salaam
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How strong is rental demand behind the scenes in Dar es Salaam in 2026?
Is long-term rental demand growing in Dar es Salaam in 2026?
As of early 2026, long-term rental demand in Dar es Salaam is growing steadily at roughly 4% to 6% annually, driven primarily by the city's population growth of nearly 5% per year and continued urbanization as young professionals migrate from rural areas and secondary cities.
The tenant demographics driving long-term rental demand in Dar es Salaam include young professionals working in banking, telecoms, and NGOs who cannot afford to buy, expat families on corporate assignments seeking furnished apartments, and dual-income couples preferring the convenience and security of managed apartment complexes over self-built homes.
The neighborhoods in Dar es Salaam with the strongest long-term rental demand right now are Upanga (favored by professionals for its central location), Masaki and Oyster Bay (dominant for expat and diplomatic tenants), and Mikocheni and Sinza (increasingly popular with middle-income local renters seeking value for money).
You might want to check our latest analysis about rental yields in Dar es Salaam.
Is short-term rental demand growing in Dar es Salaam in 2026?
Short-term rental regulations in Dar es Salaam remain relatively lenient in 2026 with no strict licensing enforcement, though hosts are generally expected to register with local authorities and comply with zoning rules, which means the barrier to entry is low but operators should still budget for potential future formalization.
As of early 2026, short-term rental demand in Dar es Salaam is growing moderately at around 5% to 10% annually, supported by Tanzania's tourism revenue reaching nearly $4 billion in 2025 and rising international arrivals that exceeded 2.2 million visitors.
The current average occupancy rate for short-term rentals in Dar es Salaam is approximately 45% to 50%, with typical listings generating around $8,000 per year at an average daily rate of $45 to $50, though top-performing properties in prime locations can achieve $10,000 to $15,000 annually.
The guest demographics driving short-term rental demand in Dar es Salaam include business travelers visiting the port and corporate headquarters, NGO and diplomatic staff on short assignments, regional tourists from East Africa, and a growing segment of digital nomads attracted by relatively low costs and coastal lifestyle.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Dar es Salaam.
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 realistic short-term and long-term projections for Dar es Salaam in 2026?
What's the 12-month outlook for demand in Dar es Salaam in 2026?
As of early 2026, the 12-month demand outlook for residential property in Dar es Salaam is stable to moderately positive, with continued population growth and infrastructure completion (especially BRT Phase 2) expected to sustain buyer interest despite persistent affordability constraints.
The key factors most likely to influence demand in Dar es Salaam over the next 12 months include Tanzania's projected GDP growth of around 6%, the inflation rate which the Bank of Tanzania is targeting at around 3% to 5%, and the interest rate environment which shows no signs of significant easing that would boost mortgage accessibility.
The forecasted price movement for Dar es Salaam residential property over the next 12 months is a nominal increase of 3% to 6% for well-located properties with clean titles, which translates to roughly flat or slightly positive real growth after accounting for inflation.
By the way, we also have an update regarding price forecasts in Tanzania.
What's the 3-5 year outlook for housing in Dar es Salaam in 2026?
As of early 2026, the 3 to 5 year outlook for housing prices in Dar es Salaam is positive with estimated nominal appreciation of 5% to 9% per year compounded, driven by structural population growth, continued urbanization, and the city's entrenched role as Tanzania's commercial hub.
The major development projects expected to shape Dar es Salaam over the next 3 to 5 years include BRT Phases 3 through 5 (covering Nyerere Road and Bagamoyo Road corridors), the Standard Gauge Railway connections, port expansion, and continued commercial development in Mikocheni and the Kigamboni waterfront area.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Dar es Salaam is a significant currency depreciation or inflation spike triggered by external shocks, which would raise construction costs, squeeze affordability further, and potentially stall development momentum while forcing sellers to accept larger discounts.
Are demographics or other trends pushing prices up in Dar es Salaam in 2026?
As of early 2026, demographic trends are the single most powerful force pushing housing prices up in Dar es Salaam, with the city's population growing at nearly 5% annually and expected to exceed 13 million by 2035, creating relentless demand pressure that outpaces formal housing supply.
The specific demographic shifts affecting Dar es Salaam prices include massive rural-to-urban migration of young job seekers (Tanzania's median age is just 17.5 years), increasing household formation as young adults establish independent homes, and a growing middle class in professional services, banking, and telecoms who can afford formal housing.
Beyond demographics, Dar es Salaam prices are also being pushed by improved transport infrastructure (BRT reducing commute friction), rising construction costs for quality materials (cement, steel, imported finishes), and steady demand from the NGO and diplomatic community that anchors the prime rental market regardless of local economic cycles.
These demographic and trend-driven price pressures in Dar es Salaam are expected to continue for at least 15 to 20 years because the population growth projections extend through 2050 and urbanization rates remain below 40%, meaning the structural demand story is generational rather than cyclical.
What scenario would cause a downturn in Dar es Salaam in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Dar es Salaam is a foreign exchange shock combined with imported inflation, which would raise construction and maintenance costs sharply while simultaneously reducing buyer purchasing power and forcing the Bank of Tanzania to tighten credit conditions.
The early warning signs indicating such a downturn is beginning in Dar es Salaam would include a sustained weakening of the Tanzanian Shilling beyond 2,600 to the US Dollar, rising mortgage delinquency rates reported by TMRC, a noticeable increase in "price reduced" listings in prime areas, and developers delaying or canceling new projects due to cost uncertainty.
Based on historical patterns, a realistic downturn in Dar es Salaam would likely see prime property prices decline by 10% to 20% over 18 to 24 months, with the luxury and expat-dependent segment suffering most while mass-market housing in areas with strong local demand would soften less and recover faster.
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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 |
|---|---|---|
| Tanzania National Bureau of Statistics (NBS) - Population Projections | It's Tanzania's official statistics agency publishing census-based projections through 2050. | We used it to quantify Dar es Salaam's future population and household growth, which forms the foundation of our demand forecasts. We also used it to ground our 3-5 year outlook in official demographic data rather than speculation. |
| Tanzania Mortgage Refinance Company (TMRC) | It's the specialist institution tracking Tanzania's mortgage market with defined metrics on rates, lenders, and market size. | We used it to understand mortgage availability, interest rate ranges (15-19%), and market depth. We also used it to explain why cash buyers dominate and how financing constraints affect negotiation dynamics. |
| Bank of Tanzania - Monetary Policy Report | It's Tanzania's central bank providing the primary macroeconomic and financial conditions report. | We used it to frame 2026 inflation and interest rate context affecting affordability. We also used it to build realistic downturn scenarios based on currency and credit risks. |
| Tanzania Land Act (Cap. 113) | It's the official legal text from the government portal governing land ownership and foreign buyer restrictions. | We used it to explain the core rule that foreigners cannot own land outright and must use derivative rights structures. We also used it to ensure our foreigner guidance is legally accurate. |
| African Development Bank - BRT Phase 2 Project | It's a multilateral development bank providing verified project scope, timeline, and funding details. | We used it to identify which transport corridors are being upgraded and their impact on neighborhood demand. We also used it to anchor infrastructure-driven price appreciation estimates to verifiable projects. |
| Knight Frank Tanzania Market Update | It's a global real estate consultancy with on-the-ground Tanzania operations and regional benchmarking. | We used it for market structure insights including where prime areas are located and how the expat segment differs from mass market. We used it cautiously for structure rather than current pricing since the report is older. |
| IMF Tanzania Country Page | It's the IMF's official portal with standardized macroeconomic projections used globally. | We used it as an independent check on 2026 GDP growth and inflation expectations. We also used it to build our "what would cause a downturn" scenarios with credible external data. |
| The Citizen Tanzania | It's a major national newspaper reporting specific official milestones and government announcements. | We used it to verify BRT Phase 2 operational timelines and translate infrastructure plans into on-the-ground reality. We also used it to cross-check AfDB project schedules with local reporting. |
| Airbtics - Dar es Salaam Market Data | It's a specialized short-term rental analytics platform tracking Airbnb listings, occupancy, and revenue. | We used it to quantify short-term rental performance metrics including occupancy rates and average daily rates. We also used it to assess the realistic income potential for Airbnb investors in Dar es Salaam. |
| Worldometer / UN Population Data | It's an aggregator of UN Population Division data providing standardized demographic statistics. | We used it to verify Tanzania's urbanization rate and national population growth figures. We also used it to contextualize Dar es Salaam's growth within the broader national trend. |
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