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
This blog post covers everything you need to know about rental yields in Dar es Salaam, from gross and net returns to neighborhood-by-neighborhood breakdowns.
We constantly update this article with fresh data, so you're always getting the most current picture of Dar es Salaam's rental 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.
Insights
- Dar es Salaam's citywide gross rental yield averages around 8.5% in 2026, which is notably higher than many African capitals because smaller units dominate the rental supply.
- Studios and one-bedroom apartments in Dar es Salaam often deliver net yields above 8%, while large standalone houses typically fall to the mid-4% range.
- The gap between high-yield and low-yield neighborhoods in Dar es Salaam can reach 5 percentage points, making location selection critical for investors.
- Vacancy rates in Dar es Salaam range from 4% in central areas like Upanga to over 12% in newer developments on the city's edges.
- Dar es Salaam is one of Africa's most renter-heavy cities, with strong structural demand that keeps well-located small units occupied year-round.
- Property taxes in Dar es Salaam typically cost landlords between 0.2% and 0.6% of property value annually, often collected through electricity token channels.
- Full-service property management in Dar es Salaam runs 8% to 12% of monthly rent, plus a tenant placement fee of up to one month's rent.
- BRT Lines 4 and 5, currently in the pipeline, are expected to boost rents along their corridors in neighborhoods like Ubungo and Tegeta.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the rental yields in Dar es Salaam as of 2026?
What's the average gross rental yield in Dar es Salaam as of 2026?
As of early 2026, the average gross rental yield across all residential property types in Dar es Salaam sits at approximately 8.5%.
That said, the realistic range for most typical properties in Dar es Salaam spans from about 6% to 11%, depending heavily on the neighborhood and unit size you choose.
Compared to many other East African cities, Dar es Salaam's gross yields tend to be on the higher end because the market is heavily weighted toward smaller, more affordable rental stock rather than luxury villas.
The single biggest factor driving gross yields in Dar es Salaam right now is unit size: smaller apartments and studios consistently deliver higher rent relative to their purchase price than larger detached homes.
What's the average net rental yield in Dar es Salaam as of 2026?
As of early 2026, the average net rental yield in Dar es Salaam comes in at approximately 6.8% after accounting for normal running costs but before any financing expenses.
This means the typical gap between gross and net yields in Dar es Salaam is around 1.5 to 2 percentage points, which reflects the city's specific cost structure for landlords.
The expense category that most significantly eats into gross yields in Dar es Salaam is vacancy and tenant turnover costs, especially for properties in less central locations where finding a new tenant can take several months.
Net yields for standard investment properties in Dar es Salaam realistically range from about 4.5% to 9%, with the lower end representing large houses in prime areas and the higher end representing well-located small apartments.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market 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 yield is considered "good" in Dar es Salaam in 2026?
Local investors in Dar es Salaam generally consider a net yield of 6% to 8% as "good" for a typical long-term rental property, since this provides a healthy buffer against vacancy and repair surprises.
The threshold that separates average-performing properties from high-performers in Dar es Salaam tends to fall around 8% net yield, though anything above that warrants careful scrutiny of why the yield is so high, whether it's location risk, property condition, or title issues.
How much do yields vary by neighborhood in Dar es Salaam as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Dar es Salaam typically ranges from 2 to 5 percentage points.
Higher-yield neighborhoods in Dar es Salaam tend to be value-focused commuter areas with strong local demand, such as Sinza, Ubungo, Kimara, and Tegeta, where purchase prices haven't been inflated by prestige premiums.
Lower-yield neighborhoods are typically the prime coastal and expat-oriented areas like Masaki, Oysterbay, Msasani, and Upanga, where property prices bake in scarcity and lifestyle appeal that outpaces rental growth.
The main reason yields vary so dramatically across Dar es Salaam is that prime neighborhoods command purchase prices driven by status and amenities, while middle-market areas price more closely to actual rental income potential.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dar es Salaam.
How much do yields vary by property type in Dar es Salaam as of 2026?
As of early 2026, gross rental yields across different property types in Dar es Salaam range from about 5% for large standalone houses up to 10% or higher for studios and room-based rentals.
The property type currently delivering the highest average gross rental yield in Dar es Salaam is the studio or one-bedroom apartment, along with multi-unit compound-style rentals where landlords can charge higher rent per square meter.
Large detached houses and villas in Dar es Salaam consistently deliver the lowest average gross yields because their purchase prices jump faster than the rents they can command.
The key reason yields differ so much between property types in Dar es Salaam is that smaller units serve the broadest renter base, including young professionals and single earners, which keeps demand strong and rent efficiency high.
By the way, you might want to read the following:
What's the typical vacancy rate in Dar es Salaam as of 2026?
As of early 2026, the typical residential vacancy rate in Dar es Salaam averages around 7% annually, which translates to roughly 0.8 months of vacancy per year for a standard rental property.
Vacancy rates across different neighborhoods in Dar es Salaam realistically range from about 4% in high-demand central areas to 12% or more in newer developments on the city's outskirts.
The main factor driving vacancy rates in Dar es Salaam is location relative to jobs and transport, with centrally located small units filling quickly while properties in remote or newly developed areas can sit empty for 6 to 12 months.
Compared to other major East African cities, Dar es Salaam's vacancy rates are relatively moderate because the city has an unusually renter-heavy population with persistent structural demand for housing.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Dar es Salaam.
What's the rent-to-price ratio in Dar es Salaam as of 2026?
As of early 2026, the average rent-to-price ratio in Dar es Salaam is approximately 0.7% per month, which means monthly rent equals about 0.7% of the property's purchase price.
Buy-to-let investors in Dar es Salaam generally consider a monthly rent-to-price ratio of 0.7% or higher as favorable, and this metric directly translates to an annual gross yield of around 8.5% since it's simply the gross yield divided by 12.
Compared to other major African cities, Dar es Salaam's rent-to-price ratio is relatively attractive because purchase prices haven't inflated as dramatically as in some regional hubs, while renter demand remains consistently strong.
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 neighborhoods and micro-areas in Dar es Salaam give the best yields as of 2026?
Where are the highest-yield areas in Dar es Salaam as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Dar es Salaam are Sinza, Ubungo, and Kimara, all of which offer strong rent-to-price ratios thanks to their broad local renter base and good transport access.
In these top-performing areas like Sinza, Ubungo, and Kimara, investors can realistically expect gross rental yields in the 9% to 11% range for well-chosen small units.
The main characteristic these high-yield areas share is that they attract working-class and middle-class tenants who need affordable housing with reasonable commutes, which keeps demand steady without inflating purchase prices.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Dar es Salaam.
Where are the lowest-yield areas in Dar es Salaam as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Dar es Salaam are Masaki, Oysterbay, and Msasani, all prime coastal areas where prestige pricing compresses returns.
In these low-yield areas, gross rental yields typically fall in the 5% to 7% range because property prices reflect scarcity, lifestyle appeal, and expatriate demand rather than pure rental economics.
The main reason yields are compressed in Masaki, Oysterbay, and Msasani is that buyers pay a premium for the address and amenities, which pushes purchase prices up faster than the rents these properties can command.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Dar es Salaam.
Which areas have the lowest vacancy in Dar es Salaam as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Dar es Salaam are Upanga, Sinza, and Ubungo, where strong demand keeps units filled consistently.
In these low-vacancy areas, vacancy rates typically fall in the 3% to 5% range, meaning landlords experience less than three weeks of vacancy per year on average.
The main demand driver keeping vacancy low in Upanga, Sinza, and Ubungo is their convenient access to employment centers, hospitals, and major transport routes, which creates a reliable pool of tenants year-round.
The trade-off investors typically face when targeting these low-vacancy areas is that Upanga commands premium prices with lower yields, while Sinza and Ubungo offer better yields but may require more hands-on tenant management.
Which areas have the most renter demand in Dar es Salaam right now?
The top three neighborhoods currently experiencing the strongest renter demand in Dar es Salaam are Upanga for higher-budget tenants, and Sinza and Ubungo for the price-sensitive mass market.
The renter profiles driving most of the demand are young professionals, new households, and single earners in the middle-market areas, while expatriates and higher-income locals dominate demand in Upanga and the prime coastal strip.
In these high-demand neighborhoods, well-priced rental listings for small units typically get filled within days to a few weeks, especially in Sinza and Ubungo where affordable options attract immediate interest.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Dar es Salaam.
Which upcoming projects could boost rents and rental yields in Dar es Salaam as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Dar es Salaam are the BRT Lines 4 and 5 expansion, the Standard Gauge Railway connectivity improvements, and ongoing road corridor upgrades.
The neighborhoods most likely to benefit from these projects are Ubungo, Tegeta, Kimara, and parts of Kigamboni, all of which will become "effectively closer" to the city center once transport improvements reduce commute times.
Once these projects are completed, investors in well-positioned properties along the improved corridors might realistically expect rent increases of 10% to 20% over a few years as access improves and demand shifts.
You'll find our latest property market analysis about Dar es Salaam here.
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What property type should I buy for renting in Dar es Salaam as of 2026?
Between studios and larger units in Dar es Salaam, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments in Dar es Salaam consistently outperform larger units in terms of both rental yield and occupancy rates.
Studios in Dar es Salaam typically deliver gross yields in the 9% to 11% range (roughly 200,000 to 300,000 TZS, 80 to 120 USD, or 75 to 110 EUR per square meter annually), while larger units with three or more bedrooms often fall to the 5% to 7% range.
The main factor explaining this difference is that smaller units in Dar es Salaam serve the broadest tenant base, including young professionals and single earners who make up a large share of the city's renter population.
However, larger units can be the better investment choice in Dar es Salaam if you're targeting expatriate families or diplomatic tenants who pay premium rents and sign longer leases in areas like Masaki or Oysterbay.
What property types are in most demand in Dar es Salaam as of 2026?
As of early 2026, the most in-demand property type in Dar es Salaam is the one to two bedroom apartment, which matches the needs and budgets of the city's large young professional and new household population.
The top three property types ranked by current tenant demand in Dar es Salaam are one to two bedroom apartments, studios and bedsitters, and practical two to three bedroom family houses in commuter-friendly areas.
The primary trend driving this demand pattern is Dar es Salaam's urbanization and the growth of its working-age population, which creates steady demand for affordable, conveniently located rental housing.
One property type currently underperforming in demand and likely to remain so is the large luxury villa, which has a narrow tenant pool and often sits vacant longer due to high rents and limited expatriate arrivals.
What unit size has the best yield per m² in Dar es Salaam as of 2026?
As of early 2026, units in the 25 to 50 square meter range, which includes studios and compact one-bedrooms, deliver the best gross rental yield per square meter in Dar es Salaam.
For this optimal unit size in Dar es Salaam, the typical gross rental yield per square meter runs around 9% to 11% annually, which translates to roughly 250,000 TZS, 100 USD, or 90 EUR per square meter per year in rent.
Smaller units under 25 square meters can face regulatory or practical limitations, while larger units above 80 square meters tend to have lower yield per square meter because the additional space doesn't command proportionally higher rent in Dar es Salaam's price-sensitive market.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Dar es Salaam.
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.
What costs cut my net yield in Dar es Salaam as of 2026?
What are typical property taxes and recurring local fees in Dar es Salaam as of 2026?
As of early 2026, the annual property tax for a typical rental apartment in Dar es Salaam ranges from about 500,000 to 1,500,000 TZS (200 to 600 USD, or 185 to 555 EUR), depending on the property's assessed value and location.
Beyond property tax, landlords in Dar es Salaam should also budget for local authority rates and service charges, which can add another 200,000 to 500,000 TZS (80 to 200 USD, or 75 to 185 EUR) annually for typical units.
Combined, these taxes and fees typically represent about 3% to 5% of gross rental income in Dar es Salaam, though this varies based on property value and how aggressively local authorities collect.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Dar es Salaam.
What insurance, maintenance, and annual repair costs should landlords budget in Dar es Salaam right now?
Annual landlord insurance for a typical rental property in Dar es Salaam costs approximately 300,000 to 800,000 TZS (120 to 320 USD, or 110 to 295 EUR), depending on the property's value and coverage level.
The recommended annual maintenance and repair budget in Dar es Salaam is about 1.5% of property value, which covers routine upkeep and small fixes that accumulate over a typical year.
The repair expense that most commonly catches landlords off guard in Dar es Salaam is water system and plumbing issues, along with coastal corrosion damage in properties near the ocean that can accelerate wear on fixtures and fittings.
For a mid-range rental property in Dar es Salaam, landlords should realistically budget a combined total of 1,500,000 to 3,000,000 TZS (600 to 1,200 USD, or 555 to 1,110 EUR) annually for insurance, maintenance, and repairs.
Which utilities do landlords typically pay, and what do they cost in Dar es Salaam right now?
In Dar es Salaam, tenants typically pay for day-to-day utilities like electricity tokens, water, and internet, while landlords more often cover common-area services, occasional water shortfalls, and service charges in managed compounds.
When landlords do pay a portion of utilities in Dar es Salaam, the monthly cost typically runs 75,000 to 300,000 TZS (30 to 120 USD, or 28 to 110 EUR), primarily for service and common-area costs in apartment blocks.
What does full-service property management cost, including leasing, in Dar es Salaam as of 2026?
As of early 2026, full-service property management in Dar es Salaam typically costs 8% to 12% of monthly rent, which for a property earning 500,000 TZS (200 USD, 185 EUR) monthly would mean 40,000 to 60,000 TZS (16 to 24 USD, 15 to 22 EUR) in management fees.
On top of ongoing management, the typical leasing or tenant-placement fee in Dar es Salaam is half to one full month of rent, usually charged as a one-time fee each time a new tenant is placed.
What's a realistic vacancy buffer in Dar es Salaam as of 2026?
As of early 2026, landlords in Dar es Salaam should set aside approximately 7% of annual rental income as a vacancy buffer, though this can range from 4% for prime small units to 12% or more for properties in less accessible locations.
In practical terms, this translates to roughly 3 to 4 weeks of vacancy per year for a typical rental property in central Dar es Salaam, though landlords in edge locations or with larger houses may experience 6 to 8 weeks or more.
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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 |
|---|---|---|
| Centre for Affordable Housing Finance in Africa (CAHF) - Rental Housing Supply Ecosystems Report | It's a well-known African housing research organization that publishes methods and assumptions clearly. | We used its Dar es Salaam yield tables and tenant-finding evidence as the backbone of yield and vacancy estimates. We then adjusted interpretations by triangulating with other macro and tax sources. |
| World Bank - Making Room for Renters Policy Research | The World Bank is a top-tier, transparent publisher of primary research and datasets. | We used it to ground the demand story showing Dar es Salaam is a renter-heavy city. We use that demand backdrop to explain why some neighborhoods stay liquid even when yields differ. |
| Tanzania National Bureau of Statistics (NBS) - Household Budget Survey 2017/18 | It's the official statistics agency, and HBS is the main national source on housing and household spending. | We used it to anchor the broader housing affordability and tenure context for Tanzania. We use it as a reality check so yield estimates fit local income and spending patterns. |
| NBS Microdata Catalog - HBS 2011/12 | It's NBS's official portal describing survey scope and comparability across places including Dar es Salaam. | We used it to validate that NBS treats Dar es Salaam as a distinct reporting domain for rental prevalence. We triangulate its framing with the World Bank renter-share evidence. |
| CAHF - Tanzania Rental Focus Note | It's a research note from the same reputable housing research body, and it cites official surveys directly. | We used it as a cross-check that Dar es Salaam is unusually renter-heavy within Tanzania. We use that to justify why tenant access is a key yield driver in Dar. |
| Tanzania Mortgage Refinance Company (TMRC) - Market Update September 2024 | TMRC is a key housing-finance institution and publishes regular market stats with clear definitions. | We used it to frame the financing environment that influences pricing and investor demand. We use it to explain why yields in prime areas can compress when buyer demand rises. |
| Bank of Tanzania - Publications Portal | It's the central bank and the authoritative source for macro context and financial conditions. | We used it as the macro sanity check layer since inflation and interest rate direction matters for acceptable yields. We use it to keep the 2026 interpretation realistic. |
| Tanzania Revenue Authority - Withholding Tax Page | It's the official tax authority and explains withholding tax mechanics and rates by payment type. | We used it to map taxes that can reduce net yield. We use it to build a simple net yield cost stack that a non-professional can follow. |
| Local Government Authorities (Rating) Act - TanzLII | It's primary legislation text hosted by a recognized legal information institute. | We used it to ground the existence of local property rating and collection powers. We then pair it with practical collection updates reported by national media. |
| The Citizen - Property Tax Changes Article | It's a major national newspaper and explicitly links changes to amendments in the Rating Act via the Finance Act. | We used it to explain how property tax collection actually happens in practice through channels like electricity tokens. We use it to set a realistic annual rates allowance. |
| European Investment Bank - Dar es Salaam BRT Lines 4 and 5 Project | EIB is a major multilateral lender with vetted project documentation. | We used it to identify pipeline transport upgrades that can shift renter demand along corridors. We translate that into neighborhood examples that benefit from improved commuting. |
| World Bank - Dar es Salaam Urban Transport Improvement Project Status Report | It's an official World Bank project document with dated milestones and indicators. | We used it to cross-check timeline and progress signals for BRT phases so we don't rely on rumors. We use it to support rent boost projections where access improves. |
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