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
If you're a foreign investor curious about what rental returns you can actually expect from an apartment in Dar es Salaam, this guide breaks down the numbers in plain language.
We cover gross yields, net yields, rent levels by apartment size, the best neighborhoods for rental demand, and all the costs that will eat into your profits.
We constantly update this blog post to keep the data fresh and reliable for your investment decisions.
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
What rental yields can I realistically get from an apartment in Dar es Salaam?
What's the average gross rental yield for apartments in Dar es Salaam as of 2026?
As of early 2026, the average gross rental yield for apartments in Dar es Salaam sits around 6% to 9%, with city center apartments averaging closer to 9% and properties outside the center closer to 6%.
Most apartment investments in Dar es Salaam fall within a realistic gross yield range of 5.5% to 9.5%, depending heavily on location and unit size.
The main factor driving yield differences in Dar es Salaam is whether your apartment is in an established, high-demand area like Masaki or Upanga versus newer developments in areas like Kigamboni, where tenant absorption can take 6 to 12 months.
Compared to other major East African cities, Dar es Salaam's gross yields are competitive with Nairobi and generally higher than Kampala, making it an attractive option for regional property investors.
What's the average net rental yield for apartments in Dar es Salaam as of 2026?
As of early 2026, the average net rental yield for apartments in Dar es Salaam (after operating costs but before mortgage interest) is around 5% to 6%.
Most apartment investors in Dar es Salaam can realistically expect net yields between 4.5% and 7%, with 5.5% to 6.5% being a very normal outcome if you buy sensibly and keep vacancy low.
The single biggest expense category that reduces gross yield to net yield in Dar es Salaam is building service charges combined with shared maintenance costs, which typically consume about 20% of your annual rent in a managed apartment block.
By the way, you will find much more detailed data in our property pack covering the real estate market in Dar es Salaam.
What's the typical rent-to-price ratio for apartments in Dar es Salaam in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Dar es Salaam ranges from about 5% to 9% annually, which means it takes roughly 11 to 17 years of rent to equal the purchase price.
Most apartment transactions in Dar es Salaam show rent-to-price ratios between 5.5% and 9.5%, with city center apartments at the higher end and suburban properties at the lower end of this range.
Apartments in neighborhoods like Sinza, Mwananyamala, and parts of Kinondoni tend to have the highest rent-to-price ratios because purchase prices are moderate relative to the strong local renter demand in these areas.
Get fresh and reliable information about the market in Dar es Salaam
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How much rent can I charge for an apartment in Dar es Salaam?
What's the typical tenant budget range for apartments in Dar es Salaam right now?
The typical monthly tenant budget for renting an apartment in Dar es Salaam ranges from about TZS 350,000 to TZS 6,200,000, which translates to roughly $140 to $2,500 USD or €130 to €2,300 EUR.
Tenants targeting mid-range apartments in Dar es Salaam typically budget between TZS 1,200,000 and TZS 2,500,000 per month, or about $480 to $1,000 USD (€440 to €920 EUR), and these renters usually look for parking, security, and reliable water supply.
For high-end or luxury apartments in areas like Masaki, Oyster Bay, and Msasani, tenants budget TZS 2,500,000 to TZS 6,200,000 or more per month, which is approximately $1,000 to $2,500 USD (€920 to €2,300 EUR), and these are often expat or corporate leases quoted in USD.
We have a blog article where we update the latest data about rents in Dar es Salaam here.
What's the average monthly rent for a 1-bed apartment in Dar es Salaam as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Dar es Salaam is around TZS 1,050,000, which equals roughly $420 USD or €385 EUR.
Entry-level 1-bed apartments in Dar es Salaam rent for about TZS 500,000 to TZS 700,000 per month ($200 to $280 USD, €185 to €260 EUR), and these are typically found in areas like Sinza or Mwananyamala with basic finishes and shared security.
Mid-range 1-bed apartments in Dar es Salaam rent for about TZS 800,000 to TZS 1,200,000 per month ($320 to $480 USD, €295 to €440 EUR), and these usually offer reliable water, decent security, and good road access in neighborhoods like Mikocheni or parts of Kinondoni.
High-end 1-bed apartments in Dar es Salaam rent for about TZS 1,400,000 to TZS 1,800,000 or more per month ($560 to $720 USD, €515 to €660 EUR), and these are typically in Masaki, Oyster Bay, or Msasani with air conditioning, backup power, and premium finishes.
What's the average monthly rent for a 2-bed apartment in Dar es Salaam as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Dar es Salaam is around TZS 1,850,000, which equals roughly $740 USD or €680 EUR.
Entry-level 2-bed apartments in Dar es Salaam rent for about TZS 900,000 to TZS 1,300,000 per month ($360 to $520 USD, €330 to €480 EUR), and these are typically older buildings in areas like Sinza or Mbezi with basic amenities and shared water tanks.
Mid-range 2-bed apartments in Dar es Salaam rent for about TZS 1,400,000 to TZS 2,000,000 per month ($560 to $800 USD, €515 to €735 EUR), and these usually include parking, 24-hour security, and air conditioning in at least the bedrooms in areas like Mikocheni or Upanga.
High-end 2-bed apartments in Dar es Salaam rent for about TZS 2,200,000 to TZS 3,500,000 or more per month ($880 to $1,400 USD, €810 to €1,290 EUR), and these are found in Masaki or Oyster Bay with generator backup, modern kitchens, and often sea views or pool access.
What's the average monthly rent for a 3-bed apartment in Dar es Salaam as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in Dar es Salaam is around TZS 2,270,000, which equals roughly $910 USD or €835 EUR.
Entry-level 3-bed apartments in Dar es Salaam rent for about TZS 1,200,000 to TZS 1,600,000 per month ($480 to $640 USD, €440 to €590 EUR), and these are typically in areas like Mbezi or outer Kinondoni with basic finishes and limited common area amenities.
Mid-range 3-bed apartments in Dar es Salaam rent for about TZS 1,800,000 to TZS 2,500,000 per month ($720 to $1,000 USD, €660 to €920 EUR), and these usually offer good security, parking, reliable water, and air conditioning in neighborhoods like Mikocheni or parts of Upanga.
High-end 3-bed apartments in Dar es Salaam rent for about TZS 3,000,000 to TZS 5,000,000 or more per month ($1,200 to $2,000 USD, €1,100 to €1,840 EUR), and these are found in Masaki, Oyster Bay, or Msasani with full generator backup, modern finishes, and often expatriate-focused building management.
How fast do well-priced apartments get rented in Dar es Salaam?
A well-priced apartment in an established area of Dar es Salaam typically rents within 3 to 14 days, with 2-bed flats in apartment blocks often finding tenants in as few as 3 to 6 days.
The typical vacancy rate for apartments in Dar es Salaam varies significantly by location, but in high-demand areas like Masaki, Upanga, and Mikocheni, it stays below 5%, while newer developments in areas like Kigamboni can sit vacant for 6 to 12 months.
The main factors that make some apartments rent faster in Dar es Salaam are reliable water supply with storage tanks, backup power for common areas, good road access to avoid traffic bottlenecks, and controlled security with an askari or gate system.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost 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.
Which apartment type gives the best yield in Dar es Salaam?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Dar es Salaam as of 2026?
As of early 2026, studios and 1-bed apartments in Dar es Salaam typically offer the best rental yields, followed by 2-beds which provide a strong balance, while 3-beds often have lower yields but attract more stable corporate or expat tenants.
In Dar es Salaam, studios and 1-beds generally achieve gross yields of 8% to 10%, 2-beds around 7% to 9%, and 3-beds typically 6% to 8%, though exact figures depend heavily on neighborhood and building quality.
The main reason smaller units outperform in Dar es Salaam is that the local renter pool is dominated by young professionals and smaller households who need affordable, well-located housing near employment centers, creating consistently higher demand per square meter for compact apartments.
Which features are best if you want a good yield for your apartment in Dar es Salaam?
The top features that positively impact rental yield in Dar es Salaam are reliable water supply with a storage tank, backup power (generator or inverter) for common areas or the unit, good security with controlled access, at least one parking spot, and air conditioning in bedrooms and living areas because of the coastal humidity.
In Dar es Salaam, middle floors (not ground, not top) tend to rent fastest because ground floors raise security concerns and top floors can be extremely hot without proper insulation or AC, especially in buildings without reliable power backup.
Apartments with balconies or outdoor space do command slightly higher rents in Dar es Salaam, particularly in expat-focused areas like Masaki and Oyster Bay, though the premium is modest compared to the value tenants place on functional features like water and power reliability.
Building features like working elevators, parking, and disciplined service-charge management do justify higher service charges in Dar es Salaam because tenants will pay more for buildings where the lift actually works, common areas are maintained, and utility costs are transparent.
Don't buy the wrong property, in the wrong area of Dar es Salaam
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
Which neighborhoods give the best rental demand for apartments in Dar es Salaam?
Which neighborhoods have the highest rental demand for apartments in Dar es Salaam as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Dar es Salaam are Masaki, Oyster Bay, Msasani, Upanga, Mikocheni, Sinza, and parts of Kinondoni and Mwananyamala.
The main demand driver in these Dar es Salaam neighborhoods is their proximity to major employment hubs, embassies, international organizations, and good schools, combined with established infrastructure like paved roads, reliable water networks, and accessible public transport connections.
In high-demand neighborhoods like Masaki, Oyster Bay, and Mikocheni, well-priced apartments typically rent within 3 to 14 days and vacancy rates stay below 5%, while newer developments in emerging areas can take much longer to fill.
One emerging neighborhood gaining rental demand momentum in Dar es Salaam is Mbezi Beach, which offers more affordable prices than the peninsula areas while still providing decent infrastructure and attracting families and middle-income professionals who want more space.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dar es Salaam.
Which neighborhoods have the highest yields for apartments in Dar es Salaam as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Dar es Salaam are Sinza, Mikocheni, Mbezi, and select pockets of Kigamboni, though Kigamboni comes with higher vacancy risk in newer schemes.
In these top-yielding Dar es Salaam neighborhoods, gross rental yields typically range from 8% to 11%, compared to 6% to 8% in premium areas like Masaki and Oyster Bay where purchase prices are much higher relative to achievable rents.
The main reason these neighborhoods offer higher yields in Dar es Salaam is that purchase prices remain moderate compared to achievable rents because they attract a deep pool of local middle-income renters who value convenience over prestige, without the premium price tag of expatriate-focused peninsular areas.
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.
Should I do long-term rental or short-term rental in Dar es Salaam?
Is short-term rental legal for apartments in Dar es Salaam as of 2026?
As of early 2026, short-term rental is legal in Dar es Salaam but it is treated as a regulated tourism and business activity rather than casual subletting, meaning you will need proper licensing to operate legally.
The main legal requirements for operating a short-term rental apartment in Dar es Salaam include obtaining a Tourism Business Licence (TTBL) from the Ministry of Natural Resources and Tourism, registering your business with the relevant authorities, and ensuring tax compliance with the Tanzania Revenue Authority.
For Airbnb-style rentals in Dar es Salaam, you must apply for a tourism licence through the ministry, potentially obtain a business licence from BRELA or local government, register for taxes, and comply with any building or lease restrictions that may prohibit short-term letting.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Dar es Salaam.
What's the gross yield difference short-term vs long-term in Dar es Salaam in 2026?
As of early 2026, short-term rentals in Dar es Salaam can generate 20% to 60% higher gross income than long-term rentals in peak locations like Masaki, Oyster Bay, and Msasani, but this premium shrinks significantly after accounting for higher costs and realistic occupancy rates.
Long-term rentals in Dar es Salaam typically achieve gross yields of 6% to 9%, while short-term rentals in prime locations can reach 8% to 12% gross yield after accounting for realistic occupancy, though non-prime areas may actually perform worse than long-term letting.
The main additional costs that reduce the net yield advantage of short-term rentals in Dar es Salaam are cleaning fees, platform commissions (typically 15% to 20%), furnishing and replacement costs, higher utility bills, and property management fees that can reach 25% to 35% of revenue for full-service STR management.
To outperform a long-term rental in Dar es Salaam, a short-term rental typically needs to achieve at least 55% to 65% occupancy throughout the year, which is challenging outside of the peak tourist season and in areas not frequented by business travelers or expatriates.
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.
What costs will eat into my net yield for an apartment in Dar es Salaam?
What are building service charges as a % of rent in Dar es Salaam as of 2026?
As of early 2026, building service charges for apartments in Dar es Salaam typically run about 15% to 20% of monthly rent, which works out to roughly TZS 185,000 to TZS 370,000 per month ($75 to $150 USD, €70 to €135 EUR) for a mid-range 2-bed apartment.
The realistic range of building service charges in Dar es Salaam covers 10% to 25% of rent, with basic buildings at the lower end and full-amenity buildings with lifts, generators, and security at the higher end, translating to TZS 100,000 to TZS 500,000 per month ($40 to $200 USD, €35 to €185 EUR).
In Dar es Salaam, the services that typically justify higher-than-average service charges are generator backup for common areas and water pumps, 24-hour security with CCTV, working elevators with regular maintenance, and professional building management that keeps transparent accounts and actually maintains shared facilities.
What annual maintenance budget should I assume for an apartment in Dar es Salaam right now?
A typical annual maintenance budget for an apartment in Dar es Salaam is about 1% to 1.5% of the property's value, which works out to roughly TZS 2,000,000 to TZS 3,000,000 per year ($800 to $1,200 USD, €735 to €1,100 EUR) for a mid-range 2-bed apartment.
The realistic range of annual maintenance costs in Dar es Salaam is 1% for newer units in well-managed buildings up to 2% to 2.5% for older buildings or properties with heavy AC usage, translating to TZS 1,500,000 to TZS 5,000,000 per year ($600 to $2,000 USD, €550 to €1,840 EUR) depending on apartment age and condition.
The most common maintenance expenses apartment owners face annually in Dar es Salaam are air conditioning servicing and repairs due to the humid coastal climate, water system maintenance including pumps and tanks, repainting and touch-ups due to salt air corrosion, and plumbing repairs because of inconsistent water pressure in many areas.
What property taxes should I expect for an apartment in Dar es Salaam as of 2026?
As of early 2026, the typical annual property tax (called property rate) for an apartment in Dar es Salaam is about TZS 90,000 per year for a storey building, which equals roughly $36 USD or €33 EUR.
The realistic range of property taxes in Dar es Salaam is TZS 18,000 to TZS 90,000 per year ($7 to $36 USD, €6 to €33 EUR), with the lower amount applying to standard buildings within a compound and the higher amount to multi-storey apartment buildings.
Property taxes in Dar es Salaam are calculated as flat annual rates set by the Finance Act rather than as a percentage of property value, and they are typically collected through deductions from electricity token purchases managed by the Tanzania Revenue Authority.
There are limited property tax exemptions available in Dar es Salaam, and most residential apartment owners pay the standard rates without reductions, though specific exemptions may apply to certain government or institutional properties.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Dar es Salaam.
How much does landlord insurance cost for an apartment in Dar es Salaam in 2026?
As of early 2026, the typical annual landlord insurance cost for an apartment in Dar es Salaam is about TZS 300,000 to TZS 600,000 per year, which equals roughly $120 to $240 USD or €110 to €220 EUR for basic building and liability cover.
The realistic range of annual landlord insurance costs in Dar es Salaam is TZS 300,000 to TZS 900,000 per year ($120 to $360 USD, €110 to €330 EUR), with the lower end covering basic perils like fire and theft and the higher end including contents coverage for furnished units and expanded liability protection.
What's the typical property management fee for apartments in Dar es Salaam as of 2026?
As of early 2026, the typical property management fee for apartments in Dar es Salaam is about 8% to 10% of monthly rent, which works out to roughly TZS 150,000 to TZS 185,000 per month ($60 to $75 USD, €55 to €70 EUR) for a mid-range 2-bed apartment.
The realistic range of property management fees in Dar es Salaam is 8% to 12% of monthly rent for full management, translating to TZS 100,000 to TZS 300,000 per month ($40 to $120 USD, €35 to €110 EUR), plus a letting fee of about one month's rent when placing a new tenant.
Standard property management fees in Dar es Salaam typically include rent collection, tenant communication, coordination of basic repairs, and regular property inspections, though finding tenants (often done through local agents called dalalis) usually costs extra as a one-time letting fee.
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 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) | Well-known African housing research institution with transparent methods. | We used its apartment yield table as our anchor for yield expectations. We also used its marketing-time and cost assumptions to estimate net yield ranges. |
| Tanzania Revenue Authority (Finance Act 2023) | Official legal text for tax changes from the national tax authority. | We used it to confirm property rate amounts and collection methods. We translated legal amounts into realistic annual costs for apartment owners. |
| Numbeo | Large global cost-of-living dataset with visible methodology and recent updates. | We used it for current rent and price benchmarks for different apartment sizes. We cross-checked implied yields against CAHF's independent benchmarks. |
| Bank of Tanzania | Official central bank exchange rate reference. | We used it to convert between USD and TZS at realistic early-2026 rates. We applied the same rate consistently across all calculations. |
| The Citizen (Mwananchi Communications) | Major national newspaper citing official TRA announcements. | We used it to verify practical property tax collection details. We treated it as corroboration of the Finance Act, not as a primary source. |
| Ministry of Natural Resources and Tourism (Tanzania) | Official government publication on tourism licensing requirements. | We used it to ground the short-term rental legality section. We combined it with the tourism licensing portal to describe the compliance path. |
| TiSEZA Tourism Licences Portal | Government procedure portal describing licensing in plain language. | We used it to confirm tourism facility licensing requirements. We used it as a cross-check alongside the ministry notice. |
| Tanzania National Business Portal | Government portal summarizing business licensing requirements. | We used it to explain that short-term letting as a business triggers licensing. We kept the STR section practical and compliance-focused. |
| Tanzania Revenue Authority (Tax Guidance) | Official tax authority guidance for taxpayers. | We used it to anchor the idea that rental income is taxable. We avoided relying on informal blog guidance about taxes. |
| Stanbic Bank Tanzania | Major bank describing mainstream insurance products offered locally. | We used it to validate what landlord insurance typically covers. We made the insurance section concrete and practical for readers. |
| Jubilee Allianz Tanzania | Large established insurer describing standard home cover products. | We used it to corroborate that home insurance is widely available. We used it as a practical cross-check to bank and regulator sources. |
Get to know the market before you buy a property in Dar es Salaam
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
Related blog posts
- Is now a good time to invest in property in Dar es Salaam?