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
Buying property in Dar es Salaam as a foreigner can feel overwhelming because the rules work differently here than in most Western countries.
We constantly update this blog post to give you the freshest data and neighborhood insights available for Dar es Salaam's real estate market in 2026.
This guide breaks down exactly which areas offer the best yields, which ones are rising fast, and which neighborhoods you should probably skip.
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's the Current Real Estate Market Situation by Area in Dar es Salaam?
Which areas in Dar es Salaam have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Dar es Salaam are Masaki, Oyster Bay, and Msasani, all located on the prestigious Msasani Peninsula that commands premium prices due to embassy presence and corporate housing demand.
In these prime Dar es Salaam neighborhoods, typical property prices range from 4,750,000 to 7,000,000 Tanzanian Shillings per square meter for apartments, with a central estimate around 5,750,000 TZS per square meter.
Each of these top-tier Dar es Salaam neighborhoods commands premium prices for distinct reasons:
- Masaki: home to major embassies and international schools, creating steady expatriate tenant demand
- Oyster Bay: waterfront positioning with the city's most established luxury housing stock
- Msasani: proximity to Sea Cliff and upscale restaurants plus newer apartment developments with amenities
- Sea Cliff: direct Indian Ocean views and the area's most exclusive residential addresses
Which areas in Dar es Salaam have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Dar es Salaam for property buyers are Mbagala, Tabata, Kigogo, and Vingunguti, where prices remain accessible but come with infrastructure trade-offs.
In these budget-friendly Dar es Salaam neighborhoods, typical property prices range from 750,000 to 2,250,000 Tanzanian Shillings per square meter for apartments, with a central estimate around 1,625,000 TZS per square meter.
The main trade-off in these lower-priced Dar es Salaam areas is that buyers often face longer commute times, seasonal flooding risks in low-lying zones, and less reliable utilities, which means you need to verify the exact street and drainage history before committing.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Dar es Salaam Offer the Best Rental Yields?
Which neighborhoods in Dar es Salaam have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Dar es Salaam with the highest gross rental yields are Ubungo, Mwenge, Tegeta, and selected pockets of Mbezi Beach, where yields can reach 7% to 11% annually for well-located properties.
Across Dar es Salaam as a whole, typical gross rental yields for investment properties range from about 5% to 9%, with the sweet spot for most foreign investors sitting around 7% to 8% in middle-market areas.
These high-yielding Dar es Salaam neighborhoods outperform others for specific reasons:
- Ubungo: major transport node with strong local professional tenant demand and lower entry prices
- Mwenge: proximity to Mlimani City mall creates steady rental demand from young professionals
- Tegeta: northward city expansion brings new infrastructure while prices remain moderate
- Mbezi Beach: beach access appeals to tenants but purchase prices stay below peninsula levels
Finally, please note that we cover the rental yields in Dar es Salaam here.
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Which Areas in Dar es Salaam Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Dar es Salaam perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Dar es Salaam that perform best on Airbnb are Masaki, Oyster Bay, Msasani, and Upanga East, where business travelers and visiting professionals drive the strongest occupancy rates averaging around 40%.
In these top-performing Dar es Salaam short-term rental areas, properties typically generate between 3,500,000 and 6,500,000 Tanzanian Shillings per month when professionally managed, though actual results depend heavily on property quality and guest reviews.
Each of these Dar es Salaam neighborhoods succeeds in short-term rentals for distinct reasons:
- Masaki: embassy proximity means steady NGO and corporate visitor bookings year-round
- Oyster Bay: upscale restaurants and cafes nearby attract business travelers wanting convenience
- Msasani: newer apartment buildings with generators and security packages appeal to guests
- Upanga East: central location captures overflow demand at lower nightly rates than peninsula
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Dar es Salaam.
Which tourist areas in Dar es Salaam are becoming oversaturated with short-term rentals?
The three areas in Dar es Salaam showing signs of short-term rental oversaturation are Masaki, Msasani, and Oyster Bay, where the concentration of similar apartment listings has intensified competition significantly.
In these oversaturated Dar es Salaam zones, AirDNA reports approximately 3,133 active listings citywide with the majority clustered on the Msasani Peninsula, meaning many comparable units compete for the same guest pool.
The clearest indicator that these Dar es Salaam areas have reached oversaturation is that average daily rates hover around only 140,000 TZS (about $56 USD) despite being in premium locations, which suggests supply has caught up with demand and is pushing prices down.
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 Areas in Dar es Salaam Are Best for Long-Term Rentals?
Which neighborhoods in Dar es Salaam have the strongest demand for long-term tenants?
The neighborhoods in Dar es Salaam with the strongest long-term tenant demand are Masaki, Oyster Bay, Upanga East, and Mikocheni, where expatriate housing budgets and corporate relocation packages keep vacancy rates low.
In these high-demand Dar es Salaam rental neighborhoods, well-priced properties in good condition typically find tenants within two to four weeks, especially during the corporate relocation seasons at the start of each year.
Different tenant profiles drive demand across these Dar es Salaam neighborhoods:
- Masaki: embassy staff and international organization employees on housing allowances
- Oyster Bay: senior executives and diplomatic families seeking established luxury homes
- Upanga East: mid-level professionals and small business owners wanting central access
- Mikocheni A and B: young professionals and growing families priced out of the peninsula
The key characteristic making these Dar es Salaam neighborhoods attractive to long-term tenants is reliable infrastructure, meaning consistent power supply, paved roads, and proximity to international schools, hospitals, and shopping centers that expats and professionals need daily.
Finally, please note that we provide a very granular rental analysis in our property pack about Dar es Salaam.
What are the average long-term monthly rents by neighborhood in Dar es Salaam in 2026?
As of early 2026, average long-term monthly rents in Dar es Salaam range from about 625,000 TZS in affordable areas like Tabata up to 10,500,000 TZS for premium three-bedroom apartments in Masaki and Oyster Bay.
In the most affordable Dar es Salaam neighborhoods like Tabata and Mbagala, entry-level apartments typically rent for between 625,000 and 1,500,000 Tanzanian Shillings per month.
In mid-range Dar es Salaam neighborhoods like Kijitonyama, Sinza, and Mwenge, average apartments rent for between 1,750,000 and 4,250,000 Tanzanian Shillings per month depending on size and condition.
In the most expensive Dar es Salaam neighborhoods like Masaki, Oyster Bay, and Sea Cliff, high-end three-bedroom apartments rent for between 7,000,000 and 10,500,000 Tanzanian Shillings per month, with Knight Frank reporting a benchmark of about 8,750,000 TZS for prime stock.
You may want to check our latest analysis about the rents in Dar es Salaam here.
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Which Are the Up-and-Coming Areas to Invest in Dar es Salaam?
Which neighborhoods in Dar es Salaam are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Dar es Salaam that are gentrifying and attracting new investors include Kijitonyama, Mikocheni B, Mwenge, and selected pockets of Tegeta, where improved retail and services are drawing professional tenants.
These gentrifying Dar es Salaam neighborhoods have experienced rent growth of approximately 8% to 12% annually in recent years, driven by spillover demand from the increasingly expensive Msasani Peninsula.
Which areas in Dar es Salaam have major infrastructure projects planned that will boost prices?
The areas in Dar es Salaam with major infrastructure projects expected to boost property prices are the Kimara-Ubungo corridor, Mbagala-side transport routes, and zones near the port and central business district.
Specific projects driving these Dar es Salaam infrastructure improvements include the DART BRT Phase 5 expansion improving commuter access, the EU-funded port modernization project worth 15 million euros, and Tanzania's $3.1 billion Standard Gauge Railway connecting Dar es Salaam to inland cities.
Historically in Dar es Salaam, areas that gained reliable BRT access have seen property values increase by 15% to 25% within three to five years of service launch, though results vary significantly by exact location.
You'll find our latest property market analysis about Dar es Salaam here.
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 Areas in Dar es Salaam Should I Avoid as a Property Investor?
Which neighborhoods in Dar es Salaam with lots of problems I should avoid and why?
The neighborhoods in Dar es Salaam that investors should generally approach with extra caution include Vingunguti, Kigogo, parts of Tabata, and flood-prone pockets of Mbagala, where infrastructure challenges create ongoing investment risks.
Each of these Dar es Salaam neighborhoods has specific issues that affect investment returns:
- Vingunguti: severe seasonal flooding damages properties and causes tenant turnover
- Kigogo: congested roads and weak drainage make daily commutes unreliable for tenants
- Parts of Tabata: inconsistent title documentation requires extra legal due diligence
- Low-lying Mbagala: flood risk zones combined with distance from employment centers
For any of these Dar es Salaam neighborhoods to become viable investment options, they would need significant drainage infrastructure upgrades, improved road access, and clearer land title processes, which typically requires years of municipal investment.
Buying a property in the wrong neighborhood 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 in Dar es Salaam have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Dar es Salaam showing stagnant or declining property prices are primarily overbuilt apartment zones outside the peninsula core and peripheral areas where promised transport improvements have not materialized.
These underperforming Dar es Salaam areas have experienced rental growth of less than 3% annually over the past two to three years, compared to 15% to 20% growth in prime peninsula locations over the same period.
The underlying causes of price stagnation differ across these Dar es Salaam areas:
- Generic apartments far from Msasani Peninsula: oversupply of similar units competing on price alone
- Peripheral zones with delayed BRT access: expected connectivity gains have not yet arrived
- Areas marketed as "near prime" but lacking infrastructure: gap between marketing claims and reality
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Which Areas in Dar es Salaam Have the Best Long-Term Appreciation Potential?
Which areas in Dar es Salaam have historically appreciated the most recently?
The areas in Dar es Salaam that have historically appreciated the most over the past five to ten years are Oyster Bay, Masaki, Msasani, and Sea Cliff on the Msasani Peninsula, where expatriate demand has consistently driven values upward.
These top-performing Dar es Salaam areas have achieved notable appreciation:
- Oyster Bay: approximately 15% to 20% rent growth over the past two years alone
- Masaki: prime three-bedroom apartment rents up roughly 21% over five years
- Msasani: steady gains tracking closely with the broader peninsula premium
- Sea Cliff: waterfront scarcity has maintained values even during slower periods
The main driver behind above-average appreciation in these Dar es Salaam areas is the combination of limited supply of quality housing stock on the peninsula and sustained demand from embassies, international organizations, and multinational corporations that pay market rates for staff accommodation.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Dar es Salaam.
Which neighborhoods in Dar es Salaam are expected to see price growth in coming years?
The neighborhoods in Dar es Salaam expected to see the strongest price growth in coming years are Mikocheni B, Kijitonyama, selected Ubungo pockets, and waterfront areas of Kigamboni, where improving infrastructure meets strong rental demand.
Projected growth rates for these high-potential Dar es Salaam neighborhoods vary:
- Mikocheni B: expected 8% to 12% annual growth from peninsula spillover demand
- Kijitonyama: projected 7% to 10% growth due to central location and professional tenants
- Selected Ubungo pockets: potential 10% to 15% gains if BRT access improves as planned
- Kigamboni waterfront: longer-term 5% to 8% growth as the city expands southward
The single most important catalyst for future price growth in these Dar es Salaam neighborhoods is the completion of BRT expansion phases and port modernization projects that will reduce commute times and increase employment opportunities in surrounding areas.
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 Do Locals and Expats Really Think About Different Areas in Dar es Salaam?
Which areas in Dar es Salaam do local residents consider the most desirable to live?
The areas in Dar es Salaam that local residents consider most desirable to live are Kijitonyama, Mikocheni, Sinza, and Mwenge, where good services and reasonable commutes combine without the premium prices of expatriate zones.
Each of these locally-preferred Dar es Salaam neighborhoods offers distinct qualities:
- Kijitonyama: central location with easy access to both the CBD and northern suburbs
- Mikocheni: well-established residential character with schools and health facilities nearby
- Sinza: affordable housing options with decent road connections to employment centers
- Mwenge: proximity to Mlimani City mall and university campuses for families
The typical residents in these locally-preferred Dar es Salaam areas are Tanzanian middle-class professionals, government employees, small business owners, and young families seeking safe neighborhoods with reliable services.
Local preferences in Dar es Salaam often differ from what foreign investors target, because locals prioritize value for money and community ties, while foreigners typically focus on the peninsula areas that command higher rents but may offer lower yields.
Which neighborhoods in Dar es Salaam have the best reputation among expat communities?
The neighborhoods in Dar es Salaam with the best reputation among expat communities are Masaki, Oyster Bay, Msasani, Sea Cliff, Upanga East, and Mikocheni A, where international schools, embassies, and familiar amenities create comfortable living environments.
Expats prefer these Dar es Salaam neighborhoods for clear reasons:
- Masaki: walkable to embassies, international schools, and expatriate-oriented restaurants
- Oyster Bay: established luxury character with mature gardens and reliable security
- Msasani: newer apartment options with modern amenities like gyms and pools
- Upanga East: more affordable alternative with good hospital and shopping access
The typical expat profile in these popular Dar es Salaam neighborhoods includes embassy personnel, NGO workers, multinational company managers, and international school teachers, most of whom receive housing allowances that support premium rental rates.
Which areas in Dar es Salaam do locals say are overhyped by foreign buyers?
The areas in Dar es Salaam that locals commonly say are overhyped by foreign buyers are Masaki, parts of Msasani, and beach-adjacent developments marketed with aspirational branding that exceeds daily-life reality.
Locals believe these Dar es Salaam areas are overvalued for specific reasons:
- Non-core Masaki: marketed as "prime" but actually far from embassy zones with weaker infrastructure
- Generic Msasani apartments: premium prices for buildings without genuine waterfront or amenities
- Beach-adjacent developments: "ocean lifestyle" marketing but beaches often not usable daily
Foreign buyers typically see prestige and rental potential in these Dar es Salaam areas, while locals know that the actual daily convenience, security, and infrastructure quality varies dramatically even within the same neighborhood.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Dar es Salaam.
Which areas in Dar es Salaam are considered boring or undesirable by residents?
The areas in Dar es Salaam that residents commonly consider boring or undesirable are far-periphery zones with limited retail and services, plus areas where flooding or traffic congestion makes daily life frustrating.
Residents find these Dar es Salaam areas unappealing for practical reasons:
- Distant Ubungo outskirts: few restaurants, shops, or entertainment options nearby
- Flood-prone Vingunguti: seasonal water damage disrupts normal routines repeatedly
- Congested Kigogo: unreliable commute times make professional life stressful
- Isolated peripheral developments: car-dependent living with limited public transport
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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 |
|---|---|---|
| Bank of Tanzania | It's the central bank's own daily exchange rate publication. | We used it to anchor all USD to TZS conversions to real early-2026 reference points. We avoided made-up currency assumptions when comparing prices and rents. |
| Knight Frank Tanzania | It's a global real estate consultancy with documented research methodology. | We used it for prime rental benchmarks in Dar es Salaam, including Oyster Bay and Masaki rent levels. We treated it as the prime segment anchor and scaled estimates for other neighborhoods. |
| Housing Finance Africa | It's a specialist housing research body used by development finance institutions. | We used it to understand Dar es Salaam's real housing market structure beyond expat areas. We used it to define what "affordable" actually means in local housing realities. |
| AirDNA | It's a widely used short-term rental data provider with standardized metrics. | We used it to quantify Airbnb occupancy, average daily rates, and listing growth in Dar es Salaam. We used those numbers to identify where STR economics are thin versus promising. |
| IMF Tanzania | It's the IMF's standardized country data hub with forward projections. | We used it to ground early-2026 macro assumptions about growth and inflation direction. We triangulated it with World Bank and AfDB data to avoid single-source bias. |
| DART Agency | It's an official project document from Dar es Salaam's BRT operator. | We used it to identify where transport improvements will likely reprice housing over time. We combined it with neighborhood price levels to spot yield-plus-upside zones. |
| National Bureau of Statistics | It's the official statistics agency's main census data release portal. | We used it to ground population distribution and growth pressure analysis by area. We paired it with market sources for pricing since the census doesn't publish price data. |
| RE/MAX Tanzania | It's a global brokerage brand with more structured listings than classifieds. | We used it to triangulate asking prices and typical unit sizes by neighborhood. We combined it with other portals and prime benchmarks to estimate yields. |
| TradeMark Africa | It's a major regional trade NGO with funded, named infrastructure projects. | We used it to substantiate the port and logistics upgrade thesis with specific project details. We translated that into where worker and manager housing demand intensifies. |
| Reuters | It's a top-tier newswire with strong sourcing and editorial controls. | We used it to confirm the scale and timing of Tanzania's Standard Gauge Railway project. We connected it to Dar es Salaam submarkets benefiting from improved business travel. |
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