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Tanzania's real estate market has experienced remarkable growth, with property prices rising 86.65% over the past five years. House prices in Tanzania vary significantly depending on location and property type, with Dar es Salaam leading as the most expensive market at $3,820 per square meter.
If you want to go deeper, you can check our pack of documents related to the real estate market in Tanzania, based on reliable facts and data, not opinions or rumors.
The median price for a newly built house in Tanzania ranges from $70,000 to $90,000, with significant regional variations across the country.
Dar es Salaam commands the highest prices at $3,820 per square meter, while more affordable options exist in the Southern Highlands and emerging markets like Mwanza.
| Location | Average Price per m² | Typical House Price Range |
|---|---|---|
| Dar es Salaam (City Center) | $3,820 | $150,000 - $300,000+ |
| Zanzibar Stone Town | $1,000 - $1,500 | $80,000 - $200,000 |
| Zanzibar Luxury Areas | $2,400 - $2,800+ | $200,000 - $500,000+ |
| National Average | $1,200 | $70,000 - $90,000 |
| Dar es Salaam Suburbs | $625 | $60,000 - $120,000 |
| Mwanza/Southern Highlands | $400 - $800 | $40,000 - $80,000 |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What is the average price of a house in Tanzania right now?
As of September 2025, the median price for a newly built house in Tanzania is $70,000 to $90,000.
The national average price per square meter for residential real estate is approximately $1,200, though this varies significantly by location and property quality. Urban centers command much higher prices than rural or developing areas.
In major cities like Dar es Salaam, house prices can reach $150,000 to $300,000 or more for quality properties, while in emerging markets like Mwanza or the Southern Highlands, you can find decent houses for $40,000 to $80,000. The Tanzanian residential market has shown strong growth, with prices increasing 86.65% over the past five years.
Foreign buyers should note that these prices reflect the current strong demand and limited supply in desirable areas, particularly in coastal regions and major commercial centers.
How much does the cost vary depending on the type of property?
Property costs in Tanzania vary dramatically based on type, with apartments generally being the most affordable option and luxury detached houses commanding premium prices.
| Property Type | National Average ($/m²) | Dar es Salaam ($/m²) | Zanzibar Stone Town ($/m²) |
|---|---|---|---|
| City Apartment | $1,200 | $3,820 | $1,000 - $1,500 |
| Suburban Apartment | $625 | $625 | $800 - $1,200 |
| Townhouse | $1,200+ | $3,820 approx. | $1,500+ |
| Detached House (Standard) | $1,200+ | $3,000 - $5,000 | $1,800 - $2,400 |
| Luxury Detached House | $2,000+ | $7,000+ | $2,400 - $2,800+ |
Which areas in Tanzania have the highest property prices?
Dar es Salaam dominates Tanzania's high-end property market, with specific neighborhoods commanding premium prices that rival international markets.
The most expensive areas in Dar es Salaam include Masaki, Oyster Bay, and the Msasani Peninsula, where luxury properties can exceed $7,000 per square meter. These neighborhoods offer proximity to diplomatic quarters, international schools, and premium shopping centers.
Zanzibar's luxury market centers around Stone Town and beachfront developments, with Fumba Uptown Living featuring properties up to $12 million. Coastal properties with ocean views in Zanzibar regularly command $2,400 to $2,800+ per square meter.
Arusha, serving as the gateway to Tanzania's northern safari circuit, also commands higher prices due to tourism demand, though still below Dar es Salaam levels. Properties near Kilimanjaro International Airport and safari lodges see particular premium pricing.
Are there specific regions where property prices are more affordable?
The Southern Highlands region offers Tanzania's most affordable property options while still providing good infrastructure and growth potential.
Cities like Njombe, Iringa, Rukwa, and Mbeya benefit from ongoing infrastructure improvements but maintain significantly lower property prices than coastal areas. These regions typically offer houses for $40,000 to $80,000, representing excellent value for money.
Mwanza and the Ilemela District present emerging opportunities with lower entry costs than Dar es Salaam but stronger growth prospects than more remote areas. The Lake Victoria region is experiencing industrial development that supports property appreciation.
Rural areas and smaller towns throughout Tanzania offer the lowest property prices, often under $30,000 for basic houses, but may lack modern amenities and reliable utilities that international buyers expect.
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What's the price per square meter in different neighborhoods?
Neighborhood pricing in Tanzania shows extreme variation, with premium areas in Dar es Salaam costing more than 10 times the national average.
| Location/Neighborhood | Price per m² (USD) | Typical Property Type |
|---|---|---|
| Dar es Salaam City Center | $300 - $3,820 | Apartments, Commercial |
| Dar es Salaam Suburbs | $625 | Family Houses, Condos |
| Masaki/Oyster Bay (Dar) | $5,000 - $7,000+ | Luxury Villas, Compounds |
| Zanzibar Stone Town | $1,000 - $1,500 | Historic Properties, Apartments |
| Zanzibar Beachfront | $2,400 - $2,800+ | Luxury Villas, Resorts |
| Arusha Center | $800 - $1,500 | Mixed Commercial/Residential |
| Mwanza | $400 - $800 | Family Houses, Apartments |
What additional costs should be expected when buying property?
Property buyers in Tanzania should budget an additional 2-5% of the purchase price for mandatory fees and taxes beyond the property cost.
Stamp duty represents the largest additional cost at approximately 1% of the property value, applied to all property transfers. Registration fees and notary/legal fees add another 0.5-1% to the total transaction cost.
If using a real estate agent, commission typically ranges from 1-5% of the property value, though this varies based on the agent and property type. International buyers often face higher agent fees due to additional services required.
Mortgage-related costs include inspection fees, valuation fees, and bank processing charges that can add $1,000-3,000 to the purchase process. Transfer charges and various government fees contribute additional smaller amounts to the total cost.
What are the current mortgage rates and their impact on total price?
Current mortgage interest rates in Tanzania average 15%, down from previous highs of 22%, but still represent a significant cost factor for property purchases.
For a typical $90,000 house financed over 20 years at 15% interest, monthly payments would be approximately $1,185, excluding insurance and property taxes. This translates to total payments of approximately $284,400 over the loan term.
The high interest rates mean that financing costs can exceed the original property value over the loan duration, making cash purchases more attractive when possible. Many international buyers choose shorter loan terms or larger down payments to minimize interest costs.
Local banks offer various mortgage products, but foreign buyers typically face stricter requirements including higher down payments (often 30-40%) and proof of stable international income. Some buyers opt for financing in their home countries if available at lower rates.
What are the typical costs of living in a house versus renting it out?
Homeowner costs in Tanzania include utilities, maintenance, property taxes, and community fees that typically total $200-500 monthly for a standard house.
- Utilities: Electricity, water, and internet typically cost $80-150 monthly depending on usage and location
- Maintenance: Regular upkeep averages $50-150 monthly for painting, repairs, and garden maintenance
- Security: Private security or guard services cost $100-300 monthly in urban areas
- Property taxes: Annual property tax ranges from 0.1-0.3% of property value
- Community fees: Gated communities charge $50-200 monthly for shared amenities and services
Rental income potential varies significantly by location, with urban areas in Dar es Salaam and Arusha generating 6-8% annual yields on average. Tourist areas like Zanzibar can achieve higher yields but require more active management.
It's something we develop in our Tanzania property pack.
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.
Is it more profitable to rent short-term to tourists or long-term to residents?
Short-term tourist rentals in Tanzania's prime locations can generate significantly higher returns than long-term residential leases, but require more intensive management and carry greater risks.
In Zanzibar's Stone Town, short-term rentals can achieve 12-15% annual yields compared to 6-8% for long-term residential rentals. Tourist hotspots near Stone Town, beaches, and safari areas command premium nightly rates during peak seasons.
Long-term residential rentals provide more stable, predictable income with less management overhead and lower vacancy risks. This option works particularly well in Dar es Salaam's business districts where expatriate professionals seek quality housing.
Arusha benefits from both safari tourism and business travelers, allowing property owners to potentially combine short-term holiday rentals with longer-term corporate housing arrangements. The key success factor is location proximity to tourist attractions or business centers.
Regulatory considerations favor long-term rentals, as short-term vacation rentals face increasing government oversight and potential licensing requirements, particularly in Zanzibar's heritage areas.
What's the potential for reselling a house at a higher price in the next few years?
Tanzania's property market shows strong resale potential, with nationwide prices having risen 86.65% over the past five years, indicating robust appreciation trends.
Dar es Salaam properties have experienced 5-7% annual growth consistently, driven by economic expansion, infrastructure investment, and increasing foreign business presence. This trend is expected to continue through 2026-2027.
Zanzibar properties show even stronger appreciation potential with annual price growth of 8-10%, supported by tourism development and government investment in island infrastructure. Beachfront and Stone Town properties particularly benefit from limited supply and growing demand.
Urban centers and coastal tourist areas demonstrate the best potential for continued resale value increases, while rural properties may see slower but still positive appreciation. Infrastructure projects like the Standard Gauge Railway boost property values along transport corridors.
The key to maximizing resale value is choosing properties in areas with ongoing development, good infrastructure, and either business or tourism potential.
How have property prices in Tanzania changed over the last 5 years?
Tanzanian property prices have shown remarkable growth over the past five years, with nationwide increases of 86.65% representing one of Africa's strongest performing real estate markets.
Dar es Salaam has led this growth with consistent 5-7% annual appreciation, driven by economic development, infrastructure improvements, and increased foreign investment. The city's status as East Africa's major port has attracted international businesses and expatriate professionals.
Southern Highlands and Mwanza regions have shown strong upward trends, though lagging behind major urban centers. These areas benefit from agricultural development and mining activities that support local property demand.
Zanzibar's tourism boom has created exceptional property appreciation, with some beachfront areas seeing over 100% price increases during this period. Government investment in tourism infrastructure continues to drive demand for quality properties.
This growth trajectory reflects Tanzania's overall economic expansion, political stability, and increasing integration with global markets, making it an attractive destination for property investment.
How do house prices in Tanzania compare to other African cities?
Tanzania's property market, particularly Dar es Salaam, now competes directly with other major African cities, offering competitive pricing with strong growth potential.
| City/Region | Average Price Comparison | Market Position |
|---|---|---|
| Dar es Salaam vs Nairobi (3-bed house) | 15-20% less expensive | Better value for large properties |
| Dar es Salaam vs Nairobi (city center) | 1.4% higher | Competitive pricing |
| Dar es Salaam vs Nairobi (suburbs) | 102.9% higher | Premium suburban market |
| Zanzibar vs Cape Town | 30-40% less expensive | Emerging luxury market |
| Tanzania vs Lagos | 20-30% less expensive | More affordable entry point |
It's something we develop in our Tanzania property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Tanzania's housing market presents compelling opportunities for both investors and residents, with strong price appreciation and diverse options across different regions.
The combination of economic growth, infrastructure development, and increasing international interest positions Tanzania as an attractive African property market for the coming years.