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House prices in Tanzania vary dramatically across regions and property types, with Dar es Salaam city center apartments averaging $300 per square meter while Zanzibar City center properties reach $3,700 per square meter.
As of June 2025, the Tanzanian real estate market shows steady growth with 3-7% annual price increases in urban centers, driven by urbanization and infrastructure development. Foreign buyers face higher transaction costs and limited mortgage access, while locals benefit from improving financing options with interest rates dropping to 15-19% from previous highs of 22%. Understanding these price variations and market dynamics is crucial for making informed property investment decisions in Tanzania.
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.
Tanzania's housing market offers diverse price points from $36,000 starter homes in suburban Dar es Salaam to $500,000+ luxury properties in prime locations.
Transaction costs range 5-10% of property value, making cash purchases more common especially for foreign buyers who face mortgage accessibility challenges.
| Location | Property Type | Average Price per sqm | Typical Property Price Range |
|---|---|---|---|
| Dar es Salaam City Center | Apartment | $300 (751,000 TSh) | $100,000 - $440,000 |
| Dar es Salaam Suburbs | Apartment | $625 (1,564,000 TSh) | $36,000 - $190,000 |
| Zanzibar City Center | Apartment | $3,700 (9,290,000 TSh) | $200,000 - $600,000+ |
| Zanzibar Suburbs | Apartment | $1,100 (2,787,000 TSh) | $80,000 - $300,000 |
| National Average | New Houses | $1,200 | $70,000 - $90,000 |
| Dodoma | Mixed Residential | $800 - $1,200 | $50,000 - $150,000 |
| Arusha | Mixed Residential | $700 - $1,100 | $60,000 - $200,000 |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
How much does a house cost in different parts of Tanzania?
House prices in Tanzania vary significantly based on location, with Dar es Salaam and Zanzibar commanding the highest prices while rural areas offer more affordable options.
In Dar es Salaam city center, apartments average $300 per square meter (approximately 751,000 TSh), while suburban areas cost around $625 per square meter (1,564,000 TSh). Zanzibar represents the premium market with city center apartments reaching $3,700 per square meter (9,290,000 TSh) and suburban properties at $1,100 per square meter (2,787,000 TSh).
Dodoma, as the capital city, shows growing demand with properties ranging from $50,000 to $150,000 for standard residential units. Arusha, popular among tourists and expats, offers mid-range pricing between $60,000 and $200,000 for most properties. Mwanza and other regional centers typically price 30-40% below Dar es Salaam levels.
Premium neighborhoods like Masaki and Oyster Bay in Dar es Salaam can reach $410,000-$440,000 for quality apartments, while budget-friendly areas like Tabata and Mbezi Mwisho offer starter homes from $36,000-$50,000.
As we reach mid-2025, these regional price differences continue to widen as urban centers attract more investment and development.
What are the average prices for different types of properties—apartments, townhouses, villas, plots?
Property prices vary substantially by type, with luxury villas commanding the highest prices and studio apartments offering the most affordable entry point.
| Property Type | Average Price 2025 (TZS) | Average Price 2025 (USD) | Typical Size (sqm) |
|---|---|---|---|
| Studio Apartment | 77,250,000–80,250,000 | $30,900–$32,100 | 30 |
| City Apartment | 154,500,000–160,500,000 | $61,800–$64,200 | 60 |
| Modern Apartment | 206,000,000–214,000,000 | $82,400–$85,600 | 75 |
| Loft | 257,500,000–267,500,000 | $103,000–$107,000 | 80 |
| Townhouse | 721,000,000–749,000,000 | $288,400–$299,600 | 150 |
| Luxury Villa | 515,000,000–535,000,000 | $206,000–$214,000 | 100 |
| Urban Plot (per sqm) | 51,500–160,500 | $20.60–$64.20 | Variable |
Townhouses represent the premium residential segment, particularly popular among families and expat communities seeking space and privacy. Luxury villas, while smaller in average size than townhouses, command high prices due to their prime locations and high-end finishes.
It's something we develop in our Tanzania property pack.
How do house prices vary depending on the size or surface area of the property?
Property prices in Tanzania follow a clear pattern based on size, with larger properties generally offering better value per square meter in suburban areas.
The national average for new builds stands at $1,200 per square meter, but this varies significantly by location and property size. In Dar es Salaam, prices range from $1,200 per square meter for average properties up to $3,820 per square meter in prime urban areas like Masaki and Oyster Bay.
Zanzibar city center commands the highest per-square-meter prices at $3,700, reflecting its tourism-driven premium market. Suburban and rural areas offer more affordable options starting from $600 per square meter, making them attractive for buyers seeking larger properties or investment opportunities.
Properties under 50 square meters typically carry a premium per square meter due to high demand for compact urban living. Mid-size properties (75-150 sqm) offer the best value proposition, while larger properties (200+ sqm) may see slightly reduced per-square-meter rates but require significantly higher total investment.
The size premium is most pronounced in city centers where land scarcity drives up costs for any available space.
What are the total costs involved in buying a house in Tanzania, including taxes, legal fees, and agent commissions?
Total transaction costs in Tanzania typically range from 5-10% of the property value, representing a significant additional expense that buyers must budget for beyond the purchase price.
| Cost Component | Rate | Paid By | Notes |
|---|---|---|---|
| Stamp Duty | 1% | Buyer | Government tax on property transfer |
| Registration Fee | 0.25% | Buyer | Official property registration |
| Notary Fee | 1-3% | Buyer | Document authentication and witnessing |
| Legal Fees | 1-2% | Buyer | Lawyer services for due diligence |
| Agent Commission | 5-10% | Buyer | Real estate agent services |
| Valuation Fee | 0.1% | Seller | Professional property assessment |
| Land Rent/Property Tax | Variable | Ongoing | Annual government fees |
Foreign buyers face additional documentation requirements and may incur facilitation or translation fees, potentially adding another 1-2% to the total cost. These costs can quickly accumulate, making it essential to budget accordingly when planning a property purchase.
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How accessible are mortgages for foreigners or locals, and what are the typical interest rates and terms?
Mortgage accessibility in Tanzania varies significantly between local and foreign buyers, with locals enjoying much better access and terms.
Local Tanzanians benefit from improved mortgage conditions as of 2025, with interest rates dropping to 15-19% from previous highs of 22%. Local banks offer more flexible terms, typically requiring 10-20% down payments and providing loan terms of 15-25 years. The government's housing finance initiatives have made mortgages more accessible for citizens.
Foreign buyers face considerably more challenges in securing mortgages, with most banks requiring 20-30% down payments and offering higher interest rates of 15-20%. Loan terms are typically shorter at 10-20 years, and the approval process involves extensive documentation including proof of income, employment history, and sometimes local guarantors.
Cash purchases dominate the foreign buyer market due to these mortgage constraints, with many international investors choosing to finance properties through offshore arrangements or personal liquidity rather than local banking systems.
It's something we develop in our Tanzania property pack.
Which neighborhoods or cities in Tanzania are considered the most expensive, up-and-coming, or budget-friendly?
Tanzania's real estate market shows clear segmentation between premium, emerging, and affordable areas across different cities and regions.
Most Expensive Areas:
In Dar es Salaam, Masaki, Oyster Bay, Mikocheni, and Mbezi Beach represent the premium market, attracting diplomats, expatriates, and wealthy locals with oceanfront properties and high-end amenities. Zanzibar's Stone Town, Paje, Nungwi, Kendwa, and Matemwe command premium prices driven by luxury tourism and international investment.
Up-and-Coming Neighborhoods:
Sinza, Kariakoo, Tegeta, Tabata, and Kigamboni in Dar es Salaam are experiencing rapid development due to infrastructure upgrades and new residential projects. Dodoma's Chimwaga, Nkuhungu, and Kisasa areas are growing rapidly due to the government's relocation to the new capital. Arusha's Njiro, Usa River, and Sakina benefit from eco-tourism growth and residential expansion.
Budget-Friendly Options:
Tabata, Mbezi Mwisho, Kinyerezi, and the outskirts of Tegeta and Kigamboni offer affordable entry points into the Dar es Salaam market. These areas provide good connectivity to the city center while maintaining lower property costs, making them ideal for first-time buyers and investment opportunities.
As of June 2025, the gap between premium and budget areas continues to widen, creating distinct market segments for different buyer categories.
How have property prices in Tanzania changed over the past five years and in the past year?
Tanzania's property market has demonstrated consistent growth over the past five years, with urban centers leading price appreciation trends.
The five-year trend shows annual growth rates of 3-7% in major urban centers, particularly in Dar es Salaam and Dodoma. This steady appreciation reflects ongoing urbanization, infrastructure development, and increased foreign investment in the real estate sector. Zanzibar has experienced even stronger growth due to tourism expansion and international buyer interest.
In the past year (2024-2025), property prices have continued this upward trajectory with a projected 3-7% increase across major markets. Dar es Salaam residential market shows particular strength in suburban areas where new developments are meeting growing demand from the expanding middle class.
Rental yields have remained attractive at 6-9% in prime areas, supporting continued investment interest. The market drivers include rapid urbanization, government infrastructure projects like the standard gauge railway, and sustained economic growth averaging 5-6% annually.
Regional variations exist, with Dodoma experiencing accelerated growth due to its status as the administrative capital, while coastal areas benefit from tourism-related demand.
What are the short-term, mid-term (5 years), and long-term (10 years) price forecasts for Tanzanian real estate?
Tanzania's real estate market forecasts indicate continued growth across all time horizons, driven by fundamental economic and demographic trends.
Short-term (2025): Property prices are expected to increase by 3-7% across major urban centers, with Dar es Salaam and Dodoma leading growth. This reflects ongoing infrastructure projects and sustained urban migration patterns.
Mid-term (5 years): Continued steady growth is anticipated in urban centers, particularly benefiting from major infrastructure projects including port expansions, railway developments, and new industrial zones. Government initiatives to promote affordable housing will create new market segments while premium areas maintain their appreciation rates.
Long-term (10 years): Tanzania's urban population is expected to nearly double over the next decade, creating substantial housing demand. Major cities will likely see sustained price appreciation as infrastructure improvements reduce development constraints and economic growth supports increased purchasing power.
The long-term outlook remains positive due to Tanzania's young population, natural resource wealth, and strategic position in East Africa's growing economy.
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 does the Tanzanian housing market compare to similar cities or countries in East Africa or other emerging markets?
Tanzania's housing market shows competitive positioning within East Africa, offering attractive pricing compared to regional capitals while providing solid rental yields.
Dar es Salaam's average price of $1,200 per square meter compares favorably to Nairobi's $1,235 per square meter, offering similar value with potentially higher growth prospects. However, Dar es Salaam rental prices average $775 per month for one-bedroom city center apartments, significantly higher than Nairobi's $444 per month, indicating stronger rental market dynamics.
Compared to other East African markets, Tanzania offers lower entry costs than Kenya while providing better infrastructure and political stability than many regional alternatives. The rental yields of 6-9% in prime areas exceed those found in more mature markets like South Africa or Ghana.
Against broader emerging markets, Tanzania presents a compelling investment case with its combination of economic growth, natural resource wealth, and relatively underdeveloped real estate market offering upside potential. The country's strategic position as a gateway to landlocked neighbors adds to its long-term appeal.
Currency stability and government policies favorable to foreign investment further strengthen Tanzania's competitive position in the regional market.
What are some real-life examples of property sale prices in different Tanzanian regions?
Recent property transactions across Tanzania provide concrete examples of current market pricing across different regions and property types.
Dar es Salaam Examples:
In Masaki, premium apartments recently sold for approximately $440,000, while similar properties in Oyster Bay reached $410,000. These represent the top tier of the urban market with ocean access and premium amenities.
Budget and Mid-Range Options:
Starter homes in Tabata and Mbezi Mwisho range from $36,000-$50,000, offering entry-level opportunities for local buyers and small investors. Mid-range properties in Sinza and Mikocheni typically sell between $100,000-$150,000, representing the core market for middle-class families.
Luxury Segment:
Luxury beachfront villas in Salasala and Bahari Beach command prices from $190,000 upward, with premium properties exceeding $300,000. PSPF Towers in central Dar es Salaam offers three-bedroom apartments priced between $350,000-$500,000.
Zanzibar Market:
City center apartments in Zanzibar reflect the $3,700 per square meter average, while suburban properties at $1,100 per square meter offer more affordable island living options.
It's something we develop in our Tanzania property pack.
What are the smartest real estate investment strategies in Tanzania right now—buy-to-rent short-term, long-term, or flip for resale?
Tanzania's real estate market offers multiple viable investment strategies, each suited to different investor profiles and market conditions.
Buy-to-Rent Long-Term Strategy:
This strategy offers strong fundamentals with rental yields of 6-9% in prime urban and tourist areas. Dar es Salaam's growing expat community and Zanzibar's tourism sector provide stable tenant demand. Long-term rentals benefit from currency stability and consistent income streams.
Short-Term Rental Opportunities:
High demand exists in Zanzibar, Arusha, and parts of Dar es Salaam due to tourism growth. Short-term rentals can achieve higher yields but require active management and marketing expertise. The strategy works best in tourist-accessible areas with reliable infrastructure.
Buy-to-Flip Strategy:
Viable in up-and-coming neighborhoods with new infrastructure development, but requires market knowledge and renovation expertise. Areas like Sinza, Tegeta, and parts of Dodoma offer flip opportunities, though oversupplied areas carry higher risks.
Land Investment:
Urban plots appreciate fastest, particularly in development corridors. Rural plots offer slower but steadier growth, suitable for long-term holding strategies. Government infrastructure projects can significantly impact land values.
What's the best approach if I want to buy to live in the house versus renting it out or reselling it later?
The decision between buying to live, renting, or planning for resale depends on your timeline, financial situation, and personal circumstances in Tanzania.
Buy-to-Live Strategy:
Best suited for individuals planning to stay in Tanzania for 5+ years, offering long-term stability, equity building, and complete customization freedom. Consider this approach if you have stable income, plan to establish roots in Tanzania, and want to avoid rental market uncertainties. The high transaction costs (5-10%) make shorter-term ownership less economical.
Renting Alternative:
Offers maximum flexibility for shorter stays or uncertain plans, requiring lower upfront capital and providing easier relocation options. Ideal for expatriates on fixed-term contracts, newcomers testing different neighborhoods, or those preferring liquidity over real estate investment.
Buy-for-Future-Resale:
Requires careful market analysis and neighborhood selection, focusing on areas with strong growth prospects like emerging districts in Dar es Salaam or Dodoma. This strategy works best when combined with rental income during the holding period, typically requiring 3-5 year minimum holding periods to justify transaction costs.
Consider your visa status, employment stability, and long-term Tanzania plans when making this decision, as these factors significantly impact the optimal strategy choice.
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 real estate market offers diverse opportunities across different price segments and regions, from affordable starter homes in suburban Dar es Salaam to luxury properties in Zanzibar's tourism zones.
Success in this market requires understanding the significant transaction costs, limited mortgage accessibility for foreigners, and the importance of choosing the right location based on your investment strategy and personal circumstances.
Sources
- The Property Hub TZ - Understanding Property Prices in Tanzania
- The African Vestor - Tanzania Real Estate Market
- The African Vestor - Tanzania Price Forecasts
- The African Vestor - Dar es Salaam Property
- Global Property Guide - Tanzania Square Meter Prices
- Tanzania Invest - Properties
- Global Property Guide - Tanzania Buying Guide
- The African Vestor - Tanzania Real Estate for Foreigners
- The African Vestor - How to Buy House in Tanzania
- Tanzania Invest - Mortgages