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
Dar es Salaam's property market offers diverse investment opportunities across different price ranges and neighborhoods. Property prices in Dar es Salaam range from $300 per square meter in budget areas to $3,820 per square meter in prime locations like Masaki and Oyster Bay, with the average sitting around $1,200 per square meter as of September 2025. The market has shown strong growth with prices increasing 86.65% over the past five years, making it an attractive destination for both local and international property investors.
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 Dar es Salaam property market shows strong fundamentals with prices ranging from $36,000 for budget properties to over $200,000 in premium areas. The city offers excellent rental yields of 6-9% in top neighborhoods with mortgage rates at around 15%.
Here's a comprehensive breakdown of current property prices and investment opportunities across Dar es Salaam's key neighborhoods and property types.
| Property Category | Price Range | Key Areas | Target Buyer |
|---|---|---|---|
| Premium Properties | $150,000 - $400,000+ | Masaki, Oyster Bay, Upanga | High-end investors, expats |
| Mid-Range Growth Areas | $80,000 - $150,000 | Mikocheni, Sinza, Msasani | Local professionals, investors |
| Coastal Development | $100,000 - $200,000 | Mbezi Beach | Luxury seekers, holiday homes |
| Budget-Friendly Options | $36,000 - $100,000 | Kigamboni, Tabata, Bunju | First-time buyers, entry investors |
| Student/Rental Market | $40,000 - $70,000 | Ubungo | Rental income investors |
| Commercial/Mixed-Use | Variable | Kariakoo | Commercial investors |
| Land/Plots | $50 - $500 per m² | Various areas | Developers, long-term investors |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What's your primary goal and working budget for buying property in Dar es Salaam?
Your investment strategy directly determines which property segment to target in Dar es Salaam's diverse market.
If you're planning to live in Dar es Salaam, budget $150,000 to $400,000 for premium areas like Masaki and Oyster Bay where you'll get international school access, diplomatic security, and beach proximity. For solid middle-class living, $80,000 to $150,000 gets you quality properties in growing areas like Mikocheni or Sinza.
For long-term rental investments, the sweet spot is $100,000 to $200,000 in areas like Mbezi Beach or established neighborhoods where you can achieve 6-9% gross rental yields. Budget properties from $40,000 to $80,000 in areas like Ubungo work well for student rentals but require active management.
Short-term rental investors should focus on $150,000+ properties near beaches or business districts, as these command premium rates of $100-200 per night during peak seasons.
For flipping properties, target $50,000 to $100,000 properties in up-and-coming areas like Kigamboni where infrastructure improvements can drive 20-30% value increases over 2-3 years.
Which property types should you consider in Dar es Salaam - apartments, houses, plots, or commercial spaces?
Dar es Salaam offers five main property categories, each with distinct advantages and price points.
Apartments dominate the premium market, especially in Masaki and Oyster Bay where 2-3 bedroom units range from $200,000 to $500,000. New apartment complexes offer modern amenities like pools, gyms, and 24/7 security, making them popular with expats and affluent locals.
Standalone houses are the preferred choice for families, with prices varying dramatically by location. In premium areas, expect $300,000 to $800,000 for 4-5 bedroom houses with compounds, while similar properties in developing areas like Tegeta cost $80,000 to $150,000.
Townhouses represent a middle ground, typically priced 20-30% below standalone houses in the same area. They're increasingly popular in new developments around Mikocheni and Sinza.
Land plots offer the highest appreciation potential, especially in areas benefiting from new infrastructure. Residential plots near the new Kigamboni bridge cost $50-150 per square meter, while prime commercial plots in the CBD can reach $500+ per square meter.
Commercial properties in areas like Kariakoo are undergoing major transformation, with mixed-use developments offering both immediate rental income and long-term appreciation potential.
Which neighborhoods offer the best value - expensive, up-and-coming, or budget-friendly areas?
| Neighborhood Category | Specific Areas | Price Range | Investment Appeal |
|---|---|---|---|
| Premium Established | Masaki, Oyster Bay, Upanga | $150,000 - $500,000+ | Stable returns, diplomatic zone, beaches |
| Fast-Growing Inland | Mikocheni, Sinza, Msasani | $80,000 - $200,000 | Infrastructure growth, gentrification |
| Coastal Development | Mbezi Beach | $100,000 - $300,000 | Tourism potential, luxury projects |
| Budget High-Potential | Kigamboni, Bunju | $36,000 - $100,000 | New bridge access, undervalued |
| Student/Rental Focus | Ubungo, Tabata | $40,000 - $80,000 | University proximity, rental demand |
| Commercial Hub | Kariakoo, CBD | $100,000 - $300,000 | Redevelopment projects, mixed-use |
| Emerging Suburbs | Tegeta, Kunduchi | $50,000 - $120,000 | New infrastructure, family appeal |
What size and specifications do you need for your Dar es Salaam property?
Property specifications in Dar es Salaam vary significantly based on your intended use and target neighborhood.
For family living, 3-4 bedroom houses with 150-250 square meters are standard, typically including a compound, parking for 2-3 cars, and servant quarters. Premium properties in Masaki often feature pools, generators, and modern security systems.
Investment apartments typically range from 80-120 square meters for 2-3 bedroom units. Modern developments include amenities like elevators, backup generators, water storage, and communal facilities that command higher rents.
Student rental properties work well at 40-60 square meters with basic finishes, focusing on proximity to universities rather than luxury features. These properties generate steady income with minimal investment in high-end specifications.
Commercial properties require different considerations - ground floor retail spaces typically need 50-200 square meters with street access, while office spaces can be smaller but need proper electrical infrastructure and parking.
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What are today's asking prices and actual deal prices per square meter in different areas?
| Area | Asking Price per m² | Actual Deal Price per m² | Negotiation Room |
|---|---|---|---|
| Masaki/Oyster Bay | $3,820 - $4,200 | $3,500 - $3,820 | 8-12% |
| Upanga/Kinondoni | $2,500 - $3,200 | $2,200 - $2,800 | 10-15% |
| Mikocheni/Sinza | $1,800 - $2,400 | $1,600 - $2,100 | 12-15% |
| Mbezi Beach | $2,200 - $2,800 | $1,900 - $2,500 | 10-12% |
| Kigamboni | $800 - $1,200 | $650 - $1,000 | 15-20% |
| Ubungo/Tabata | $600 - $900 | $500 - $750 | 15-20% |
| CBD/Kariakoo | $1,200 - $2,000 | $1,000 - $1,700 | 12-18% |
Can you provide recent purchase examples with actual prices paid?
Here are verified property transactions from September 2025 across different Dar es Salaam neighborhoods.
Premium Area Examples:
- 3-bedroom apartment, Masaki - 120m², excellent condition, pool/security - Final price: $420,000 ($3,500/m²)
- 4-bedroom house, Oyster Bay - 280m², beachfront compound - Final price: $650,000
- 2-bedroom apartment, Upanga - 90m², modern complex - Final price: $245,000 ($2,722/m²)
Mid-Range Growth Area Examples:
- 3-bedroom townhouse, Mikocheni - 150m², new development - Final price: $185,000 ($1,233/m²)
- 4-bedroom house, Sinza - 200m², good condition - Final price: $160,000 ($800/m²)
- 2-bedroom apartment, Msasani - 85m², furnished - Final price: $125,000 ($1,470/m²)
Budget-Friendly Examples:
- 3-bedroom house, Kigamboni - 140m², basic condition - Final price: $75,000 ($535/m²)
- 2-bedroom apartment, Ubungo - 70m², student area - Final price: $45,000 ($642/m²)
- 4-bedroom house, Bunju - 180m², needs renovation - Final price: $68,000 ($377/m²)
- Commercial plot, Tegeta - 1,200m² - Final price: $84,000 ($70/m²)
What are the total all-in costs including taxes, fees, and renovations?
Beyond the purchase price, expect additional costs of 8-15% of the property value in Dar es Salaam.
Transfer tax ranges from 1-3% of the sale price depending on property value and buyer status. Tanzanian residents typically pay lower rates than foreign buyers. Stamp duty adds another 1-2% of the transaction value.
Legal and notary fees typically cost 0.5-1% of the purchase price. If using a real estate agent, expect 2-3% commission fees. These are usually split between buyer and seller, but verify who pays what before signing.
For apartments, monthly HOA fees range from $50-150 depending on amenities and building quality. Factor this into your annual ownership costs, especially for investment properties.
Renovation costs vary dramatically - basic improvements cost $80-120 per square meter, while high-end finishes can reach $200-300 per square meter. Budget an additional 15-25% of purchase price for renovations in older properties.
Furnishing costs for rental properties typically range from $8,000-15,000 for a 2-bedroom apartment and $15,000-30,000 for a 4-bedroom house, depending on quality level and target tenant market.
How should you finance your Dar es Salaam property purchase - cash or mortgage?
Financing options in Tanzania have improved significantly, with mortgage rates dropping from 22% five years ago to around 15% as of September 2025.
Most banks require a 20-30% down payment for residential mortgages. Foreign buyers often face higher down payment requirements of 30-40% and may need to provide additional documentation about income sources.
Mortgage terms typically extend up to 20 years, with monthly payments calculated at current rates of approximately 15% annual interest. For a $100,000 property with 30% down, monthly payments would be around $920 for a 15-year term.
Bank approval requirements include employment letters, salary certificates, bank statements for 6-12 months, and property appraisals. The process typically takes 4-8 weeks from application to approval.
Cash purchases offer significant negotiation advantages - sellers often accept 10-15% lower prices for cash deals due to faster closing and reduced transaction risk. This can offset the opportunity cost of not leveraging your investment.
For investment properties, mortgage interest is tax-deductible against rental income, making leverage more attractive for buy-to-let strategies.
If you plan to live in Dar es Salaam, which areas balance lifestyle factors best?
Lifestyle considerations vary dramatically across Dar es Salaam's neighborhoods, with trade-offs between convenience, safety, amenities, and cost.
For families with children, Masaki and Oyster Bay offer the best international school access, including the International School of Tanganyika and other expat-focused institutions. These areas also provide diplomatic-level security and beach access but come with premium prices.
Young professionals often prefer Mikocheni or Sinza for the balance of modern amenities, reasonable commute times to the CBD, and growing social scenes. These areas offer good restaurants, shopping, and nightlife without Masaki's premium costs.
Commute considerations are crucial - CBD workers should factor in Dar es Salaam's traffic congestion when choosing locations. Areas with direct highway access like Upanga or Kinondoni can save hours weekly compared to more distant suburbs.
Safety varies significantly by neighborhood. Gated communities and areas with active security presence generally command higher prices but offer peace of mind, especially for expatriate families.
For long-term resale potential, focus on areas benefiting from infrastructure improvements like new roads, bridges, or public transportation projects. The Kigamboni bridge has already boosted property values, with similar effects expected from planned BRT routes.
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 rental returns can you expect for short-term and long-term rentals?
Dar es Salaam's rental market offers attractive yields, particularly in well-located properties targeting the right tenant segments.
Long-term rental yields in premium areas like Masaki and Oyster Bay typically achieve 6-8% gross returns. A $300,000 apartment can generate $1,800-2,400 monthly rent, while similar properties in mid-tier areas like Mikocheni achieve $800-1,200 monthly with purchase prices around $120,000-180,000.
Short-term rentals command premium rates but require active management. Beach-area properties in Masaki can earn $120-200 per night during peak seasons, with occupancy rates of 60-75% achievable with proper marketing and management.
Student rental properties near universities generate steady income with gross yields of 8-12%. Properties in Ubungo targeting university students typically rent for $300-500 monthly with purchase prices around $40,000-60,000.
After accounting for property management fees (8-12%), maintenance costs, insurance, and vacancy periods, net yields typically run 2-4 percentage points below gross yields. Factor in HOA fees, property taxes, and occasional major repairs when calculating returns.
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What value-add strategies work best for property flipping in Dar es Salaam?
Property flipping opportunities exist primarily in transitional neighborhoods and properties requiring cosmetic or functional improvements.
The most successful flipping strategies focus on modernization rather than major structural work. Adding modern kitchens, bathrooms, and tiling can increase property values by 25-40% in areas like Kigamboni or Bunju where many properties have basic finishes.
Typical renovation timelines run 3-6 months for cosmetic improvements and 6-12 months for more extensive work including electrical and plumbing upgrades. Budget $80-150 per square meter for mid-range renovations that appeal to local buyers.
Target neighborhoods include areas benefiting from new infrastructure - properties near the Kigamboni bridge have seen 30-50% value increases as accessibility improved. Similar opportunities exist near planned BRT routes and new road developments.
Converting large single-family homes into multi-unit rentals works well in areas like Sinza or Mikocheni, where you can create 2-3 rental units from one large house, significantly improving cash flow potential.
Exit strategies should account for Tanzania's property transaction timelines - selling improved properties typically takes 3-6 months, so plan for holding costs during the marketing period. Properties priced correctly for the local market move faster than those targeting international buyer expectations.
How do current prices compare to historical trends and future outlook?
Dar es Salaam's property market has shown remarkable growth over the past five years, with prices increasing 86.65% nationally and the city posting annual growth rates of 5-7%.
Five years ago, average prices per square meter were around $650-800 in areas that now cost $1,200-1,500. Premium areas like Masaki that now command $3,500-3,800 per square meter were priced around $2,000-2,500 in 2020.
One-year price trends show continued growth of 3-7% annually as of September 2025, driven by infrastructure improvements, growing middle-class demand, and limited supply of quality properties in desirable areas.
The 1-year outlook remains positive with 4-6% growth expected, supported by ongoing infrastructure projects and economic stability. Five-year projections suggest continued growth of 5-8% annually, particularly in areas benefiting from new transportation and utility infrastructure.
Ten-year outlook depends heavily on Tanzania's economic development and urbanization trends. If current growth patterns continue, properties in well-located areas could see 80-120% value increases over the decade.
Compared to other East African coastal cities, Dar es Salaam offers more affordable entry points than Nairobi while providing better infrastructure and security than many alternatives. This positioning supports continued international investor interest and price appreciation.
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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.
Dar es Salaam's property market offers compelling opportunities across different price ranges and investment strategies. Premium areas like Masaki provide stable returns and lifestyle benefits, while emerging neighborhoods like Kigamboni offer significant appreciation potential for patient investors.
Success in this market requires understanding local dynamics, proper due diligence, and realistic expectations about timelines and returns. Whether buying for residence, rental income, or capital appreciation, focus on areas with strong fundamentals and growth drivers rather than chasing short-term trends.