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Property prices in Tanzania are experiencing strong growth in 2025, with Dar es Salaam leading at $3,820 per m² in prime areas.
The Tanzanian property market offers competitive prices compared to other African cities, with five-year real growth of 86.65% and projected annual appreciation of 4-6% through 2026. Current mortgage rates at 15% make financing more accessible than in previous years.
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 property market in 2025 shows strong fundamentals with Dar es Salaam averaging $3,820/m² in prime areas and Zanzibar reaching $2,500/m².
The market has delivered exceptional five-year growth of 86.65% and is projected to continue appreciating at 4-6% annually through infrastructure development and urbanization.
| City | Price Range per m² | 5-Year Growth | 2025 Annual Growth |
|---|---|---|---|
| Dar es Salaam | $300 - $3,820 | +86.65% | 5-7% |
| Zanzibar | $1,500 - $2,500 | +86.65% | 8-10% |
| Arusha | $900 - $1,200 | +86.65% | 4-6% |
| Mwanza | $800 - $1,000 | +86.65% | 4-5% |
| Dodoma | $600 - $900 | +86.65% | 6-8% |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the current property prices per square meter in major Tanzanian cities?
As of September 2025, Dar es Salaam commands the highest property prices in Tanzania, with prime areas averaging $3,820 per square meter.
City center apartments in Dar es Salaam are significantly more affordable at around $300 per square meter, while suburban properties reach $625 per square meter. This wide price range reflects the city's diverse housing market from basic accommodations to luxury developments.
Zanzibar properties typically range between $1,500 and $2,500 per square meter in sought-after locations. The island's tourism-driven market supports higher valuations, particularly in areas close to beaches and tourist attractions.
Arusha offers more affordable entry points, with properties starting near $900 to $1,200 per square meter. This northern city benefits from its proximity to major national parks while maintaining lower cost structures than coastal areas.
| City | Prime Areas ($/m²) | City Center ($/m²) | Suburban Areas ($/m²) |
|---|---|---|---|
| Dar es Salaam | $3,820 | $300 | $625 |
| Zanzibar | $2,500 | $1,800 | $1,500 |
| Arusha | $1,200 | $900 | $950 |
| Mwanza | $1,000 | $800 | $850 |
| Dodoma | $900 | $600 | $700 |
| Mbeya | $800 | $500 | $600 |
| Morogoro | $750 | $450 | $550 |
How do Tanzanian property prices compare to other African cities?
Tanzania's property market positions itself competitively within the East African region, offering better value than Kenya while outperforming Uganda in terms of growth potential.
Dar es Salaam's price range of $1,200 to $3,820 per square meter sits below Nairobi's luxury segment of $1,500 to $4,000 per square meter. However, Tanzania's five-year real growth of 86.65% significantly outpaces Kenya's 40-60% growth rate over the same period.
Compared to Rwanda's capital Kigali, which ranges from $1,000 to $2,500 per square meter, Tanzania shows stronger performance with higher maximum prices in prime locations. Both markets benefit from government infrastructure investments, but Tanzania's coastal advantage provides additional tourism-driven demand.
Uganda's Kampala offers the most affordable prices at $500 to $1,200 per square meter, but Tanzania's superior growth trajectory and economic stability make it more attractive for investors seeking appreciation potential.
It's something we develop in our Tanzania property pack.
What are the current property price trends in Tanzania?
The Tanzanian property market demonstrates robust growth momentum in 2025, with annual appreciation rates varying significantly across major cities.
Dar es Salaam is experiencing 5-7% annual price growth in 2025, driven by continued urbanization and infrastructure development. The city benefits from its status as the commercial capital and major port, attracting both domestic and foreign investment.
Zanzibar leads the market with 8-10% annual price growth, reflecting strong tourism recovery and increased international interest in island properties. The combination of cultural heritage sites and pristine beaches creates sustained demand from both investors and end-users.
Over the past five years from 2020 to 2025, Tanzania achieved exceptional property price growth of 86.65% on an inflation-adjusted basis. This performance reflects the country's economic stability, GDP growth of 6%, and substantial infrastructure commitments totaling $13.5 billion.
Foreign investment projects increased by 63%, contributing to market confidence and driving demand across residential, commercial, and mixed-use developments. The government's focus on urbanization and improved business environment continues to support positive market sentiment.
What are the property price forecasts for Tanzania?
Tanzania's property market is projected to maintain strong appreciation through 2026, with nationwide growth expected at 4-6% annually.
Dar es Salaam specifically is likely to see 5-7% growth per year through 2026, supported by ongoing port expansion, industrial development, and population growth. The city's role as East Africa's gateway ensures continued investment interest.
The residential sector shows a compound annual growth rate (CAGR) of 4.74% for the 2024-2028 period. This sustained growth reflects balanced supply and demand dynamics as developers respond to market needs without oversupplying.
Looking ahead to 2035, Tanzania's urbanization trajectory presents exceptional growth potential. The population is expected to jump from 25 million to 45 million by 2030, creating sustained housing demand. New infrastructure projects including the Standard Gauge Railway and Southern Highlands development corridor will likely drive regional price premiums of 10-20%.
The government's commitment to infrastructure spending and improved investment climate suggests the positive growth trend will continue throughout the decade, making Tanzania one of Africa's most promising property markets.
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What additional costs should buyers expect when purchasing property in Tanzania?
Property buyers in Tanzania should budget for additional costs totaling 4-7% of the purchase price beyond the property value itself.
Stamp duty typically ranges from 1-2% of the property value, depending on the transaction type and property category. This government tax is mandatory for all property transfers and must be paid before registration.
Legal fees generally cost 1-2% of the purchase price and cover due diligence, contract review, and transaction completion. Engaging qualified local legal counsel is essential given Tanzania's specific property laws and foreign ownership regulations.
Registration fees vary by location and property type but represent a necessary expense for completing the legal transfer. Valuation fees, agency commissions, and comprehensive due diligence costs add to the total transaction expense.
Additional expenses may include property surveys, environmental assessments, and title verification services. Foreign buyers should particularly budget for comprehensive legal review to ensure compliance with ownership regulations and lease arrangements.
What are current mortgage rates and financing options in Tanzania?
Tanzania's mortgage market has become more accessible with current interest rates around 15%, representing a significant improvement from the 22% rates of previous years.
Banks offer both fixed and variable-rate mortgage products, with terms varying by lender and borrower profile. The reduction in interest rates reflects improved monetary policy and increased competition among financial institutions.
Middle-class buyers benefit from improved financing accessibility, with several banks introducing specialized mortgage products targeting this demographic. Government initiatives to support homeownership have encouraged banks to expand their lending programs.
Foreign buyers face additional requirements including higher down payment ratios and proof of income from reliable sources. Some banks require foreign borrowers to maintain local accounts and demonstrate established business relationships in Tanzania.
The mortgage market continues evolving with new financial products and improved processing times, making property acquisition more feasible for qualified buyers across different income levels.
How do rental yields vary across different property types and locations?
Tanzania offers attractive rental yields across various property types, with gross yields typically ranging from 6-12% depending on location and property category.
Dar es Salaam delivers rental yields of 6-10% for residential properties, with higher returns available in suburban areas and gated communities. The city's growing expatriate population and expanding middle class ensure steady rental demand.
Zanzibar excels in short-term rental yields, often exceeding 8-12% for properties in tourist areas. The combination of international tourism and domestic travel creates year-round occupancy potential for well-positioned properties.
Affordable housing segments throughout Tanzania provide robust yields around 7-8%, driven by strong demand from the expanding urban population. These properties benefit from government incentives and middle-class housing programs.
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.
What are the best areas for different investment strategies in Tanzania?
Tanzania offers distinct opportunities for various investment approaches, with specific locations favoring different strategies.
For long-term residential investment, Masaki, Mbezi Beach, Oyster Bay, and Kigamboni in Dar es Salaam represent prime choices. These areas feature gated communities and new suburban developments that attract affluent families and expatriates seeking quality housing.
Short-term rental investors should focus on Zanzibar's tourist zones, city center apartments in Dar es Salaam, and Mwanza's lakeside areas. These locations benefit from consistent tourist flow and business travel, supporting higher occupancy rates and premium pricing.
Property flipping opportunities exist in mixed-use developments and areas near new infrastructure projects. The Standard Gauge Railway corridor and Southern Highlands regions offer potential for significant appreciation as infrastructure completion drives demand.
1. **Luxury Developments**: New projects in Masaki and Oyster Bay with premium amenities2. **Tourist Properties**: Beachfront and heritage area properties in Stone Town, Zanzibar3. **Infrastructure Plays**: Properties along planned transport corridors and utility projects4. **Affordable Housing**: Government-supported developments targeting middle-class buyers5. **Commercial Mixed-Use**: Properties combining retail, office, and residential componentsEach strategy requires different investment timelines and risk tolerances, but Tanzania's growing economy supports multiple approaches simultaneously.
Which are the most expensive and most affordable neighborhoods in Tanzania?
Tanzania's property market shows significant price variation between premium and affordable locations, offering options for different budget levels.
The most expensive neighborhoods include Masaki and Oyster Bay in Dar es Salaam, where prime properties command premium pricing due to proximity to beaches, embassies, and international schools. These areas attract wealthy expatriates and successful local professionals seeking luxury accommodations.
Beachfront properties in Zanzibar also rank among the most expensive, particularly those with direct ocean access and heritage significance. Stone Town properties with restoration potential or completed renovations command substantial premiums.
The most affordable options include Kigamboni, the outskirts of Mwanza, and Southern Highlands regions including Mbeya, Njombe, and Iringa. These areas offer entry-level pricing while maintaining growth potential as infrastructure development reaches them.
Emerging areas like Dodoma benefit from government relocation plans, offering affordable entry points with potential for significant appreciation as the administrative capital develops. Rural areas near major cities provide the lowest cost options with longer-term development potential.
What are the smartest property investment choices in Tanzania today?
Tanzania's current market conditions favor several specific investment categories that align with economic trends and demographic shifts.
Luxury apartments and mixed-use developments offer the highest appreciation potential, especially those featuring premium amenities like swimming pools, security services, and modern infrastructure. These properties attract both local affluent buyers and international investors.
Affordable housing represents a fast-growing segment due to government incentives and expanding middle-class demand. Developers focusing on this segment benefit from supportive policies and consistent buyer interest.
Properties near infrastructure projects anticipate 10-20% price premiums when new transport, water, or energy facilities become operational. Strategic positioning near planned developments offers significant upside potential.
1. **Gated Community Apartments**: High-security developments in Dar es Salaam suburbs2. **Tourism-Focused Properties**: Short-term rental units in Zanzibar and Arusha3. **Mixed-Use Developments**: Properties combining residential, retail, and office space4. **Government Housing Projects**: Affordable units supported by national housing initiatives5. **Infrastructure Corridor Properties**: Land and buildings near planned rail and road projectsIt's something we develop in our Tanzania property pack.
What are the legal requirements for foreign property ownership in Tanzania?
Foreign property ownership in Tanzania operates under specific legal frameworks that require careful navigation and professional guidance.
Foreigners cannot own land directly in Tanzania but can obtain long-term leaseholds up to 99 years or use approved investment vehicles. These arrangements provide effective ownership rights while complying with national land laws.
Recent reforms have streamlined legal processes, improved transparency, and enhanced access for diaspora and regional African investors. The government recognizes foreign investment's importance and has simplified procedures accordingly.
Due diligence becomes particularly critical for foreign buyers, requiring engagement with local legal experts to navigate title verification and compliance requirements. Professional legal counsel helps ensure proper documentation and regulatory adherence.
Approved investment vehicles include partnerships with Tanzanian citizens, corporate structures meeting specific requirements, and designated investment zones with special provisions. Each option has distinct advantages and limitations that require professional evaluation.
The legal landscape continues evolving to attract foreign investment while protecting national interests, making current legal advice essential for any foreign property transaction in Tanzania.
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 property market in 2025 presents exceptional opportunities with strong fundamentals and projected continued growth.
Whether you're seeking affordable entry points or luxury investments, the market offers diverse options backed by infrastructure development and economic stability.