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Dar es Salaam's property market is currently experiencing steady growth with average prices at $1,200 per square meter and annual growth of 5-7%.
The city offers strong investment opportunities with rental yields ranging from 6-9% in prime areas, while several neighborhoods remain undervalued with significant growth potential. Transaction costs typically range from 5-10% of property value, and the market shows improving liquidity with resales taking 30-90 days on average.
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.
Property prices in Dar es Salaam average $1,200 per square meter with consistent 5-7% annual growth expected to continue.
Prime areas like Masaki and Upanga offer 6-9% rental yields, while emerging neighborhoods like Mbezi Beach and Kigamboni present strong growth potential.
| Area | Average Price/sqm | Rental Yield | Growth Potential |
|---|---|---|---|
| City Center | $1,200 | 6-8% | Moderate |
| Masaki/Oyster Bay | $3,800+ | 6-9% | Steady |
| Mbezi Beach | $625-1,200 | 5-7% | High |
| Kigamboni | $625-1,200 | 5-7% | Very High |
| Upanga | $1,200-3,820 | 6-9% | High |
| Mikocheni | $800-1,500 | 5-7% | High |
| Bunju/Tabata | $500-800 | 4-6% | Very High |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are current property prices in different areas of Dar es Salaam?
Property prices in Dar es Salaam vary significantly by location, with the city center averaging $1,200 per square meter as of September 2025.
City center apartments average about 751,237 TSh (approximately $300) per square meter, while luxury oceanfront areas like Masaki and Oyster Bay exceed $3,800 per square meter. Suburban areas such as Mbezi Beach, Kigamboni, and Upanga see prices ranging from $625 to $3,820 per square meter for premium properties.
Entry-level homes in emerging neighborhoods start around $36,000 for complete properties. Single houses in the city center typically range from $70,000 to $90,000, while premium suburban properties can reach $1,200 to $3,820 per square meter depending on location and amenities.
Commercial spaces command different rates, with office space averaging around $15 per square meter in prime business districts. The past 12-24 months have seen consistent annual growth of 5-7% across most areas, with some premium locations experiencing even higher appreciation rates.
What short-term price trends can you expect in the next 6-12 months?
Dar es Salaam property prices are forecasted to rise 3-7% through 2025, with areas undergoing infrastructure development showing the strongest growth potential.
Neighborhoods like Kariakoo, Kigamboni, and Mikocheni are expected to outperform the market average due to new infrastructure projects and improved connectivity. The government's focus on urban development and transportation improvements is driving demand in previously underserved areas.
Prime coastal areas are likely to maintain steady appreciation of 4-6% annually, while emerging suburbs could see higher growth rates of 6-8% as infrastructure catches up to demand. Commercial property values in business districts are expected to rise 3-5% as office demand increases with economic growth.
The construction sector's expansion, forecast to grow from $10.7 billion in 2025, supports these price projections. Market fundamentals remain strong due to Tanzania's economic stability and growing middle class driving residential demand.
What are the medium-term trends for the next 2-3 years?
Medium-term projections show annual growth of 4-7% expected through 2027-2028, supported by solid economic fundamentals and policy stability.
The growing middle class and continued urbanization will drive sustained demand for residential properties across all price segments. Government initiatives for affordable housing in areas like Kinyerezi, Tegeta, and Tabata will support price stability while creating new investment opportunities.
Infrastructure development including the Bus Rapid Transit system and port expansion will enhance property values in connected neighborhoods. Mixed-use developments are expected to become more popular, combining residential, commercial, and retail spaces to meet changing lifestyle preferences.
Foreign investment policies and improved property registration systems will likely attract more international buyers, particularly in premium segments. Rental demand is expected to strengthen as the city's economy grows and attracts more professionals and expatriates.
It's something we develop in our Tanzania property pack.
What are the long-term prospects for the next 5-10 years?
Long-term prospects show steady appreciation potential with the construction sector forecast to expand to $17.4 billion by 2030.
Tanzania's economic growth trajectory and Dar es Salaam's position as East Africa's major commercial hub support sustained property market growth. The government's commitment to infrastructure development, including the new capital city project, will continue driving demand and property values.
Climate-conscious development and sustainable building practices are expected to become increasingly important, potentially creating premium segments for eco-friendly properties. The port expansion and industrial zone development will create new employment centers, driving residential demand in surrounding areas.
Population growth and continued rural-to-urban migration will maintain fundamental demand pressure on housing stock. International connectivity improvements through airport expansion and regional trade agreements will attract more foreign investment and expatriate residents.
Technology integration in property management and smart building features are likely to become standard expectations, particularly in premium developments. The rental market is expected to mature with more professional property management and diverse rental options including short-term accommodations.
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Which neighborhoods are currently undervalued or showing strong growth potential?
Several neighborhoods in Dar es Salaam offer exceptional growth potential due to ongoing infrastructure development and current undervaluation.
High Growth Potential Areas:
- Mbezi Beach - Beachfront properties remain significantly undervalued compared to similar coastal areas, with new road connections improving accessibility
- Kigamboni - The new bridge and planned developments make this one of the most promising investment areas with potential for 8-12% annual appreciation
- Bunju and Tabata - Government-backed affordable housing initiatives and improving infrastructure create strong fundamentals for first-time buyers and investors
- Tegeta and Kinyerezi - Benefiting from government affordable housing programs with excellent connectivity to the city center
- Sinza and Ubungo - Ubungo's position as a logistics hub and Sinza's mixed-use development potential offer strong medium-term growth prospects
Mikocheni represents excellent value for budget-conscious buyers seeking established infrastructure with room for appreciation. These areas typically offer entry points 30-50% below prime area prices while providing similar growth potential.
The key indicators for these neighborhoods include planned government infrastructure investments, proximity to employment centers, and current pricing below comparable areas with similar amenities.
How do prices differ between property types?
Property prices in Dar es Salaam vary significantly by type, with apartments and commercial spaces showing different pricing structures than single-family homes.
| Property Type | City Center Price | Suburban Price Range | Market Notes |
|---|---|---|---|
| Apartments | $1,200/sqm | $625-1,500/sqm | High demand for modern units with amenities |
| Single Houses | $70,000-90,000 | $1,200-3,820/sqm | Larger lots, family-focused, premium locations |
| Townhouses | Similar to apartments | 10-15% premium over apartments | Growing popularity, especially in suburbs |
| Commercial Office | $15/sqm rent | Varies by location | Premium rates in Upanga, Kariakoo |
| Retail Spaces | Premium locations | High demand areas | Strong demand in shopping districts |
| Industrial | Lower per sqm | Logistics zones | Growing with port expansion |
What rental yields can you expect in different parts of the city?
Rental yields in Dar es Salaam range from 4-9% annually depending on location and property type, with prime areas offering the most attractive returns.
Prime areas including Masaki, Upanga, and Oyster Bay typically deliver 6-9% rental yields due to high demand from expatriates, business professionals, and diplomatic staff. These areas command premium rents due to their proximity to international schools, embassies, and major business districts.
Suburban areas like Mbezi Beach, Kigamboni, and Mikocheni offer 5-7% yields with lower entry costs and strong growth potential. The short-term rental market shows promising returns, with Airbnb properties achieving approximately 48% occupancy rates and monthly revenues averaging $693.
Emerging neighborhoods including Bunju, Tabata, and Sinza currently offer 4-6% yields but present opportunities for yield growth as infrastructure improves and demand increases. Commercial properties in prime business districts can achieve 8-12% yields for well-located office and retail spaces.
Rental demand peaks seasonally, with July showing the highest occupancy rates for short-term rentals. Vacancy rates remain low in established prime areas but are moderately higher in developing suburbs.
How strong is rental demand, and is it rising or declining?
Rental demand in Dar es Salaam is rising steadily, driven by population growth, urban migration, and increasing numbers of expatriate professionals.
The city's growing economy and position as East Africa's commercial hub continues to attract both local and international workers who prefer renting over immediate property purchase. The expanding middle class and young professional demographic create consistent demand for quality rental properties across various price segments.
Short-term rental demand shows strong growth with the tourism sector recovery and business travel increases. Airbnb and similar platforms report improving occupancy rates, particularly in areas with good amenities and connectivity to business districts or tourist attractions.
Corporate housing demand remains robust as international companies establish regional offices in Dar es Salaam. This segment typically seeks furnished apartments in prime areas with reliable utilities and security, willing to pay premium rates for quality accommodations.
The trend toward urbanization and delayed homeownership among younger demographics supports long-term rental demand growth. Infrastructure improvements in suburban areas are expanding the rental market beyond traditional prime zones.
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 transaction costs and fees for buying property?
Transaction costs in Dar es Salaam typically range from 5-10% of the property value, with several mandatory and optional fees involved in the purchase process.
| Cost Type | Rate | Paid By | Description |
|---|---|---|---|
| Stamp Duty | 1% | Buyer | Government tax on property transfer |
| Registration Fee | 0.25% | Buyer | Official property registration |
| Notary Fee | 1-3% | Buyer | Legal document certification |
| Legal Fees | 1-2% | Buyer | Due diligence and legal representation |
| Agent Commission | 5-10% | Buyer/Seller | Real estate agent services |
| Property Valuation | 0.1% | Seller | Professional property assessment |
| Foreign Buyer Fees | Up to 2% | Buyer | Additional documentation and processing |
How easy is it to resell property and what's the average time on market?
Property resale in Dar es Salaam typically takes 30-90 days on average, with market liquidity improving due to government system modernizations.
Prime areas including Masaki, Upanga, and city center locations generally sell faster, often within 30-60 days, due to higher demand and established buyer networks. These properties benefit from better infrastructure, amenities, and strong rental potential that attracts both local and international buyers.
Suburban properties in developing areas like Mbezi Beach, Kigamboni, and Mikocheni may take 60-90 days on average, though well-priced properties in these growth areas can move more quickly. The key factors affecting sale speed include pricing, property condition, location accessibility, and available financing options.
Luxury properties exceeding $200,000 typically require longer marketing periods of 90-120 days due to the smaller buyer pool, but these often attract serious, qualified buyers. Commercial properties follow similar timelines but may require specialized marketing approaches.
Market liquidity continues improving with better access to title registration, reduced government approval times, and increasing investor confidence. New government digital systems have streamlined the property transfer process, reducing bureaucratic delays that previously extended transaction times.
Which areas offer the best value for money if you want to live there?
For residential living, Mikocheni, Kigamboni, Mbezi Beach, and Upanga offer the best combination of value, infrastructure, and quality of life in Dar es Salaam.
Mikocheni provides excellent value with established infrastructure including reliable utilities, proximity to schools and healthcare facilities, and good road connections to business districts. The area offers modern apartments and houses at prices 20-30% below prime coastal areas while maintaining good security and amenities.
Kigamboni has emerged as a top choice due to the new bridge connection, beachfront lifestyle, and significantly lower costs than Masaki or Oyster Bay. The area is experiencing rapid development with new shopping centers, restaurants, and residential complexes while maintaining a more relaxed coastal atmosphere.
Mbezi Beach combines beachfront living with reasonable pricing and improving infrastructure. New road developments have reduced commute times to the city center, making it attractive for professionals seeking lifestyle benefits without premium area costs.
Upanga offers urban convenience with proximity to business districts, established amenities, and diverse housing options from apartments to single-family homes. The area provides good walkability, access to services, and cultural attractions while remaining more affordable than exclusive neighborhoods.
These areas typically offer 5-7% rental yields if you decide to rent out part or all of your property, providing additional income potential alongside lifestyle benefits.
What's the most strategic investment positioning right now?
The most strategic investment approach in Dar es Salaam focuses on emerging neighborhoods with strong infrastructure development plans and entry-level to mid-range property types.
Optimal Investment Locations:
- Kigamboni - Beachfront properties offer the highest growth potential with government development plans and tourism infrastructure improvements
- Mbezi Beach - Undervalued coastal properties with significant upside as infrastructure improves
- Bunju, Tabata, and Tegeta - Government-backed affordable housing areas with strong rental demand from growing middle class
- Upanga and Kariakoo - Mixed-use development opportunities in established areas with commercial potential
- Sinza and Kinyerezi - Emerging residential areas benefiting from urban expansion and improved connectivity
Budget range strategies include entry-level investments starting around $36,000 in emerging areas for maximum appreciation potential, mid-range investments of $80,000-150,000 in developing suburbs for balanced growth and yield, and premium investments above $200,000 in established areas for steady returns and lower risk.
Modern apartments and mixed-use commercial properties show the best medium-term appreciation potential due to changing lifestyle preferences and business growth. Properties with parking, security, and modern amenities command premium rents and faster resale.
The optimal strategy combines capital appreciation in emerging areas with immediate yield generation, targeting properties that can serve both investment and potential personal use as the market develops.
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.
Dar es Salaam's property market in September 2025 presents compelling opportunities for both residential buyers and investors, with steady growth fundamentals and improving infrastructure creating favorable conditions.
The combination of affordable entry points in emerging neighborhoods, strong rental yields in established areas, and government support for urban development makes this an opportune time to enter the market.
Sources
- Tanzania Price Forecasts - The AfricanVestor
- Tanzania Real Estate Market Analysis
- Dar es Salaam Property Market Report
- Dar es Salaam Rent Prices 2025 - Coldwell Banker
- Top Growing Neighborhoods Dar es Salaam - Afrocaya
- Tanzania Rental Yields - Global Property Guide
- House Prices Tanzania - The AfricanVestor
- Tanzania Real Estate Growth 2030 - AHK