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The average house in Dar es Salaam costs between $70,000 and $90,000 as of September 2025. You'll need to budget for transaction fees totaling 9-14% of the property value, plus a down payment of 10-30% depending on your residency status. Foreign buyers face stricter mortgage requirements with interest rates of 13-16% and shorter loan terms of 10-20 years compared to locals who can secure 15-25 year mortgages.
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.
Buying a house in Dar es Salaam requires a total upfront budget of $90,000-$110,000 for an average $80,000 home, including down payment and fees.
Price per square meter averages $1,200 city-wide, ranging from $600 in budget suburbs to $1,800+ in premium neighborhoods like Masaki.
| Cost Category | Amount (USD) | Details |
|---|---|---|
| Average House Price | $70,000 - $90,000 | Modern homes, city-wide average |
| Down Payment | 10-30% of price | Locals: 10-20%, Foreigners: 20-30% |
| Transaction Fees | 9-14% of price | Taxes, registration, legal, agent fees |
| Mortgage Interest | 13-16% annually | Current rates as of September 2025 |
| Monthly Utilities | $50 - $100 | Electricity, water, waste collection |
| Annual Maintenance | $500 - $1,000 | Routine upkeep for modest homes |
| Legal Documentation | $200 - $1,000 | Varies by deal complexity |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
How much does the average house in Dar es Salaam cost right now?
The average house in Dar es Salaam costs between $70,000 and $90,000 as of September 2025.
Modern homes in decent neighborhoods typically fall within this price range, representing the middle market segment of Dar es Salaam's residential property market. Entry-level homes in budget suburbs like Tabata, Bunju, and Kinyerezi start from around $36,000, while premium properties in upscale areas can reach $150,000 to $200,000 or more.
The Dar es Salaam residential market has shown steady growth over recent years, with foreign investment and urban development driving demand. Local banks report increased mortgage applications, though homeownership remains challenging for many due to high interest rates and strict lending requirements.
It's something we develop in our Tanzania property pack.
What is the price per square meter for residential properties in Dar es Salaam?
The average price per square meter for residential properties in Dar es Salaam is $1,200 as of September 2025.
Prices vary significantly by location, ranging from $600 per square meter in budget suburbs to over $1,800 per square meter in premium neighborhoods. Budget areas like Tabata and Bunju offer the lowest per-square-meter rates at $600-$900, making them attractive for first-time buyers and investors seeking affordable entry points.
Mid-range neighborhoods like Mikocheni and Upanga command $800-$1,300 per square meter, while luxury areas such as Masaki and Oyster Bay reach $1,400-$1,800 per square meter. The Msasani Peninsula, popular with expatriates and affluent locals, typically sees prices between $1,200-$1,500 per square meter.
These per-square-meter rates reflect the quality of infrastructure, proximity to amenities, and security levels in each area. Properties near the Indian Ocean coastline or with ocean views command premium prices above the average rates.
What are the different neighborhoods in Dar es Salaam and how do their house prices compare?
Dar es Salaam's neighborhoods show significant price variations based on location, infrastructure, and amenities.
| Neighborhood | Price per sqm (USD) | House Price Range (USD) |
|---|---|---|
| Masaki/Oyster Bay | $1,400 - $1,800 | $150,000 - $200,000+ |
| Msasani Peninsula | $1,200 - $1,500 | $75,000 - $150,000 |
| Upanga | $1,000 - $1,300 | $60,000 - $120,000 |
| Mikocheni | $800 - $1,200 | $50,000 - $100,000 |
| Kigamboni | $600 - $1,000 | $36,000 - $80,000 |
| Tabata/Bunju | $600 - $900 | $36,000 - $85,000 |
What is the price range for buying a house in the city center versus the outskirts?
City center and premium areas command significantly higher prices than suburban locations in Dar es Salaam.
Properties in the city center and premium neighborhoods like Masaki, Oyster Bay, and Msasani Peninsula range from $70,000 to over $200,000, with per-square-meter prices between $1,200 and $1,800. These areas offer superior infrastructure, proximity to business districts, shopping centers, and international schools.
Suburban and outskirt areas including Tabata, Bunju, Kinyerezi, and Kigamboni offer more affordable options ranging from $36,000 to $85,000, with per-square-meter prices between $600 and $1,000. These locations provide better value for money but may require longer commutes to city center employment and amenities.
The price differential reflects infrastructure quality, security levels, and accessibility. City center properties benefit from established utilities, paved roads, and reliable services, while outskirt areas may have developing infrastructure and intermittent services.
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What are the typical transaction fees involved in buying a house in Dar es Salaam?
Transaction fees for buying a house in Dar es Salaam total between 9% and 14% of the property purchase price.
Stamp duty ranges from 1% to 2% of the purchase price, while registration fees add another 0.25% to 1%. Notary and legal fees typically cost 1% to 3% of the property value, covering document preparation, title verification, and legal representation throughout the transaction process.
Real estate agent commissions range from 3% to 10% of the purchase price, depending on the property value and services provided. Additional fees include survey costs, land rent clearance, and various documentation requirements that can add $200 to $1,000 to the total transaction cost.
Foreign buyers may face additional costs related to Tanzania Investment Centre (TIC) approval and compliance requirements. All buyers should budget for potential hidden costs such as delayed registry penalties or additional tax clearance fees that may arise during the transaction process.
What are the costs of property maintenance and utilities in Dar es Salaam?
Monthly utilities for an average home in Dar es Salaam cost between $50 and $100, while annual maintenance typically runs $500 to $1,000.
Electricity, water, and waste collection services form the bulk of monthly utility expenses. Internet connectivity adds approximately $20 to $40 per month for standard broadband packages. These costs can vary based on property size, usage patterns, and service provider choice.
Annual maintenance costs include routine cleaning, minor repairs, security services, and general upkeep for modest homes. Properties in gated communities or with shared amenities may have additional monthly service charges for common area maintenance and security.
Property management services, if you plan to rent out the property, typically charge 8% to 12% of annual rental income. Owners should also budget for periodic major maintenance such as roof repairs, painting, or appliance replacement every few years.
How much do you need for a down payment when purchasing a home in Dar es Salaam?
Down payment requirements in Dar es Salaam vary significantly based on your residency status and the lending institution.
Local Tanzanian citizens typically need 10% to 20% of the property value as a down payment when securing a mortgage from local banks. Foreign buyers face stricter requirements, with most lenders requiring 20% to 30% of the purchase price as a down payment.
For a typical $80,000 home, locals would need $8,000 to $16,000 as a down payment, while foreigners would need $16,000 to $24,000. Some premium lenders may require even higher down payments from foreign buyers, particularly for properties in certain neighborhoods or price ranges.
It's something we develop in our Tanzania property pack.
Banks also consider additional factors such as employment history, income stability, and existing debt obligations when determining final down payment requirements and loan approval.
What is the mortgage interest rate for homebuyers in Dar es Salaam?
Mortgage interest rates in Dar es Salaam currently range from 13% to 16% annually as of September 2025.
Local banks offer varying rates based on the borrower's creditworthiness, employment status, and relationship with the institution. Tanzanian citizens generally qualify for more favorable rates and longer repayment terms compared to foreign buyers.
Loan terms for local citizens typically extend 15 to 25 years, while foreign buyers often face shorter terms of 10 to 20 years with limited bank options. The shorter terms for foreigners result in higher monthly payments despite similar interest rates.
Fixed-rate mortgages are less common than variable-rate loans, which means monthly payments may fluctuate based on Bank of Tanzania policy changes. Borrowers should factor potential rate increases into their long-term budget planning when considering mortgage affordability.
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 much money do you need to budget for legal fees and paperwork?
Legal fees and paperwork costs for property purchases in Dar es Salaam typically range from $200 to $1,000 depending on transaction complexity.
Basic legal services including title deed verification, sale agreement preparation, and standard notarization usually cost around $200 to $500 for straightforward transactions. More complex deals involving disputed titles, multiple parties, or extensive negotiations can reach $1,000 or more in legal fees.
Required paperwork includes title deed verification, land survey confirmation, sale agreement notarization, seller's consent documentation, and local authority clearance certificates. Each document may incur separate processing fees ranging from $10 to $100.
Foreign buyers should budget for additional legal costs related to Tanzania Investment Centre approval, compliance documentation, and potentially more extensive due diligence requirements. Working with experienced local legal counsel is essential for navigating Tanzania's property law requirements effectively.
What is the process for obtaining financing from a bank in Dar es Salaam?
Obtaining mortgage financing in Dar es Salaam requires careful preparation and documentation, with the process typically taking 4 to 8 weeks.
- Initial application submission with identification documents, proof of income, employment history, and preliminary sale agreement
- Bank evaluation of creditworthiness, debt-to-income ratios, and employment stability through verification processes
- Property valuation and title verification by bank-approved assessors to confirm the property's value and legal status
- Final loan approval contingent on meeting all bank requirements and completing documentation
- Loan disbursement after signing final agreements and completing registration formalities
Foreign investors must obtain Tanzania Investment Centre (TIC) approval before proceeding with bank financing applications. Required documents include sale agreement, proof of payment capacity, title and land certificates, local government tax clearance, and survey certificates.
Physical presence in Tanzania is often required for document signing and verification processes. Banks may also require additional guarantees or collateral from foreign borrowers to secure the mortgage loan.
What are the closing costs for a property purchase in Dar es Salaam?
Total closing costs for property purchases in Dar es Salaam range from 9% to 14% of the transaction value.
These costs include all transaction fees, taxes, legal fees, and agent commissions discussed previously. For an $80,000 property, buyers should budget $7,200 to $11,200 in closing costs beyond the down payment and principal amount.
Hidden costs may include land rent clearance fees, tax clearance requirements, and delayed registry penalties if documentation processing extends beyond expected timeframes. Survey fees, title search costs, and notarization expenses add to the total closing cost burden.
It's something we develop in our Tanzania property pack.
Foreign buyers should budget an additional buffer for potential compliance costs and extended processing times that may incur penalty fees or additional administrative charges during the closing process.
How much is the property tax in Dar es Salaam and how often is it paid?
Property tax in Dar es Salaam is paid annually with amounts based on property value and collected by local council authorities.
Tax rates vary by property location and local council jurisdiction, typically calculated as a percentage of the property's assessed value. Rural and suburban areas generally have lower tax rates compared to city center and premium neighborhood properties.
Land rent is an additional annual requirement for leasehold properties, which represents the majority of land tenure in Tanzania. This annual payment is separate from property tax and must be kept current to maintain clear title and avoid penalties.
Property owners receive annual tax assessments from their local council and must settle payments by specified deadlines to avoid penalty charges. Failure to pay property taxes can result in liens against the property and potential legal complications during future sales.
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.
Buying a house in Dar es Salaam requires careful financial planning beyond the property price itself.
Total upfront costs including down payment, transaction fees, and closing costs can reach $90,000 to $110,000 for an average $80,000 home, making proper budgeting essential for successful property acquisition.
Sources
- BambooRoutes - Tanzania House Prices
- TheAfricanVestor - Dar es Salaam Property Market
- BambooRoutes - Average Property Prices Dar es Salaam
- TheAfricanVestor - Best Neighborhoods Dar es Salaam
- Global Property Guide - Tanzania Buying Guide
- TIC Global - Tanzania Interest Rates 2025
- TCB Bank - Mortgage Information
- Mrisho Consult - Land Ownership Costs
- Bank of Tanzania - Press Release
- Expatistan - Dar es Salaam Utilities Costs