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Tanzania's property market is on fire, with prices jumping 86.65% over the past five years.
As we reach mid-2025, Dar es Salaam leads the charge with apartment prices hitting $3,820 per square meter, while emerging hotspots like Zanzibar are seeing 8-10% annual growth. The combination of robust economic expansion, massive infrastructure investments, and foreign investment reforms has created a perfect storm for property appreciation.
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 residential property prices are rising rapidly, with Dar es Salaam experiencing 5-7% annual growth and the national market up 86.65% over five years.
Government infrastructure spending of $13.5 billion, falling mortgage rates from 22% to 15%, and a 63% surge in foreign investment projects are fueling sustained price appreciation across all property types.
| Key Metric | Current Value | Trend |
|---|---|---|
| Average price per m² (Dar es Salaam) | $3,820 | ↑ 5-7% annually |
| 5-year price change (real terms) | +86.65% | Strong appreciation |
| Mortgage interest rates | 15% | ↓ Down from 22% |
| GDP growth (2025 forecast) | 6% | ↑ Accelerating |
| Foreign investment growth | +63% projects | ↑ Surging |
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.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the current average property prices per square meter in Tanzania?
Property prices in Tanzania vary dramatically depending on location, with Dar es Salaam commanding the highest rates.
As of June 2025, the national average for residential properties sits at approximately $1,200 per square meter. However, in Dar es Salaam's prime areas, you're looking at prices reaching $3,820 per square meter. City center apartments in Dar es Salaam average about 751,237 TSh (~$300) per square meter, while suburban apartments command higher prices at 1,564,132 TSh (~$625) per square meter.
For those considering purchasing a newly built house, the median price ranges between $70,000 and $90,000 nationwide. In Zanzibar, which has become increasingly popular with both tourists and investors, prices are climbing rapidly due to an 8-10% annual growth rate.
The Southern Highlands regions, including Njombe, Iringa, Rukwa, and Mbeya, are experiencing notable price increases due to infrastructure investment and increased demand. Meanwhile, Mwanza, particularly the Ilemela District, is emerging as a hotspot with rising property values driven by proximity to mining operations and Lake Victoria.
These price variations reflect Tanzania's diverse real estate landscape, where location remains the primary driver of value.
How much have property prices increased in Tanzania over the past year?
Tanzania's property market has shown remarkable growth over the past year, with different regions experiencing varying levels of appreciation.
In 2024, residential property prices in Dar es Salaam rose by 5-7%, outpacing many other African cities. This growth stems from robust economic expansion, with GDP growing 5.6% in 2024 and projected to reach 6% in 2025. The combination of urban migration and increased foreign investment has created sustained upward pressure on prices.
Zanzibar has emerged as the star performer, recording 8-10% annual growth in real estate values. The island's tourism boom, infrastructure improvements, and favorable investment policies have attracted both local and international buyers. Meanwhile, Mwanza and the Southern Highlands regions have also seen significant appreciation, though exact percentages vary by specific location.
The mortgage market has played a crucial role in this growth, with interest rates dropping from 22% to 15%, making property purchases more accessible to middle-class Tanzanians. This improved affordability has expanded the buyer pool considerably.
It's something we explore in detail in our Tanzania property pack.
Which areas in Tanzania are seeing the biggest property price increases?
Several Tanzanian cities and neighborhoods are experiencing exceptional property price growth as we reach mid-2025.
| Location | Annual Growth Rate | Key Growth Drivers |
|---|---|---|
| Zanzibar | 8-10% | Tourism boom, infrastructure upgrades, favorable investment policies |
| Dar es Salaam - Masaki | 7-9% | Prime location, luxury developments, expatriate demand |
| Dar es Salaam - Oyster Bay | 6-8% | Embassy district, high-end residential area, limited supply |
| Mwanza (Ilemela District) | 6-7% | Mining proximity, Lake Victoria access, government projects |
| Dar es Salaam - Mbezi Beach | 5-7% | Beach proximity, new infrastructure, middle-class growth |
| Southern Highlands | 5-6% | Infrastructure investment, agricultural boom, urban migration |
| Dar es Salaam - Kigamboni | 5-6% | Bridge connectivity, new developments, affordable options |
What property types are experiencing the fastest price growth in Tanzania?
Different property types in Tanzania are appreciating at varying rates, with some segments significantly outperforming others.
Luxury apartments and high-rise developments are leading the charge, particularly in Dar es Salaam and Zanzibar. Land scarcity in prime urban areas has pushed developers vertically, creating premium properties that command top prices. These developments often include amenities like gyms, swimming pools, and 24/7 security, appealing to affluent locals and expatriates.
Mixed-use developments combining residential, commercial, and retail spaces represent another rapidly appreciating segment. These properties offer convenience and investment diversification, making them particularly attractive to investors. The trend reflects global urbanization patterns where live-work-play environments are increasingly valued.
Surprisingly, affordable housing is also seeing strong price growth due to massive demand and government incentives. The government's push to address the housing deficit has created opportunities in urban peripheries where land is still available. Properties in this segment, typically priced between $30,000-$50,000, are appreciating quickly as mortgage accessibility improves.
While detached houses remain popular, especially among families, their price growth has been more moderate compared to apartments and mixed-use complexes. Urban land constraints and the preference for gated communities with shared amenities have shifted demand toward more efficient property types.
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What do the property price forecasts say for Tanzania in 2026?
Property market analysts are bullish on Tanzania's real estate prospects for 2026, with most forecasts pointing to continued growth.
Based on current trends and economic projections, residential property prices in major urban centers are expected to rise by 4-6% annually through 2026. The residential real estate sector maintains a compound annual growth rate (CAGR) of 4.74% from 2024-2028, suggesting stable and predictable appreciation. Dar es Salaam's property market specifically is forecast to continue its 5-7% annual growth trajectory.
Several factors support these optimistic projections. Tanzania's GDP is expected to maintain 6% growth through 2026, driven by infrastructure development, mining, and tourism. The urban population is projected to grow from 25 million in 2023 to 45 million by 2030, creating sustained housing demand. Additionally, the government's $13.5 billion investment in water infrastructure and $1.2 billion in the Standard Gauge Railway will enhance property values in connected areas.
However, analysts also point to potential headwinds. Global economic uncertainties, inflation risks, and any delays in infrastructure rollout could moderate growth. The property market's performance will largely depend on continued economic stability and the successful implementation of government development projects.
For investors, the consensus suggests that 2026 will offer continued opportunities, particularly in affordable housing and mixed-use developments near new infrastructure corridors.
How have Tanzania's property prices changed over the past 5 years?
Tanzania's property market has experienced one of the most dramatic transformations in East Africa over the past five years.
The inflation-adjusted residential house price index shows an astounding 86.65% increase from 2020 to 2025. This means that a property worth $100,000 in 2020 would now be valued at approximately $186,650 in real terms. This growth significantly outpaces inflation and represents genuine wealth creation for property owners.
The journey hasn't been entirely smooth. The market experienced a brief slowdown during the global pandemic in 2020-2021, but quickly rebounded as Tanzania's economy proved resilient. From 2022 onwards, the acceleration has been remarkable, driven by several converging factors including improved mortgage accessibility, foreign investment reforms, and massive infrastructure spending.
Breaking down the five-year period, the strongest growth occurred in 2023-2025, coinciding with the drop in mortgage rates from 22% to 15% and the implementation of new investment regulations. Urban centers led this growth, with Dar es Salaam, Zanzibar, and emerging cities like Mwanza seeing the highest appreciation rates.
This exceptional performance has established Tanzania as one of Africa's most dynamic property markets, attracting attention from both regional and international investors seeking exposure to frontier market growth.
How do Tanzania's current property prices compare to neighboring countries?
Tanzania's property market occupies an interesting position within the East African real estate landscape.
When comparing average prices per square meter in capital cities, Dar es Salaam's range of $1,200-$3,820 places it above Kampala, Uganda ($500-$1,200) and Kigali, Rwanda ($1,000-$2,500), but slightly below prime areas in Nairobi, Kenya ($1,500-$4,000). This positioning reflects Tanzania's growing economic strength while still offering relative value compared to Kenya's more mature market.
What truly sets Tanzania apart is its recent performance. The 86.65% five-year real price increase significantly outpaces estimated growth in Kenya (40-60%), Uganda (30-50%), and is comparable to Rwanda (60-80%). This suggests Tanzania is catching up to regional standards while still offering growth potential.
Mortgage accessibility has become a key differentiator. Tanzania's current 15% interest rate now matches Kenya's 13-15% range and is substantially better than Uganda's 22%. This improvement makes Tanzania more competitive for local buyers and explains part of the recent price surge.
It's worth noting that we analyze these regional comparisons extensively in our Tanzania property pack.
Urban growth rates tell another story, with Tanzania's 4.9% urbanization outpacing Kenya's 4.2% and Uganda's 4.5%, though slightly below Rwanda's 5.1%. This rapid urbanization continues to fuel demand across all property segments.
We made this infographic to show you how property prices in Tanzania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What impact is Tanzania's economic growth having on property prices?
Tanzania's robust economic performance is directly translating into higher property values across the country.
With GDP growth of 5.6% in 2024 and projections of 6% for 2025, Tanzania ranks among Africa's fastest-growing economies. This economic expansion creates jobs, increases household incomes, and expands the pool of potential property buyers. The multiplier effect is particularly visible in urban centers where formal employment is concentrated.
Despite national inflation remaining moderate at 3.1%, urban centers like Dar es Salaam experienced higher inflation at 6.5%, directly impacting housing costs. This urban-rural inflation gap reflects the concentration of economic activity and population growth in cities, creating localized price pressures that push property values upward.
The services sector, contributing significantly to GDP growth, has created a new middle class with purchasing power for property. Banking sector expansion has improved credit availability, while the technology sector's growth has attracted young professionals seeking modern housing options. These economic dynamics create sustained demand across various property segments.
Foreign direct investment has surged, with a 63% increase in registered investment projects following regulatory reforms. This influx of capital flows directly into real estate development and creates employment, further stimulating housing demand. The construction sector itself has become a significant GDP contributor, creating a self-reinforcing cycle of growth.
How is government infrastructure spending affecting property values?
Tanzania's massive infrastructure investments are creating property value hotspots across the country.
1. **Water Infrastructure ($13.5 billion)**: The Tanzania Water Infrastructure Program (TanWIP) is improving urban livability and directly increasing property values in previously underserved areas2. **Standard Gauge Railway ($1.2 billion)**: Properties along the SGR corridor are seeing accelerated appreciation as connectivity improves3. **Dar es Salaam Maritime and Domestic Port (DMDP)**: Port expansion is boosting commercial and residential property values in surrounding areas4. **Urban road networks**: New and upgraded roads are opening previously inaccessible areas for development5. **Power generation projects**: Improved electricity reliability is making suburban and peripheral areas more attractive for developmentThe multiplier effect of infrastructure spending extends beyond direct improvements. Construction projects create employment, attracting workers who need housing. Improved infrastructure reduces commute times, making peripheral areas viable alternatives to expensive city centers. This spatial expansion of livable areas helps moderate price pressures while creating new investment opportunities.
Properties near major infrastructure projects typically see 10-20% price premiums compared to similar properties in unconnected areas. Smart investors are positioning themselves along planned infrastructure corridors, anticipating future appreciation as projects complete.
What role are foreign investors playing in Tanzania's property price trends?
Foreign investment has become a major catalyst for Tanzania's property market boom.
The implementation of comprehensive legal and regulatory reforms has transformed Tanzania's investment landscape. The new Investment Act streamlined procedures, leading to a remarkable 63% increase in registered investment projects. This surge in foreign interest has created significant upward pressure on property prices, particularly in premium urban locations and mixed-use developments.
Foreign investors are particularly active in several segments. In Zanzibar, international buyers seeking vacation homes and rental investments have driven the 8-10% annual price growth. In Dar es Salaam, multinational corporations establishing regional headquarters create demand for high-end residential properties for expatriate staff. Chinese investors have been particularly active in large-scale residential developments, bringing capital and construction expertise.
The government's reforms have made property ownership more accessible to foreigners through investment vehicles and long-term leases. This opening of the market has attracted diaspora Tanzanians and regional African investors seeking to diversify their portfolios. The competition between local and foreign buyers has intensified, particularly for well-located properties with clear titles.
However, foreign investment isn't just inflating prices—it's also increasing supply. International developers are introducing new construction techniques and property concepts, raising overall market standards. This professionalization of the real estate sector benefits all participants through improved transparency and quality.
Is the demand for property in Tanzania primarily from locals or foreigners?
Tanzania's property market is experiencing strong demand from both local and foreign buyers, creating a dynamic marketplace.
| Buyer Category | Primary Segments | Market Impact |
|---|---|---|
| Local Middle Class | Affordable housing ($30k-$70k), Suburban apartments | Driving volume, benefiting from lower mortgage rates |
| Local High Net Worth | Luxury properties, Mixed-use developments | Competing with foreigners for premium properties |
| Diaspora Tanzanians | Investment properties, Family homes | Bringing foreign currency, driving mid-range segment |
| Regional Africans | Commercial properties, Rental investments | Seeking diversification from home markets |
| International Investors | Large developments, Tourism properties | Bringing capital and expertise, raising standards |
| Expatriates | Rental properties, Gated communities | Creating premium rental market in urban centers |
Local demand remains the backbone of the market, driven by rapid urbanization, economic growth, and improved mortgage accessibility. The drop in interest rates from 22% to 15% has particularly energized local buyers, who now find property ownership more attainable. Young professionals and growing families form the core of this demand.
We provide detailed analysis of buyer demographics 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.
Yes a lot - Tanzania's property prices are experiencing robust growth across all major markets and property types.
The data speaks clearly: with a 86.65% increase over five years, 5-7% annual growth in Dar es Salaam, and 8-10% appreciation in Zanzibar, Tanzania's real estate market is one of Africa's strongest performers. The combination of solid economic fundamentals, massive infrastructure investment, and improved financing options creates a compelling case for continued price appreciation through 2026 and beyond.
Sources
- The African Investor - Tanzania Real Estate Market Analysis
- Global Property Guide - Tanzania 5-Year Price Changes
- Bank of Tanzania - Economic Review 2025
- Statista - Tanzania Real Estate Market Outlook
- RE/MAX Tanzania - Market Insights
- Troloppe - Tanzania Residential Market Deep Dive
- Tanzania Investment Centre - Investment Bulletin 2024
- African Development Bank - Tanzania Economic Outlook