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Thinking about buying a 3-bedroom apartment in Oyster Bay? It’s a great area in Dar es Salaam, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Masaki or Upanga where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Tanzania Property Pack.
Will property prices increase in Tanzania in 2025?
Yes, property prices in Tanzania are expected to rise in 2025, driven by a combination of economic growth and increasing urbanization.
Backed by our fresh, in-depth market analysis, we’re confident that Tanzania remains an attractive market for both domestic and international investors.
While there are challenges such as inflation and infrastructure development delays, the main drivers behind Tanzania’s property price growth are strong and persistent.
Urban areas, particularly Dar es Salaam, continue to experience high demand for housing, which is likely to keep prices on an upward trajectory. Additionally, Tanzania's strategic location and growing economy make it a focal point for investment in East Africa.
Signals pointing to a property price increase in Tanzania
Here are some factors suggesting prices could increase:
Tanzania's economy is projected to grow steadily, driven by sectors such as mining, agriculture, and tourism. Economic growth typically leads to increased demand for housing as more people move to urban areas for job opportunities.
Urbanization is on the rise, with more people moving to cities like Dar es Salaam and Dodoma. This urban migration increases the demand for housing, pushing property prices higher.
Government initiatives to improve infrastructure, such as roads and public transportation, are expected to enhance connectivity and accessibility, making certain areas more attractive for property investment.
Foreign investment in Tanzania is increasing, particularly in real estate and infrastructure projects. This influx of capital can drive up property prices as demand from international investors grows.
The Tanzanian government is implementing policies to encourage home ownership, such as providing affordable housing schemes and mortgage facilities, which can boost demand and subsequently increase property prices.
The development of new commercial and residential projects in key urban areas is expected to attract more buyers and investors, contributing to rising property values.
Tanzania's strategic location as a gateway to East Africa makes it an attractive destination for businesses and expatriates, further increasing demand for residential and commercial properties.
Signals pointing to a property price decrease in Tanzania
Here are some factors suggesting prices could fall:
Inflationary pressures could lead to higher costs of living, reducing disposable income and potentially decreasing the ability of individuals to purchase property.
Delays in infrastructure development projects could hinder accessibility and connectivity, making certain areas less attractive for property investment.
Political instability or changes in government policies could create uncertainty in the real estate market, potentially deterring investment and affecting property prices.
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If property prices go up in Tanzania, how much would they increase by?
If real estate prices in Tanzania were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Tanzania appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Dar es Salaam for 150,000,000 Tanzanian Shillings today, don't be surprised if it's priced between 154,500,000 and 160,500,000 Tanzanian Shillings this time next year.
To give you a better understanding, here is a table that shows 7 types of Tanzanian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (TZS) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| City Apartment (60 sqm / 646 sqft) | 150,000,000 | 154,500,000 | 157,500,000 | 160,500,000 |
| Modern Apartment (75 sqm / 807 sqft) | 200,000,000 | 206,000,000 | 210,000,000 | 214,000,000 |
| Luxury Villa (100 sqm / 1,076 sqft) | 500,000,000 | 515,000,000 | 525,000,000 | 535,000,000 |
| Studio (30 sqm / 323 sqft) | 75,000,000 | 77,250,000 | 78,750,000 | 80,250,000 |
| Loft (80 sqm / 861 sqft) | 250,000,000 | 257,500,000 | 262,500,000 | 267,500,000 |
| Townhouse (150 sqm / 1,615 sqft) | 700,000,000 | 721,000,000 | 735,000,000 | 749,000,000 |
| Investment Property (50 sqm / 538 sqft) | 100,000,000 | 103,000,000 | 105,000,000 | 107,000,000 |
Everything you need to know is included in our Property Pack for Tanzania
If real estate prices go up in Tanzania, which areas are likely to see the biggest increases?
Today, people who want to move to Tanzania are looking for a blend of natural beauty and modern amenities, which Masaki offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Oyster Bay has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Tanzanian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Masaki | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Oyster Bay | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Dar es Salaam. |
| Upanga | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Mikocheni | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Kigamboni | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Kariakoo | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Msasani | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Sinza | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Tegeta | Medium-High | Its proximity to Dar es Salaam, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Tabata | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Mbezi Beach | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Kivukoni | High | Upcoming restoration of historical sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Tanzania?
In 2025, Tanzania's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban centers like Dar es Salaam.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Arusha and Dodoma are seeing increased interest. Proximity to natural attractions and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In bustling cities like Dar es Salaam, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Tanzania's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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