Authored by the expert who managed and guided the team behind the Tanzania Property Pack
Everything you need to know before buying real estate is included in our Republic of the Congo Property Pack
Are you wondering what is happening with property prices in Tanzania right now?
This article gives you the full picture of current housing prices in Tanzania, recent trends, and what to expect in 2026 and beyond.
We constantly update this blog post with the latest data and official sources to keep you informed.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Tanzania.
Insights
- The average mortgage debt in Tanzania sits at TZS 119 million, which means typical financed homes cost around TZS 150 million when you factor in standard down payments.
- Tanzania's mortgage market grew by 11% year-on-year in 2025, signaling that more Tanzanians are accessing formal housing finance despite high interest rates.
- Prime neighborhoods like Masaki and Oyster Bay in Dar es Salaam command prices up to TZS 10 million per square meter, roughly 8 times the national average.
- Zanzibar's property market has outperformed mainland Tanzania with 8 to 10% annual growth, driven by tourism and international buyer interest.
- Tanzania's road network expanded by 32.6% since 2020, reaching 144,429 kilometers, which is opening up new areas for residential development.
- The Standard Gauge Railway now connects Dar es Salaam to Dodoma in just 3 hours instead of 9, transforming property values along the corridor.
- Peri-urban land prices around Dar es Salaam have grown 8 to 12% annually over the past decade, often outpacing established urban neighborhoods.
- Tanzania will need 26.8 million housing units by 2050 to serve its projected population of 118 million, creating a structural supply shortage.
- Foreign direct investment in Tanzania's real estate sector increased by 63% over the past five years, with UAE and Chinese investors leading the charge.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the current property price trends in Tanzania as of 2026?
What is the average house price in Tanzania as of 2026?
As of early 2026, the average price for a formal-market residential property in Tanzania is approximately TZS 150 million (around $58,500 USD or €53,500 EUR), based on mortgage data that shows the typical financed home value.
When looking at price per square meter, the national average for Tanzania's formal residential market sits at roughly TZS 1.3 million per square meter (about $500 USD or €460 EUR), though this varies dramatically by location.
For most buyers in Tanzania, the realistic price range that covers about 80% of property purchases falls between TZS 90 million and TZS 280 million ($35,000 to $109,000 USD or €32,000 to €100,000 EUR), with prime locations in Dar es Salaam and Zanzibar commanding significantly higher prices up to TZS 1.5 billion.
How much have property prices increased in Tanzania over the past 12 months?
Property prices across Tanzania increased by approximately 6 to 9% in nominal terms over the past 12 months, with our best estimate landing around 7.5% for the nationwide average.
This growth varied by property type and location, with prime zones in Dar es Salaam and Zanzibar seeing increases of 8 to 12%, while more price-sensitive markets outside major cities recorded steadier gains of 4 to 7%.
The most significant factor driving this price movement in Tanzania was the combination of steady urbanization and mortgage market expansion, as residential mortgages grew by 11% year-on-year while inflation remained contained around 3.4%.
Which neighborhoods have the fastest rising property prices in Tanzania as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in Tanzania are Kigamboni in Dar es Salaam (benefiting from new bridge access and development momentum), Paje on Zanzibar's east coast (driven by tourism and second-home demand), and Njiro in Arusha (attracting families and expats with steady services).
Kigamboni has recorded estimated annual price growth of 10 to 14%, Paje in Zanzibar has seen appreciation of 10 to 15%, and Njiro in Arusha has experienced growth of 8 to 11% over the past year.
The main demand driver behind these fast-growing Tanzania neighborhoods is improved infrastructure access, whether through new roads and bridges in Kigamboni, tourism expansion in Paje, or reliable services and security in Njiro that attract professional families.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Tanzania.
We have made this infographic to give you a quick and clear snapshot of the property market in Tanzania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Tanzania as of 2026?
As of early 2026, the ranking of property types by value appreciation in Tanzania places well-managed apartments and condos at the top, followed by townhouses in gated compounds, then villas in prime locations, with older standalone houses appreciating more slowly.
The top-performing property type in Tanzania, apartments and condos in quality buildings, is appreciating at approximately 8 to 12% annually in Dar es Salaam and Zanzibar's best locations.
The main reason apartments and condos are outperforming in Tanzania is that buyers pay a premium for security, reliable utilities, parking, and lower maintenance hassle, which matter greatly in a market where infrastructure can be inconsistent.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
What is driving property prices up or down in Tanzania as of 2026?
As of early 2026, the top three factors driving property prices in Tanzania are rapid urbanization and household formation in major metros, mortgage market deepening from a low base, and ongoing infrastructure investments like the Standard Gauge Railway.
The single factor with the strongest upward pressure on Tanzania property prices is urbanization, as the country's urban population is projected to nearly double over the next decade, creating sustained housing demand that outpaces formal supply.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Tanzania here.
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What is the property price forecast for Tanzania in 2026?
How much are property prices expected to increase in Tanzania in 2026?
As of early 2026, residential property prices in Tanzania are expected to increase by 5 to 8% over the year, with our central estimate around 6.5% for the national average.
The range of forecasts from different analysts spans from a conservative 4% (assuming tighter credit conditions) to an optimistic 11% in prime zones where demand from international buyers and diaspora remains strong.
The main assumption underlying most Tanzania property price forecasts is that the economy maintains its projected 6% GDP growth while inflation stays contained around 3.5%, supporting buyer confidence without triggering aggressive rate hikes.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Tanzania.
Which neighborhoods will see the highest price growth in Tanzania in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Tanzania are Kigamboni and Mbezi Beach in Dar es Salaam, Paje and Fumba in Zanzibar, and Njiro in Arusha.
These top Tanzania neighborhoods are projected to see price growth of 9 to 14% in 2026, outpacing the national average by 3 to 5 percentage points.
The primary catalyst driving expected growth in these neighborhoods is the combination of improved access roads, expanding services, and proximity to employment or tourism nodes that attract a broadening pool of buyers.
One emerging neighborhood in Tanzania that could surprise with higher-than-expected growth is Bunju in northern Dar es Salaam, where new developments and SGR station proximity are starting to attract attention from middle-class buyers.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Tanzania.
What property types will appreciate the most in Tanzania in 2026?
As of early 2026, apartments and condos in well-managed buildings are expected to appreciate the most in Tanzania, particularly in Dar es Salaam and Zanzibar's established areas.
The projected appreciation for top-performing apartments in Tanzania is 8 to 12% in 2026, driven by their scarcity in quality developments and the premium buyers place on security and convenience.
The main demand trend driving appreciation for apartments in Tanzania is the growing middle class seeking turnkey properties with reliable services, as self-building becomes more expensive and time-consuming.
The property type expected to underperform in Tanzania in 2026 is older standalone houses far from main corridors, which often require significant renovation and appeal to a narrower buyer pool.
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 will interest rates affect property prices in Tanzania in 2026?
As of early 2026, high mortgage interest rates continue to act as a ceiling on Tanzania property prices, limiting how high values can rise before pushing buyers out of affordability.
The Bank of Tanzania's Central Bank Rate currently sits at 5.75% (recently lowered from 6.0%), while typical mortgage rates for borrowers range from 15 to 19%, down from previous highs of 22%.
A 1% change in mortgage interest rates in Tanzania typically affects buyer affordability by roughly 8 to 10% in terms of loan capacity, which translates to noticeable but not dramatic shifts in price momentum for the mainstream market.
You can also read our latest update about mortgage and interest rates in Tanzania.
What are the biggest risks for property prices in Tanzania in 2026?
As of early 2026, the three biggest risks for property prices in Tanzania are a potential increase in borrowing costs that would squeeze buyer affordability, currency depreciation that raises construction material costs, and administrative bottlenecks in title registration that slow transactions.
The risk with the highest probability of materializing in Tanzania is currency or import-cost shocks, given the country's reliance on imported building materials and the shilling's sensitivity to regional economic conditions.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Tanzania.
Is it a good time to buy a rental property in Tanzania in 2026?
As of early 2026, buying a rental property in Tanzania can be a good decision if you focus on locations with proven rental demand and come in with a meaningful down payment to offset high borrowing costs.
The strongest argument in favor of buying now is that Tanzania's structural housing shortage, combined with 6% GDP growth and rapid urbanization, means rental demand in major cities like Dar es Salaam and Zanzibar should remain robust for years.
The strongest argument for waiting is that mortgage rates of 15 to 19% make leveraged purchases expensive, so investors who need near-perfect occupancy to break even face real cash flow risk.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Tanzania.
You'll also find a dedicated document about this specific question in our pack about real estate in Tanzania.
Buying real estate in Tanzania can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Tanzania?
What is the 5-year property price forecast for Tanzania as of 2026?
As of early 2026, cumulative property price growth in Tanzania over the next 5 years is expected to reach 28 to 40% in nominal terms.
The range of 5-year forecasts spans from a conservative scenario of around 25% total growth (assuming tighter financing and slower economic momentum) to an optimistic scenario of 45% (if mortgage access expands and infrastructure projects accelerate).
This translates to a projected average annual appreciation rate of 5 to 7% per year for Tanzania property over the 2026 to 2031 period.
The key assumption most forecasters rely on for their 5-year Tanzania property predictions is that urbanization continues at its current pace, with the urban population growing toward 45 million by 2030 and creating sustained housing demand.
Which areas in Tanzania will have the best price growth over the next 5 years?
The three areas in Tanzania expected to have the best price growth over the next 5 years are Dar es Salaam's northern expansion corridor (Mbezi Beach to Tegeta), Zanzibar's east coast (Paje, Jambiani, Kiwengwa), and Kigamboni in southern Dar es Salaam.
These top-performing areas in Tanzania are projected to see 5-year cumulative price growth of 40 to 55%, outpacing the national average by 10 to 15 percentage points.
This 5-year outlook is consistent with our shorter-term forecast but shows even stronger compounding in infrastructure-led corridors, as the SGR network and road improvements fully mature and attract more development.
The currently undervalued area in Tanzania with the best potential for outperformance over 5 years is Tegeta in Dar es Salaam, where land prices remain relatively accessible but proximity to the airport and northern expansion momentum could drive significant appreciation.
What property type will give the best return in Tanzania over 5 years as of 2026?
As of early 2026, mid-market apartments and townhouses in well-managed communities are expected to give the best total return in Tanzania over 5 years, combining steady appreciation with rentable income.
The projected 5-year total return for this top-performing property type is 50 to 70%, accounting for both price appreciation (35 to 45%) and cumulative rental income (15 to 25% of purchase price).
The main structural trend favoring mid-market apartments and townhouses over 5 years in Tanzania is the expanding middle class seeking turnkey homes with security and services, as self-building becomes less practical amid rising material costs.
For investors seeking the best balance of return and lower risk over 5 years in Tanzania, townhouses in established gated compounds offer more stable tenant demand and lower management complexity than apartments while still capturing strong appreciation.
How will new infrastructure projects affect property prices in Tanzania over 5 years?
The three major infrastructure projects expected to most impact Tanzania property prices over the next 5 years are the Standard Gauge Railway expansion (now connecting Dar es Salaam to Mwanza), the Kwala Dry Port development, and continued urban road network expansion.
The typical price premium for properties near completed infrastructure projects in Tanzania ranges from 15 to 30%, based on the observed impact of the SGR's first phases and major road improvements around Dar es Salaam.
The specific neighborhoods in Tanzania that will benefit most from these infrastructure developments include Kigamboni (near the dry port corridor), areas along the SGR stations from Dar es Salaam through Dodoma to Mwanza, and northern Dar es Salaam suburbs benefiting from improved road access.
How will population growth and other factors impact property values in Tanzania in 5 years?
Tanzania's projected urban population growth rate of roughly 5% annually over the next 5 years is expected to maintain strong upward pressure on property values, as housing supply struggles to keep pace with demand.
The demographic shift with the strongest influence on Tanzania property demand will be household formation among young professionals aged 25 to 40, who are increasingly seeking formal housing rather than informal settlements or family compounds.
Migration patterns, including rural-to-urban movement and diaspora return investment, are expected to concentrate property value growth in Dar es Salaam, Arusha, and Zanzibar, while secondary cities like Dodoma may see accelerating demand as government functions expand.
The property types and areas in Tanzania that will benefit most from these demographic trends are affordable apartments and townhouses in Dar es Salaam's expanding suburbs, where young professionals can access mortgage finance and commute to employment centers.
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 is the 10 year property price outlook in Tanzania?
What is the 10-year property price prediction for Tanzania as of 2026?
As of early 2026, cumulative property price growth in Tanzania over the next 10 years is expected to reach 48 to 79% in nominal terms under base-case assumptions.
The range of 10-year forecasts spans from a conservative scenario of around 40% total growth (assuming financing constraints persist) to an optimistic scenario of 100%+ (if mortgage penetration significantly deepens and infrastructure investment accelerates).
This translates to a projected average annual appreciation rate of 4 to 6% per year for Tanzania property over the 2026 to 2036 period.
The biggest uncertainty factor in making 10-year Tanzania property price predictions is the pace of mortgage market deepening, as mortgage debt remains a small share of GDP and any significant expansion could substantially lift transaction capacity and prices.
What long-term economic factors will shape property prices in Tanzania?
The three long-term economic factors that will shape Tanzania property prices over the next decade are urban job creation and income growth, the depth and accessibility of mortgage finance, and inflation stability that preserves buyer purchasing power.
The single long-term economic factor with the most positive impact on Tanzania property values will be sustained GDP growth above 5%, which supports employment, household formation, and the ability of more Tanzanians to access formal housing.
The single long-term economic factor posing the greatest structural risk to Tanzania property values is persistently high mortgage interest rates, which could limit the pool of qualified buyers and constrain price growth even as demand rises.
You'll also find a much more detailed analysis in our pack about real estate in Tanzania.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Tanzania, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Tanzania National Bureau of Statistics (NBS) | Tanzania's official statistics agency for inflation, GDP, and population data. | We used NBS releases to anchor the macro backdrop that drives housing affordability. We also framed where demand concentrates using census-linked publications. |
| NBS CPI Release (Nov 2025) | Official inflation bulletin directly published by the national statistics agency. | We used it to quantify the inflation environment going into 2026. We also checked housing-related inflation sub-components as a cost pressure sanity check. |
| NBS 2022 Census Hub | Official entry point for Tanzania's Population and Housing Census outputs. | We used it to justify where housing demand is structurally strongest. We grounded neighborhood discussions around major metros using this data. |
| NBS National Population Projections (2023-2050) | Official forward-looking demographic baseline built from census data. | We used it to support the 5 to 10 year demand story. We avoided hand-wavy population claims by referencing these projections. |
| Bank of Tanzania Publications | Central bank's official library of monetary and macro reports. | We used it to cite dated BoT publications and cross-check interest rate policy. We verified liquidity conditions and credit trends here. |
| BoT Monthly Economic Review (Dec 2025) | Bank of Tanzania's flagship macro snapshot closest to our January 2026 cutoff. | We used it to describe current macro conditions affecting housing. We kept our narrative time-consistent with January 2026 using this source. |
| Tanzania Mortgage Refinance Company (TMRC) | Specialist housing finance institution with the best mortgage statistics available. | We used it to source mortgage market size, growth, and interest rate ranges. We used mortgage data as a proxy for formal housing demand. |
| TMRC Mortgage Market Update (March 2025) | Primary PDF report with specific mortgage figures directly from TMRC. | We used it to quantify mortgage debt outstanding, growth rates, and average debt size. We translated these into home price estimates for the formal market. |
| IMF Tanzania Country Page | Top-tier international institution for macro projections and country surveillance. | We used it to anchor 2026 GDP growth and inflation expectations. We mapped these macro assumptions into our price growth scenarios. |
| UN DESA World Urbanization Prospects | Gold standard for global urbanization and city growth projections. | We used it to support the structural urban pull behind housing demand. We explained why certain metros matter more than the national average. |
| Ministry of Lands Housing Policy (July 2025) | Official ministry source reflecting policy priorities and supply constraints. | We used it to ground the supply side story around planning and urban growth. We highlighted Tanzania-specific factors affecting housing delivery. |
| CAHF Housing Finance Yearbook (Tanzania) | Specialist housing finance research organization with cross-country evidence. | We used it to triangulate housing finance context like titles and urban conditions. We cross-checked the TMRC and BoT narrative about finance access. |
| National Housing Corporation Financial Report | Official audited report for Tanzania's national housing developer. | We used it to support institutional context on formal housing supply. We avoided over-relying on private anecdotes for supply constraint discussions. |
| TanzaniaInvest Real Estate Section | Respected business portal covering Tanzania's investment and construction sector. | We used it for current market updates and transaction trends. We cross-referenced mortgage growth and policy developments here. |
| TanzaniaInvest SGR Coverage | Comprehensive tracking of Tanzania's Standard Gauge Railway development. | We used it to assess infrastructure impact on property values. We identified which corridors and neighborhoods benefit from SGR expansion. |
| Statista Tanzania Real Estate | Global statistics platform with standardized market size and forecast data. | We used it to cross-check market growth projections. We validated our residential sector CAGR estimates against their forecasts. |
| TICGL Economic Analysis | Tanzania-based economic consulting group with detailed macro analysis. | We used their inflation and economic outlook studies to refine our 2026 projections. We incorporated their scenario modeling for risk assessment. |
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If you want to go deeper, you can read the following: