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
Tanzania's residential property market offers foreign buyers a unique mix of coastal luxury, safari lifestyle, and emerging urban growth in early 2026.
The country operates under a land system where property is held through leasehold structures rather than freehold, which means understanding title and ownership pathways is essential before you invest.
We constantly update this blog post to reflect the latest market conditions, neighborhood trends, and investment opportunities across Tanzania.
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.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What's the Current Real Estate Market Situation by Area in Tanzania?
Which areas in Tanzania have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Tanzania are Masaki and Oyster Bay in Dar es Salaam (reaching TZS 11 million per square meter), Stone Town in Zanzibar (around TZS 9 million per square meter), and the Nungwi beachfront corridor in Zanzibar (up to TZS 7 million per square meter).
In these premium Tanzania neighborhoods, typical prices range from TZS 3.5 million to TZS 11 million per square meter, with the very best waterfront properties in Masaki and luxury Stone Town restorations sitting at the top of that band.
Several distinct factors drive prices in each of these high-value areas:
- Masaki and Oyster Bay: embassy presence, expat corporate leases, and coastal scarcity create consistent demand.
- Stone Town: UNESCO heritage status limits new construction and attracts cultural tourism buyers.
- Nungwi beachfront: prime tourism location with strong short-term rental revenue potential.
Which areas in Tanzania have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Tanzania for residential property include Mbagala and Temeke in Dar es Salaam (starting at TZS 1.2 million per square meter), Chanika and Pugu on the city outskirts (TZS 1.5 million to TZS 2 million per square meter), and Fuoni near Zanzibar City (around TZS 2 million per square meter).
In these budget-friendly Tanzania neighborhoods, typical prices range from TZS 1.2 million to TZS 2.5 million per square meter, which translates to roughly $490 to $1,000 per square meter at current exchange rates.
The main trade-offs in these lower-priced areas vary by location: Mbagala offers improving transport access thanks to BRT Phase 2 but still has drainage issues in some blocks, Chanika and Pugu have larger plots but longer commutes and less reliable utilities, and Fuoni provides proximity to Zanzibar City at lower prices but lacks the beach access that drives tourism income.
You can also read our latest analysis regarding housing prices in Tanzania.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Tanzania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Areas in Tanzania Offer the Best Rental Yields?
Which neighborhoods in Tanzania have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Tanzania with the highest gross rental yields include Paje and Jambiani in Zanzibar (12% to 15% for well-managed vacation rentals), Sinza and Kimara in Dar es Salaam (8% to 10% for long-term rentals), and Njiro in Arusha (6% to 8% for expat and NGO tenancies).
Across Tanzania as a whole, typical gross rental yields range from 5% to 10% for long-term rentals in urban areas, while short-term vacation properties in prime Zanzibar locations can push above 12% in strong tourism years.
Each of these top-yielding Tanzania neighborhoods delivers higher returns for specific reasons:
- Paje and Jambiani: kite-surfing tourism and beach lifestyle demand push nightly rates to $150 to $300.
- Sinza and Kimara: affordable purchase prices combined with strong tenant demand from young professionals.
- Njiro in Arusha: consistent NGO and safari industry tenant pool keeps occupancy stable year-round.
Finally, please note that we cover the rental yields in Tanzania here.
Make a profitable investment in Tanzania
Better information leads to better decisions. Save time and money. Download our guide.
Which Areas in Tanzania Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Tanzania perform best on Airbnb in 2026?
As of early 2026, the top-performing Airbnb neighborhoods in Tanzania are Stone Town in Zanzibar (steady year-round demand with occupancy around 65% to 75%), Nungwi and Kendwa on Zanzibar's north coast (peak season rates of $200 to $500 per night), and Paje on the east coast (strong kite-surfing season demand from November to March).
In these prime Tanzania vacation rental locations, top-performing properties can generate TZS 15 million to TZS 40 million per month ($6,000 to $16,000) during peak season, though annual averages are lower due to seasonality.
Each of these neighborhoods outperforms others for distinct reasons:
- Stone Town: UNESCO heritage appeal draws cultural tourists year-round, reducing seasonal gaps.
- Nungwi and Kendwa: classic beach resort demand with European winter sun travelers as the core market.
- Paje: specialized kite-surfing community creates repeat bookings and strong shoulder season performance.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tanzania.
Which tourist areas in Tanzania are becoming oversaturated with short-term rentals?
The three tourist areas in Tanzania showing signs of oversaturation in early 2026 are the Paje beachfront strip (where new investor villas are launching faster than demand grows), the central Nungwi tourist belt (heavy investor attention creating supply pressure), and parts of Kendwa (where similar villa projects compete for the same guest pool).
In these oversaturated Zanzibar corridors, active short-term rental listings have grown by an estimated 15% to 25% year-over-year while tourist nights have grown only 8% to 12%, creating a supply-demand imbalance that pressures occupancy rates.
The clearest sign of oversaturation is when properties start discounting nightly rates by 20% or more during shoulder seasons just to maintain bookings, and when average occupancy drops below 50% annually despite strong peak-season performance.
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 Areas in Tanzania Are Best for Long-Term Rentals?
Which neighborhoods in Tanzania have the strongest demand for long-term tenants?
The neighborhoods in Tanzania with the strongest long-term rental demand in early 2026 are the Ubungo axis (including Sinza, Kimara, and Goba) in Dar es Salaam, Mikocheni in Dar es Salaam, Upanga near the city center, and Njiro in Arusha.
In these high-demand Tanzania rental markets, well-priced properties typically rent within 2 to 4 weeks of listing, with vacancy rates staying below 10% annually for quality units in good locations.
Each neighborhood attracts a distinct tenant profile:
- Sinza, Kimara, and Goba: young professionals, small families, and commuters seeking affordable rents.
- Mikocheni: middle-class families and mid-level professionals wanting safety and school access.
- Upanga: professionals working in central Dar es Salaam who prioritize short commutes.
- Njiro in Arusha: NGO staff, safari industry workers, and expat consultants on multi-year contracts.
The key amenity that makes these neighborhoods attractive is reliable access to transport links, whether that means proximity to BRT stations in Dar es Salaam or good road connections to workplaces and schools.
Finally, please note that we provide a very granular rental analysis in our property pack about Tanzania.
What are the average long-term monthly rents by neighborhood in Tanzania in 2026?
As of early 2026, average long-term monthly rents in Tanzania vary dramatically by neighborhood, ranging from around TZS 1 million ($400) in affordable Dar es Salaam suburbs to over TZS 10 million ($4,000) for prime coastal properties in Masaki and Oyster Bay.
In the most affordable Tanzania neighborhoods like Kimara, Goba, and Mbagala, entry-level apartments rent for TZS 1 million to TZS 3 million per month ($400 to $1,200), making them accessible to local middle-class tenants.
In mid-range neighborhoods like Mikocheni, Sinza, and parts of Upanga, typical rents run TZS 1.8 million to TZS 4.5 million per month ($700 to $1,800) for decent quality apartments with reliable utilities.
In premium Dar es Salaam neighborhoods like Masaki, Oyster Bay, and prime Msasani, high-end apartments and townhouses rent for TZS 4.5 million to TZS 11 million per month ($1,800 to $4,500), with luxury villas commanding even higher rates.
You may want to check our latest analysis about the rents in Tanzania here.
Get fresh and reliable information about the market in Tanzania
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which Are the Up-and-Coming Areas to Invest in Tanzania?
Which neighborhoods in Tanzania are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Tanzania attracting the most investor attention include select pockets of Kigamboni in Dar es Salaam (especially areas with improving road access), the Mbagala catchment near new BRT Phase 2 stations, and Jambiani in Zanzibar (benefiting from spillover as Paje becomes crowded).
These gentrifying Tanzania neighborhoods have experienced annual price appreciation of roughly 8% to 12% over the past two years, outpacing the national average of 5% to 7% as infrastructure improvements and changing perceptions attract new buyers.
Which areas in Tanzania have major infrastructure projects planned that will boost prices?
The areas in Tanzania with major infrastructure projects likely to boost property prices are the BRT Phase 2 corridor from Gerezani to Mbagala, the BRT Phase 5 route connecting Kigamboni via the Nyerere Bridge, and areas along the Standard Gauge Railway expansion from Dar es Salaam.
The BRT Phase 2 project is now operational, running 20 kilometers from Gerezani through Mbagala with 255 new buses, while BRT Phase 5 construction is advancing to connect Kigamboni and the city center.
Historically, areas along completed BRT routes in Dar es Salaam have seen property values increase 10% to 20% within two years of operations starting, as reduced commute times make previously distant neighborhoods viable for workers employed in the city center.
You'll find our latest property market analysis about Tanzania here.
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.
Which Areas in Tanzania Should I Avoid as a Property Investor?
Which neighborhoods in Tanzania with lots of problems I should avoid and why?
The neighborhoods in Tanzania that present significant challenges for property investors include flood-prone low-lying areas in Dar es Salaam (parts of Vingunguti, Msimbazi valley, and certain Kigogo blocks), unplanned settlements with unclear title documentation, and over-built tourist corridors in Zanzibar where supply has outpaced demand.
Each problem area has specific issues to watch:
- Vingunguti and Msimbazi valley: annual flooding damages properties and creates long vacancy periods.
- Unplanned Dar es Salaam settlements: title verification is difficult, making resale and financing nearly impossible for foreigners.
- Overbuilt Zanzibar beach strips: too many similar investor villas competing for the same tourist bookings.
For these areas to become viable, they would need significant drainage infrastructure investment (for flood-prone zones), formal land registration through the e-Ardhi system (for title-challenged areas), or a substantial increase in tourism demand (for oversupplied Zanzibar corridors).
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Tanzania.
Which areas in Tanzania have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Tanzania showing price stagnation include certain overbuilt vacation rental corridors in Zanzibar (where new villa supply exceeded demand growth), peripheral Dar es Salaam subdivisions with delayed infrastructure, and some older apartment buildings in secondary Arusha locations.
These stagnant Tanzania property markets have seen price growth of 0% to 2% annually over the past two years, compared to the 5% to 7% average for well-located urban properties.
The main causes of stagnation differ by area:
- Overbuilt Zanzibar corridors: investor villa supply grew 20% while tourism nights grew only 10%.
- Peripheral Dar subdivisions: promised roads and utilities remain undelivered, killing resale appeal.
- Secondary Arusha locations: newer Njiro developments drew demand away from older stock.
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.
Which Areas in Tanzania Have the Best Long-Term Appreciation Potential?
Which areas in Tanzania have historically appreciated the most recently?
The areas in Tanzania that have appreciated most strongly over the past five to ten years include the Msasani Peninsula (Masaki and Oyster Bay) in Dar es Salaam, prime beachfront corridors in Zanzibar (Nungwi, Paje), and BRT-connected neighborhoods in Dar es Salaam that gained accessibility.
These top-performing Tanzania property markets have achieved the following appreciation:
- Masaki and Oyster Bay: roughly 60% to 80% total appreciation over ten years (6% to 8% annually).
- Nungwi and Paje beachfront: approximately 100% to 120% over ten years (7% to 9% CAGR).
- BRT corridor neighborhoods: 40% to 60% since BRT Phase 1 opened in 2016.
The main driver of this above-average appreciation has been persistent scarcity in prime locations combined with growing demand from expat tenants, tourism investors, and an expanding Tanzanian middle class.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Tanzania.
Which neighborhoods in Tanzania are expected to see price growth in coming years?
The neighborhoods in Tanzania expected to see the strongest price growth through 2027 and beyond include BRT-connected nodes in Mbagala and along the Kilwa Road corridor, select Kigamboni pockets with improving infrastructure, and quieter premium Zanzibar areas like Matemwe and southern Jambiani.
Projected annual price growth for these high-potential Tanzania neighborhoods:
- BRT corridor nodes (Mbagala area): 8% to 12% annually as transport accessibility improves.
- Kigamboni (selected pockets): 7% to 10% as road and bridge connections mature.
- Matemwe and southern Jambiani: 8% to 12% if tourism continues growing and Paje oversupply pushes demand south.
The single most important catalyst for these neighborhoods is infrastructure completion, particularly BRT operations in Dar es Salaam and continued tourism growth in Zanzibar driving demand beyond the already-crowded hotspots.
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 Do Locals and Expats Really Think About Different Areas in Tanzania?
Which areas in Tanzania do local residents consider the most desirable to live?
The areas in Tanzania that local residents consider most desirable include Upanga in Dar es Salaam (for its central location and access to hospitals), Mikocheni (for family-friendly living and good schools), and the Msasani Peninsula (Masaki and Oyster Bay) as the prestige coastal address.
Each locally-preferred area appeals for specific reasons:
- Upanga: proximity to major hospitals, government offices, and established infrastructure.
- Mikocheni: safer streets, family compounds, and reliable utilities.
- Masaki and Oyster Bay: status, security, and coastline access for those who can afford it.
These locally-preferred Tanzania neighborhoods tend to attract established middle-class and upper-class Tanzanian families, professionals working in central Dar es Salaam, and business owners who value proximity to the commercial center.
Local preferences largely align with what foreign investors target, though foreign buyers tend to focus more heavily on rental yield potential while locals prioritize family lifestyle factors like school quality and community ties.
Which neighborhoods in Tanzania have the best reputation among expat communities?
The neighborhoods in Tanzania with the best reputation among expats are Masaki, Oyster Bay, and Msasani in Dar es Salaam (the classic embassy and corporate lease belt), Njiro in Arusha (for NGO and safari industry workers), and Stone Town plus the northern beach corridors in Zanzibar (for lifestyle expats).
Expats prefer these neighborhoods for distinct reasons:
- Masaki, Oyster Bay, Msasani: security compounds, international schools nearby, and employer-paid housing budgets.
- Njiro in Arusha: proximity to UN offices, safari operators, and a tight-knit expat community.
- Stone Town and north coast Zanzibar: lifestyle appeal for digital nomads and semi-retired expats.
The typical expat profile varies by location: corporate professionals and diplomats dominate the Dar es Salaam coastal areas, NGO workers and consultants cluster in Arusha, and remote workers and hospitality entrepreneurs gravitate toward Zanzibar.
Which areas in Tanzania do locals say are overhyped by foreign buyers?
The areas in Tanzania that locals commonly consider overhyped by foreign buyers include certain Zanzibar beach strips with "copy-paste" investor villas, Stone Town properties marketed for heritage value but requiring extensive renovation, and some newer Kigamboni developments that promise future growth but lack current infrastructure.
Locals believe these areas are overvalued for specific reasons:
- Investor villa corridors in Zanzibar: too many identical units competing for the same tourist bookings.
- Stone Town heritage properties: renovation costs and UNESCO restrictions often exceed what buyers budget.
- Speculative Kigamboni projects: promised infrastructure and lifestyle amenities remain years away.
Foreign buyers typically see "headline yield" projections and beachfront photos without understanding that occupancy is shared across too many competing units, or that heritage properties need years of work before generating rental income.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Tanzania.
Which areas in Tanzania are considered boring or undesirable by residents?
The areas in Tanzania that residents commonly find undesirable include peripheral Dar es Salaam subdivisions with long commutes and unreliable services, inland Zanzibar areas far from beaches and tourism infrastructure, and some older industrial-adjacent neighborhoods in secondary cities.
Residents find these areas unappealing for practical reasons:
- Peripheral Dar subdivisions: two-hour commutes in traffic, unreliable electricity, and poor drainage.
- Inland Zanzibar: no beach access, limited employment, and missing the tourism income potential.
- Industrial-adjacent neighborhoods: noise, truck traffic, and limited retail or lifestyle amenities.
Don't lose money on your property in Tanzania
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
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 |
|---|---|---|
| Bank of Tanzania | Tanzania's central bank publishing official mortgage market statistics. | We used it to understand how bank-financed the residential market really is. We also used it to check whether price moves are driven by credit or cash buyers. |
| Knight Frank Africa Report | Globally recognized property consultancy with consistent research methodology. | We used it to triangulate prime-market rent and yield logic. We also used it to understand the role of expat demand in Tanzania's residential market. |
| Tanzania Investment Centre | Official government investment agency setting pathways for foreign land rights. | We used it to explain how foreign buyers can legally hold property interests. We also used it to highlight where deal structure affects resale and financing. |
| OCGS Zanzibar Tourism Statistics | Official statistics office for Zanzibar publishing direct visitor counts. | We used it to quantify tourism demand driving short-term rental markets. We also used it to explain seasonality and corridor saturation patterns. |
| African Development Bank | High-credibility infrastructure project data with funding status and timelines. | We used it to link price movements to real transport investments. We also used it to identify which specific corridors benefit from BRT upgrades. |
| Ministry of Lands Tanzania | Responsible ministry for land administration and titling on mainland Tanzania. | We used it to anchor which authority controls registration processes. We also used it to guide readers toward official verification channels. |
| AirDNA | Recognized short-term rental data provider with property-level aggregation. | We used it to define STR metrics like occupancy and ADR. We also used it as methodology for identifying Zanzibar oversupply patterns. |
| Housing Finance Africa | Specialist housing-finance research organization used across Africa. | We used it to understand macro housing-finance constraints. We also used it to explain why cash buyers dominate and supply stays tight. |
| National Bureau of Statistics Tanzania | Official statistics agency providing CPI and inflation data. | We used it to anchor the inflation environment affecting construction costs. We also used it to keep yield discussions in real terms after inflation. |
| The Citizen Tanzania | Major national newspaper reporting on official government actions and timelines. | We used it to pin down operational dates for BRT Phase 2. We also used it to timestamp recently improved accessibility areas. |
Get the full checklist for your due diligence in Tanzania
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.