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Where are the best places to invest in Tanzania right now? Is Dar es Salaam still the top pick, or are cities like Arusha, Mwanza, and Dodoma gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Tanzania and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Mikocheni in Dar es Salaam is booming with rising property values and closeness to business hubs
Mikocheni in Dar es Salaam has become a hot spot in the real estate market, and there are a few key reasons for this. First, property values in Mikocheni have been on the rise, with projected apartment prices for 2025 ranging from $1,000 to $1,400 per square meter. This increase is partly due to gentrification and new transport links that have been developed over the past few years, making the area more attractive to buyers and investors.
Another reason Mikocheni is so appealing is its proximity to major business hubs. It's conveniently located between the Old and New Bagamoyo roads, which makes it easily accessible to the city center and other important business areas. This location advantage is a big draw for both residents and businesses, as it offers easy access to corporate offices and non-governmental organizations that are already established in the area.
Additionally, Mikocheni has seen significant infrastructure developments, including new transport links that enhance connectivity. The presence of Regent Estate, a planned residential area popular with politicians, adds to the neighborhood's appeal. These factors, combined with the area's lively atmosphere and variety of accommodation options, make Mikocheni a high-demand area for real estate.
Sources: Wanted in Africa, The African Investor
2) Singida Town is gaining interest for its affordable land and development potential as it expands
Singida Town is quickly becoming a real estate hotspot for investors.
Over the past decade, Singida's population has surged, jumping from 1.37 million in 2012 to over 2 million by 2022. This boom means more people need homes and businesses, making it a prime spot for real estate development. The town's growth is not just in numbers; it's in opportunity.
Urbanization is another big draw. Back in 2002, only about 115,000 people lived in Singida's urban areas. Fast forward to 2022, and that number has nearly tripled to 322,038. This shift shows a clear demand for new housing projects, which is music to the ears of savvy investors. Plus, the government is pouring money into infrastructure, making the town more accessible and livable.
On the economic front, Tanzania is on the rise, with an expected growth rate of 5.5% annually over the next five years. This economic upswing is likely to bring more businesses to Singida, boosting the need for both homes and commercial spaces. It's a cycle of growth that benefits everyone involved.
While we don't have exact numbers comparing land prices in Singida to other regions, it's known that emerging markets like Tanzania often offer more affordable land than big cities like Dar es Salaam. This affordability is a key factor attracting investors looking for cost-effective opportunities.
As Singida continues to grow, the potential for development is immense. Investors are eyeing the town not just for its current affordability but for its future promise. The combination of population growth, urbanization, and economic expansion makes Singida a compelling choice for real estate ventures.
Sources: City Population, Singida DC Socio-Economic Profile, Tanzania Buy Property
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.
3) Mtwara's Mikindani area is gaining interest for its historical charm and coastal appeal, attracting real estate investors
Mtwara's Mikindani area is becoming a hot spot for real estate investments.
Foreign investors are showing a keen interest in this region, thanks to its strategic location and abundant natural resources. These factors are drawing in foreign direct investment, which is expected to spur growth and innovation in the real estate sector.
Infrastructure development is another big draw. The Mtwara Region boasts a well-connected transport network, including Mtwara Airport, reliable roads, and a bustling port. This makes the area more accessible and attractive for both investors and future residents.
Mikindani's rich history and stunning coastline are also major attractions. These features are likely to draw tourists, boosting the local economy and creating a demand for vacation homes and other real estate properties.
The coastal beauty and strategic location of Mikindani make it an appealing choice for those looking to invest in vacation homes. This trend is supported by the area's growing reputation as a tourist destination.
Sources: Zurich Insurance EA, UNDP Mtwara Region Investment Guide
4) Arusha City is booming with high rental yields as a gateway to major tourist attractions
Arusha City is buzzing with a real estate boom, thanks to its prime location near major tourist hotspots.
With its close proximity to Mount Kilimanjaro and Serengeti National Park, Arusha is a magnet for tourists, which in turn fuels the demand for short-term rentals. This demand is evident in the high occupancy rates of rental properties, making it a lucrative spot for property investors.
Arusha's appeal doesn't stop at tourism. The city is seeing a surge in property prices, driven by a growing middle class and improved infrastructure. Government initiatives are also playing a role, aiming to boost the housing sector and make the city even more attractive for real estate ventures.
Real estate agencies are taking note, marking Arusha as a top investment destination. The city's increasing number of real estate transactions is a testament to its growing allure among investors looking to capitalize on its booming tourism and infrastructure development.
For those considering a property purchase, Arusha offers a unique blend of natural beauty and economic opportunity. The city's strategic position as a gateway to some of Africa's most famous attractions makes it a hotspot for both tourists and investors alike.
Sources: Mrisho Consult, Encounters Travel, The Citizen, East African Community
5) Kigamboni in Dar es Salaam is a real estate hotspot with new infrastructure and a scenic coastal location attracting interest
Kigamboni in Dar es Salaam is turning heads in the real estate world for a few compelling reasons.
One major factor is the Tanzanian government's hefty investment in infrastructure, like the Kigamboni Bridge. This bridge, the largest cable-stayed one in East Africa, has made getting to Dar es Salaam a breeze, cutting down travel time and boosting economic opportunities. As a result, property values are climbing, attracting both investors and homeowners who love the mix of city and beach vibes.
In Kigamboni, the average price per square meter is quite appealing, offering a sweet spot between cost and lifestyle. The area's scenic coastal location is a magnet for tourists, which in turn pumps up the local economy and spikes property demand. New residential and commercial projects are popping up, including eco-friendly developments, schools, and parks, making it even more attractive.
What's interesting is that this buzz isn't just local. International investors are also eyeing Kigamboni, seeing it as a potential gateway to East Africa. The blend of new infrastructure and natural beauty is hard to resist, and it's drawing a diverse crowd of buyers and investors.
With all these developments, Kigamboni is not just a place to live; it's becoming a lifestyle choice. The area offers a unique blend of urban convenience and coastal relaxation, making it a hot spot for those looking to invest in a promising future.
Sources: FasterCapital, MediaWire Express
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6) Dodoma’s Nkuhungu neighborhood is gaining interest for its affordable land and potential for significant property appreciation as the city grows
Dodoma's Nkuhungu neighborhood is quickly becoming a favorite spot for investors.
With Dodoma's population estimated to hit 324,997 in 2024, the city is buzzing with growth. This steady increase, at a rate of 3.56% from 2012 to 2024, means more people are looking for homes and business spaces, which could drive up property values.
The Tanzanian government is pouring resources into Dodoma's infrastructure, like roads and public transport, making Nkuhungu more accessible and attractive for investment. Since Dodoma became the official capital in 1996, there's been a surge in government and administrative activities, which has further fueled the demand for housing and commercial properties.
Urbanization is a big deal in Tanzania, and cities like Dodoma are feeling the pressure. As more folks move to urban areas, the need for housing skyrockets, nudging property prices upward. While we don't have exact figures for Nkuhungu, it's known for its affordable land prices, making it a hot pick for those eyeing property appreciation.
Investors are particularly drawn to Nkuhungu because of its potential for significant property appreciation as Dodoma continues to develop. The neighborhood's affordability combined with the city's growth trajectory makes it a promising investment.
As Dodoma expands, Nkuhungu stands out as a neighborhood with both affordable land and promising growth potential, attracting savvy investors looking to capitalize on the city's development.
Sources: World Population Review, Tanzania Price Forecasts
7) Tanga City is gaining interest with its strategic port location and improving infrastructure
Tanga City is buzzing with real estate activity thanks to its prime spot as a port city.
The heart of this boom is the modernization of Tanga Port, which saw a hefty investment of 429.1 billion Tanzanian Shillings. This upgrade has made the port more efficient, allowing it to handle larger ships and significantly increase cargo handling. This boost in cargo handling has surpassed expectations, driving economic growth in the region.
But it's not just the port that's getting a makeover. The government is also enhancing transportation infrastructure with projects like road expansions and a new dry port in Mwambani. These improvements are making Tanga more accessible, linking it seamlessly to other major cities and attracting both investors and new residents.
As a result, property values in Tanga are on the rise. The city's improved connectivity is a magnet for investors, leading to a surge in real estate transactions. New residential and commercial projects are popping up, catering to the needs of a growing urban population.
The demand for real estate in Tanga is fueled by urbanization and bustling economic activities. This demand is not just about numbers; it's about modern, well-planned developments that meet the needs of today's city dwellers. These developments are a key driver of the real estate boom, making Tanga a hot spot for property buyers.
With all these changes, Tanga is transforming into a vibrant hub, offering opportunities for those looking to invest in property. The city's strategic location and improved infrastructure are the main attractions, drawing attention from far and wide.
Sources: Mrisho Consult, Daily News, Tanzania Real Estate Market
8) Mwanza’s Ilemela district is attracting interest with its rising property values and expanding urban development
Mwanza's Ilemela district is becoming a hotspot for property buyers due to its rising property values and expanding urban development.
People are flocking to Mwanza for better job opportunities and modern amenities, which has led to a surge in housing demand. This influx is pushing property prices up, making it a prime area for real estate investment.
The government is also playing a big role with projects like the Tanzania Cities Transforming Infrastructure and Competitiveness (TACTIC), funded by the World Bank. These initiatives are improving infrastructure, making Mwanza more appealing for both residents and investors.
Mwanza's strategic location near Lake Victoria and its involvement in the mining sector are fueling its rapid urban development. This has led to a boom in commercial and residential projects, further driving up property values.
The local government is not slowing down, with plans for urban expansion that include new markets and infrastructure projects. These developments are expected to keep boosting property values in Ilemela.
Sources: Statista, Daily News, Tanzania Invest
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.
9) Zanzibar's Fumba Town is thriving with eco-friendly projects, attracting local and international buyers
Fumba Town in Zanzibar is a hot market thanks to its eco-friendly developments.
Buyers are drawn to the town's use of sustainable building materials like engineered timber, which was recently highlighted at a wood exhibition featuring high-tech samples. This commitment to sustainability is not just a local trend; it has caught the eye of international buyers and led to partnerships with global real estate agencies.
Fumba Town's holistic lifestyle approach includes solar energy and water recycling systems, setting a new standard in sustainable urban living. These features have made the town a magnet for those looking to invest in a greener future, both locally and globally.
Property values in Fumba Town are on the rise, reflecting its growing appeal. The area now boasts modern amenities and services, which have not only made it more desirable but also contributed to job creation and economic development.
Government-backed infrastructure projects, like the Kasani-Fumba Road, have further boosted the town's attractiveness by reducing travel time and easing congestion. This makes Fumba Town not just a place to live, but a smart investment for the future.
Sources: Disfruta Zanzibar, Fumba Town, YouTube
10) Tabora City is gaining interest with its expanding infrastructure and growth potential
Tabora City is becoming a hot spot for real estate investors due to its expanding infrastructure.
The city has been busy upgrading its roads, making travel much smoother. Key routes like the Nzega-Tabora and Tabora-Urambo roads are now being improved to bitumen standard, which is a big deal for anyone looking to invest here. This means easier access and better connectivity, which are crucial for both residents and businesses.
On the railway front, Tabora is a central hub, and the government is upgrading the network to a standard gauge. This makes transport more efficient and strengthens the system overall. With these upgrades, moving people and goods in and out of the city is becoming a breeze, which is a huge plus for potential investors.
Beyond roads and railways, the Tanzanian government is also focusing on electricity and water supply. The city is connected to the National Grid, and there are plans to involve private companies in power generation. This means more reliable electricity, which is essential for a growing city.
Water supply is also getting a boost with projects like the Lake Victoria water supply project. This aims to increase water production capacity, ensuring that Tabora can support its expanding population. Such developments make the city more attractive for those looking to invest in property.
Sources: Columbia University, African Development Bank
11) Morogoro's Kihonda area is gaining interest for its affordable homes and closeness to the city center
Kihonda in Morogoro is catching the eye of real estate investors for its affordable housing and strategic location.
Morogoro's population has boomed, jumping from 100,000 in 1988 to 300,000 in 2022, fueling a demand for housing. This growth is particularly evident in Kihonda, where people are drawn to its balance of affordability and convenience.
Families and individuals find Kihonda appealing due to its proximity to essential services like schools and hospitals. The government's efforts to improve transportation, including roads and airports, have made the area even more accessible, enhancing its attractiveness for development.
Investors are also interested in Kihonda because of the availability of larger plots at lower prices compared to other urban areas. This affordability is a key factor for those looking to acquire land without breaking the bank.
As Kihonda continues to urbanize, property values are on the rise, making it a promising area for real estate investment. The economic growth in the region is a significant driver of this trend, offering potential for substantial returns.
With its strategic location and affordable options, Kihonda is becoming a hotspot for those looking to invest in real estate, offering a unique blend of opportunity and growth potential.
Sources: Statista, UN Habitat, Price Forecasts
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.