Tanzania's property market continues its strong upward trajectory in Q2 2026. Zanzibar tourism assets lead performance with gross yields of 14โ22%. Dar es Salaam prime residential prices rose 8.3% year-on-year. Commercial office vacancy in Masaki dropped to 4.2% โ the lowest in 6 years. Land prices in growth corridors (Kigamboni, Bagamoyo) appreciated 12โ18% over the last 12 months.
Dar es Salaam's premium residential market remains undersupplied. Masaki and Oyster Bay continue to command the highest prices in Tanzania's residential sector.
| Location | Avg. Villa Price | YoY Change | Rental Yield | Occupancy |
|---|---|---|---|---|
| Masaki | TZS 1.4Bโ2.8B | +9.1% | 8โ10% | 94% |
| Oyster Bay | TZS 1.8Bโ3.5B | +7.8% | 7โ9% | 91% |
| Mbezi Beach | TZS 600Mโ1.4B | +11.2% | 9โ12% | 87% |
| Mikocheni | TZS 200Mโ450M | +6.4% | 8โ11% | 89% |
| Kigamboni | TZS 80Mโ220M | +14.8% | 9โ13% | 82% |
Zanzibar continues to outperform all other regions. International tourist arrivals reached 820,000 in 2025 โ a 16% increase โ driving strong demand for hospitality assets.
| Asset Type | Price Range | Gross Yield | YoY Appreciation |
|---|---|---|---|
| Boutique Hotel (20+ rooms) | USD 800Kโ2.5M | 14โ22% | +18% |
| Beachfront Plot (Nungwi/Kendwa) | USD 400โ900/sqm | Land appreciation | +22% |
| Luxury Villa | USD 350Kโ1.2M | 12โ16% | +15% |
| Serviced Apartments | USD 180Kโ400K | 10โ14% | +12% |
| Development Land | USD 150โ500/sqm | Land appreciation | +25% |
| Sector | Prime Location | Monthly Rent | Yield | Vacancy |
|---|---|---|---|---|
| Grade A Office | Masaki, Upanga | TZS 12Kโ25K/sqm | 10โ14% | 4.2% |
| Retail (High Street) | Masaki, Kariakoo | TZS 8Kโ20K/sqm | 9โ13% | 6.8% |
| Warehouse (Industrial) | Ubungo, Kipawa | TZS 4Kโ9K/sqm | 8โ12% | 8.1% |
| Factory/Industrial | Dodoma, Ubungo | Sale or lease | Variable | 12.4% |
Our full Q2 2026 Tanzania Property Market Report is available to registered investors. Includes 45 pages of market data, forecasts, and area analysis.
Market data is based on NEXT-GEN transaction records and available market information as of Q2 2026. All figures are indicative. Past performance does not guarantee future returns. Independent professional advice recommended before investment decisions.