Building and Investing in Property in Tanzania

Are you an expat planning to build or invest in property in Tanzania? You are not alone. Many foreigners living in Dar es Salaam, Arusha, Dodoma, and Zanzibar see real estate as one of the most secure ways to grow wealth. Property here can deliver strong rental returns, and costs are often lower than in Europe or North America.

But building in Tanzania is not as straightforward as it looks on paper. Over 70% of projects end up over budget or delayed, and many expats face frustrations with permits, unreliable contractors, or hidden costs they did not expect.

The good news is that with the right guidance, these challenges can be avoided. At Elegant Designs, we have helped many expats turn risky projects into lasting investments. Here is what you need to know before you start. 

1. Understanding Local Regulations

Every building project in Tanzania needs approvals, permits, and compliance with local building codes. This process can feel overwhelming for newcomers.

For example, getting approval for a residential house in Dar es Salaam typically takes 4–8 weeks if the paperwork is complete. Without the right guidance, the process can drag into several months, adding delays and unexpected costs.

Working with a local architectural firm ensures that all permits, drawings, and documents are handled properly from the start. 

2. Finding Reliable Contractors

One of the biggest risks for expats is hiring contractors based on the lowest price. While it may seem like savings upfront, poor workmanship often results in leaks, cracks, unfinished projects, or even demolition later on.

We once reviewed a commercial building where the contractor had used substandard materials. Within two years, the roof leaked, walls cracked, and plumbing failed. In the end, the client spent billions to demolish and rebuild — far more than the “savings” from hiring the cheapest builder.

The lesson is simple: cheap is expensive. Reliable supervision and trusted contractors are the backbone of any successful project. 

3. Choosing the Right Location

Location is one of the most important decisions for expats investing in property. Each region comes with unique opportunities and challenges:

• Dar es Salaam: Strong rental demand but coastal humidity and salt can damage buildings. Proper materials are critical.
• Arusha: Popular with tourism and NGOs, but soil conditions vary, making structural testing important.
• Dodoma: As the capital grows, property demand rises, but infrastructure can lag in some areas.
• Zanzibar: Beautiful for tourism investments, but strict regulations apply for foreigners.

A design that works in London or Dubai may not last long in these conditions. Buildings in Tanzania must be adapted to climate and soil realities.

4. Budgeting Realistically

Many expats underestimate costs because budgets look cheaper than abroad. The reality is different.

Hidden expenses like soil tests, permits, approvals, and utility connections can add up to 15–20% of the total project cost. Without these in the budget, projects almost always go over.

On top of that, changes mid-project (like bigger balconies or upgraded finishes) can add another 10–25% to the total cost.

The best approach is to prepare a detailed budget from the start that includes all these items and to stick to it as much as possible.

5. Designing for the Long Term

Expats often want their property to serve multiple purposes: personal use today and rental income tomorrow. The challenge is designing a space that works for both.

For example, a luxury home may feel comfortable for you, but if it lacks practical layouts, it may not attract long-term tenants. On the other hand, a purely rental-focused design might not feel like a home.

A well-thought-out design balances both goals and ensures your property keeps its value for decades.

How Elegant Designs Helps Expats

We have worked with expats from Europe, Asia, and across Africa who wanted to build in Tanzania. What sets us apart is our end-to-end guidance:

• Preparing detailed architectural designs
• Handling permits and approvals smoothly
• Helping you choose materials that balance cost and durability
• Supervising contractors to avoid mistakes and wastage
• Planning for the long term so your investment grows in value

Our goal is simple: to save you money, protect your investment, and give you peace of mind while you build in Tanzania.

Frequently Asked Questions (FAQs)

Can expats own property in Tanzania?
Yes. Foreigners cannot own land outright but can lease it for up to 99 years. Most expats invest through long-term leases or partnerships.

How long does it take to build a house in Tanzania?
A well-planned residential project can take 9–12 months. Poorly planned projects often drag into 18–24 months.

What is the average cost per square meter to build? 

Costs vary depending on finishes and location, but in Dar es Salaam it often ranges from TZS 800,000 to TZS 1,400,000 per square meter.

What mistakes should I avoid as an expat?
Rushing into construction without proper plans, hiring the cheapest contractor, and ignoring permits are the three most common and costly mistakes.

Final Thoughts

Building in Tanzania as an expat can be a rewarding experience, but it requires careful planning and trusted local expertise. With the right team by your side, you can avoid delays, budget overruns, and poor-quality work — and instead enjoy a property that grows in value for years to come.

If you are an expat planning to build in Tanzania, we would be happy to guide you.

📩 Email us at designers@elegant.africa
📲 WhatsApp us at +255 745 749 973