Island Living

Written by Jacques Nell

I’ve been in real estate for more than 15 years, working on luxury villa and apartment developments in Cape Town, Mauritius, and now Zanzibar. I’ve watched markets rise and mature, and I can say with certainty: Zanzibar is entering a once in a generation growth phase. Investors who move now stand to benefit from both short-term rental yields and long-term capital appreciation that rivals any island market in the Indian Ocean.

The Numbers Don’t Lie

Zanzibar’s real estate market has exploded in the past few years. In 2024, foreign property acquisitions rose by nearly 20%, while annual property value appreciation reached up to 15% in some developments.

That’s not speculation, it’s proven performance. Investors who purchased off-plan villas or apartments two years ago are already seeing double digit returns, even before construction on some projects is complete. With continued demand, this trajectory is set to accelerate.

Tourism: The Engine Behind Zanzibar’s Growth

Tourism is the heartbeat of any island economy, and Zanzibar is no exception. The island welcomed over 1 million international visitors in 2024, a 14.2% increase year-over-year.

Why does this matter to you as an investor? Because every tourist represents rental demand, whether they’re staying in boutique hotels, serviced apartments, or luxury villas. A well positioned property in Zanzibar can achieve occupancy rates of 65%–75%, generating rental yields that outperform most global resort markets.

Tourism growth is supported by:

Improved infrastructure: new direct flights from Europe and the Middle East. Global hospitality brands entering the market: Anantara, Park Hyatt, and soon Four Seasons residences. Zanzibar’s dual appeal: pristine beaches and easy access to mainland Tanzania’s world class safaris.

The Investment Climate: Open and Welcoming

For years, foreign ownership in Zanzibar was complex. That has changed. With the Zanzibar Condominium Act and support from ZIPA (Zanzibar Investment Promotion Authority), international buyers now have clear pathways to property ownership.

Condominium Act: allows foreigners to buy and register apartments or villas in their own name. ZIPA: offers investor incentives, residency permits, and protection for foreign capital. Stable currency environment: property transactions are conducted in USD, adding security for international buyers.

This favorable regulatory framework has transformed Zanzibar into an accessible and secure investment destination.

Comparing Zanzibar to Other Island Markets

When investors compare Zanzibar to Mauritius, Seychelles, or Maldives, one factor stands out: entry price.

In Mauritius, luxury beachfront villas often start from $1.5M to $2M+. In Seychelles, similar properties range from $2M to $4M+. In Zanzibar, you can still acquire luxury beachfront villas from $350K to $1M, depending on location and project.

This price gap provides tremendous upside. As Zanzibar continues to develop, we can expect property values to rise significantly, closing the gap with its Indian Ocean neighbors.

Off-Plan Developments: The Smart Investor’s Advantage

Zanzibar’s off-plan real estate market is where many investors are focusing. Buying before completion provides:

Below-market entry prices: Early investors lock in the lowest rates. Flexible payment plans: staged payments tied to construction milestones. Customization: buyers often have the chance to choose finishes, layouts, or even design tweaks. Capital appreciation: by the time a project is complete, values have already risen.

For example, projects launched in Michamvi or Paje two years ago started with villas priced under $300K. Today, those same villas are reselling for $400K–$500K.

Rental Yields and Lifestyle Returns

For many of my clients, investing in Zanzibar real estate isn’t just about numbers, it’s about lifestyle. They want a property they can enjoy for part of the year while it generates income the rest of the time.

High rental yields: villas in prime beachfront areas achieve 8%–12% annually, with some exceeding 15% at higher occupancy. Hands-free management: most developments offer turnkey rental programs, from marketing to housekeeping. Personal use: owners can enjoy their property for holidays, combining personal lifestyle benefits with investment returns.

It’s the perfect blend of business and pleasure: a strong-performing asset that doubles as a holiday home in paradise.

Why Now Is the Right Time

Timing is everything in real estate. Zanzibar is at the start of its growth curve, and early investors benefit the most.

Tourism arrivals are breaking records annually. New hospitality brands are raising international awareness and property demand. Infrastructure improvements (airports, roads, utilities) are increasing accessibility. Global attention: investors from Europe, South Africa, UAE, and the U.S. are already entering the market.

Delaying means higher entry prices, reduced availability, and missed opportunities for capital appreciation.

Key Investment Hotspots

Michamvi & Pingwe – known for luxury villas, boutique resorts, and proximity to The Rock Restaurant. Paje & Jambiani – the heart of Zanzibar’s kitesurfing culture, strong rental demand, and vibrant expat community. Nungwi & Kendwa – Zanzibar’s north coast, home to some of the island’s best beaches and nightlife. Kiwengwa – a favorite for Italian and European investors, with long white beaches and growing developments.

Each location offers a unique investment angle, from high-yield holiday rentals to long-term capital growth.

Final Thoughts

Zanzibar real estate is no longer a secret. It’s a market with proven performance, strong fundamentals, and massive untapped potential. Whether you’re looking for:

A beachfront villa for personal use, A high-yield apartment for rental income, or Land for development,

…Zanzibar offers opportunities unmatched in the region.

I’ve seen this story before in Cape Town and Mauritius, markets that transformed from hidden gems into global investment hotspots. Zanzibar is following the same path, but with even stronger tourism growth and more attractive entry prices.

👉 If you’re ready to explore investment opportunities in Zanzibar real estate, now is the time. Contact me directly, and I’ll share exclusive off-plan projects, beachfront land opportunities, and detailed ROI projections.