Zanzibar's property market continues to mature, driven by sustained tourism growth, improving infrastructure, and increasing international awareness. This market report provides a data-driven overview of where the market stands in 2026 and where it is heading.
Market Overview
Tourism arrivals to Zanzibar have shown consistent year-on-year growth, with direct international flights expanding from Europe, the Middle East, and Southern Africa. This visitor demand directly fuels the accommodation market — from luxury villas to boutique hotels and holiday rentals.
Price Trends by Area
Beachfront land prices across the east and north coasts have appreciated as available coastal plots become scarcer. Paje and Nungwi command premium pricing, while emerging corridors like Jambiani and the south-east coast offer earlier-stage entry points.
**Luxury villas**: Premium villa pricing in Nungwi and Paje has stabilised, with well-positioned properties maintaining strong values. Off-plan pricing in development zones like Fumba offers early-stage discounts.
**Land**: Beachfront land remains the most sought-after asset class, with limited supply and growing demand from both developers and individual buyers.
Key Market Drivers
- Tourism growth: Rising visitor numbers sustain accommodation demand across all segments.
- Infrastructure: Airport expansion, road improvements, and marina projects enhance accessibility.
- Digital nomad influx: Remote work trends drive demand for long-stay rentals and co-living spaces.
- International awareness: Zanzibar's profile as an investment destination continues to rise globally.
Outlook
The medium-term outlook for Zanzibar real estate remains positive. Scarce coastal land, growing tourism, and improving infrastructure form a strong foundation for continued market appreciation. The key for investors is informed entry — with proper due diligence, area selection, and professional advisory.