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Property prices in Zanzibar vary dramatically by location and property type, with luxury beachfront apartments commanding $2,400-$3,700 per square meter while inland land can cost as little as $6-$12 per square meter. As of September 2025, the market shows steady growth with tourism-driven demand pushing prices up 5-7% annually in prime coastal areas.
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Zanzibar's property market offers diverse pricing from $6 per square meter for farmland to $3,700 per square meter for luxury beachfront properties. Stone Town apartments average $1,000-$1,500 per square meter, while premium beach areas like Nungwi command $2,400-$2,800+ per square meter.
The market has grown 5-7% annually with strong tourism demand driving coastal property appreciation up to 20% in luxury zones, making it attractive for both investors and residents.
| Property Type | Area | Price per sqm (USD) |
|---|---|---|
| Apartments | Stone Town | $1,000-$1,500 |
| Luxury Apartments | Nungwi/Kendwa | $2,400-$2,800+ |
| Houses/Villas | Established Areas | $1,200-$1,500 |
| Luxury Villas | Beachfront Premium | $2,400-$3,700 |
| Land | Beachfront | $100-$140 |
| Land | Inland Residential | $20-$35 |
| Land | Central Farmland | $6-$12 |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What's the current average price per square meter for different property types across Zanzibar?
As of September 2025, Zanzibar's property prices vary significantly by type and location, with luxury beachfront properties commanding premium rates.
Apartments in Stone Town range from $1,000-$1,500 per square meter for standard units, while luxury beachfront apartments in areas like Nungwi reach $2,400-$2,800+ per square meter. High-end city center developments can cost up to $3,700 per square meter for premium locations.
Houses and villas in established neighborhoods typically cost $1,200-$1,500 per square meter, but luxury beachfront villas command $2,400-$3,700 per square meter. The price difference reflects location premium, with beachfront properties attracting significantly higher valuations due to tourism demand and limited supply.
Land prices show the most dramatic variation across Zanzibar. Beachfront plots in Nungwi and Kendwa cost $100-$140 per square meter, while inland residential land ranges from $20-$35 per square meter. Central farmland represents the most affordable option at $6-$12 per square meter, appealing to agricultural investors or those seeking long-term development opportunities.
How do prices per square meter vary between Stone Town, Nungwi, Kendwa, and other regions?
| Area | Apartments (USD/m²) | Land (USD/m²) | Houses (USD/m²) |
|---|---|---|---|
| Stone Town | $1,000-$1,500 | $80-$150 | $1,200-$1,500 |
| Nungwi (beachfront) | $2,400-$2,800+ | $100-$120 | $2,400-$3,700 |
| Kendwa | $2,400-$2,800+ | $100-$120 | $2,400-$3,700 |
| Jambiani | $1,500-$2,000 | $45-$60 | $1,200-$1,500 |
| Central Farmland | N/A | $6-$12 | N/A |
| Inland Residential | N/A | $20-$35 | N/A |
How does the average price per square meter change depending on total surface area?
Property size directly impacts the price per square meter in Zanzibar, with smaller units commanding premium rates due to scarcity and urban demand.
Smaller units under 50 square meters, particularly studios and compact apartments, carry a 10-25% premium per square meter compared to larger properties. This premium reflects high demand from investors seeking affordable entry points and tourists preferring smaller vacation properties in prime locations.
Mid-size properties between 75-150 square meters offer the best value proposition per square meter, representing the sweet spot where buyers get optimal space without paying premium small-unit rates or dealing with the complexity of managing larger properties.
Large villas exceeding 200 square meters typically see slightly lower prices per square meter due to bulk discount effects, though total investment costs remain significantly higher. These properties appeal to luxury buyers and investors targeting high-end rental markets, where absolute size matters more than per-square-meter efficiency.
What are typical total purchase prices including all fees, taxes, and closing costs?
Property purchases in Zanzibar involve several mandatory fees that add 5-10% to the listed property price, making accurate budgeting essential for buyers.
Stamp duty costs 1% of the purchase price and is paid by the buyer, while registration fees add another 0.25%. Notary fees range from 1-3% depending on the complexity of the transaction and property type.
Legal fees typically cost 1-2% of the purchase price for professional representation during the transaction process. Agent commissions range from 5-10% and are usually split between buyer and seller, though this varies by agreement.
It's something we develop in our Tanzania property pack.
For example, a $200,000 apartment purchase will likely cost $210,000-$220,000 including all fees and closing costs. Buyers should budget an additional 10% beyond the listed price to cover all transaction expenses and avoid financing shortfalls.
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How much would mortgage-related costs add per square meter if you financed the purchase?
Mortgage financing in Zanzibar comes with significant costs that substantially impact the total per-square-meter investment, requiring careful financial planning.
Down payments typically require 30-40% of the property value upfront, meaning buyers need substantial cash reserves before considering mortgage financing. This high down payment requirement reflects local banking practices and risk assessment for foreign property investments.
Mortgage interest rates range from 15-19% annually as of September 2025, down from previous rates exceeding 22% but still significantly higher than many international markets. These rates reflect Tanzania's monetary policy and inflation environment.
For a $100,000 property purchase, buyers can expect monthly mortgage payments of $800-$1,250 depending on the lender, loan term, and specific interest rate negotiated. These payments add substantial ongoing costs to the per-square-meter investment calculation.
Which areas and property types currently offer the best combination of value and livability for residents?
Several Zanzibar areas provide excellent value for residents seeking a balance between affordability, amenities, and lifestyle quality.
Jambiani and Paje offer affordable living costs with active expat communities and excellent conditions for water sports enthusiasts, particularly kitesurfing. These areas provide good value at $1,500-$2,000 per square meter for apartments while maintaining beachfront access and social infrastructure.
Stone Town delivers urban amenities, cultural heritage, and convenient access to services, making it ideal for residents who prioritize history and city life over beach proximity. Prices of $1,000-$1,500 per square meter provide reasonable value for urban living standards.
Bwejuu and Michamvi represent emerging areas offering peaceful environments at budget-friendly prices, appealing to residents seeking tranquility and potential appreciation as these areas develop further infrastructure and amenities.
Nungwi and Kendwa command premium prices but offer luxury living with vibrant expat communities and established tourism infrastructure, suitable for residents who prioritize high-end amenities and social activities.
What price per square meter makes financial sense for rental properties in different areas?
Rental investment success in Zanzibar depends more on yield potential than absolute price per square meter, with different strategies suited to various market segments.
Short-term holiday rentals in tourist hotspots like Nungwi, Kendwa, and Paje generate 5-12% annual yields despite higher acquisition costs of $2,400-$2,800+ per square meter. These areas benefit from consistent tourist demand and premium nightly rates.
Long-term rental properties typically yield 4-8% annually and perform best in Stone Town or areas near universities and business centers. Lower acquisition costs of $1,000-$1,500 per square meter can still generate solid returns through stable tenant demand.
Properties in emerging areas like Michamvi and Kizimkazi offer the potential for both rental income and capital appreciation, though investors should factor in infrastructure development timelines and initial lower rental demand.
It's something we develop in our Tanzania property pack.
Which areas or property types are most promising for buy-to-resell profits?
Zanzibar's appreciation potential varies dramatically by location, with emerging areas and luxury beachfront properties showing the strongest growth prospects.
Up-and-coming areas including Michamvi, Kizimkazi, and budget-friendly neighborhoods offer the highest potential returns for buy-to-resell strategies. These areas benefit from infrastructure development and growing tourist interest while maintaining relatively affordable entry prices.
Luxury beachfront properties in established areas like Nungwi show annual appreciation rates up to 20%, driven by limited supply and consistent high-end demand from international buyers and tourism operators.
Stable mature markets in Stone Town and central Nungwi provide more predictable but moderate appreciation, appealing to investors seeking lower-risk capital gains with established market fundamentals.
Properties near planned infrastructure projects or tourism developments typically outperform market averages, making research into government development plans essential for identifying emerging opportunities.
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.
What's an example purchase price per square meter in Stone Town versus luxury and budget areas?
| Area Type | Specific Location | Price per sqm (USD) |
|---|---|---|
| Heritage Urban | Stone Town | $1,000-$3,700 |
| Luxury Beachfront | Nungwi/Kendwa | $2,400-$2,800+ |
| Mid-range Beach | Jambiani | $45-$60 (land) |
| Budget Inland | Inland Residential | $20-$35 (land) |
| Agricultural | Central Farmland | $6-$12 (land) |
Which areas are most expensive, up-and-coming, and budget-friendly in terms of cost per square meter?
Zanzibar's property market clearly segments into distinct price categories based on location, development level, and tourism infrastructure.
The most expensive areas include Stone Town's heritage properties, beachfront Nungwi, and Kendwa, where premium locations and established tourism infrastructure command top prices. These areas benefit from proven track records and consistent demand from both investors and end users.
Up-and-coming areas showing strong growth potential include Michamvi, Kizimkazi, and Makunduchi. These locations offer lower entry costs while benefiting from improving infrastructure and growing tourist interest, making them attractive for investors seeking appreciation potential.
Budget-friendly options include central farmland, inland residential zones, and some eastern and southern beach areas that haven't yet developed significant tourism infrastructure. These areas appeal to long-term investors and those seeking affordable entry into the Zanzibar market.
The price gap between expensive and budget areas reflects infrastructure development, beach access, and established tourism amenities, with luxury beachfront commanding 20-50 times the price of inland farmland per square meter.
How have average prices per square meter changed compared to one and five years ago?
Zanzibar's property market has shown consistent growth over both short and long-term periods, with acceleration in premium segments driven by tourism recovery and infrastructure development.
Over the past year (2024-2025), overall property prices have increased 5-7% across most market segments, reflecting steady economic growth and continued tourism development. This growth rate represents sustainable appreciation without speculative bubble conditions.
Looking back five years to 2019, beachfront land has increased from $18-24 per square meter to current levels of $23-35 per square meter, representing significant appreciation in coastal areas. Luxury properties in hotspots have experienced annual gains up to 20% in some premium zones.
It's something we develop in our Tanzania property pack.
The price appreciation reflects several factors including improved infrastructure, growing international awareness of Zanzibar as an investment destination, and limited supply of premium beachfront properties. These fundamentals support continued growth expectations.
What are realistic forecasts for price per square meter over the next 1, 5, and 10 years?
Zanzibar's property market outlook remains positive across all time horizons, supported by tourism growth, infrastructure development, and increasing international recognition as an investment destination.
Over the next year, expect 5-7% price increases led by continued tourism recovery and infrastructure improvements. Government investment in ports, airports, and road networks should support this growth trajectory through improved accessibility and economic development.
The next five years could see coastal and luxury properties achieve 10-15% annual gains if tourism growth continues at current rates. This projection assumes continued political stability, infrastructure investment, and growing international tourism demand for East African destinations.
Over the next decade, Zanzibar prices may catch up to established Indian Ocean destinations like Mauritius and Seychelles if current investment inflows and tourism development continue. This would represent substantial appreciation from current levels while maintaining affordability advantages over more established markets.
These forecasts depend on continued economic stability, infrastructure development, and tourism growth, making Zanzibar an attractive long-term investment destination for investors seeking emerging market exposure with growth potential.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Zanzibar's property market offers compelling opportunities across diverse price ranges, from $6 per square meter farmland to $3,700 per square meter luxury beachfront properties.
The market's 5-7% annual growth, strong tourism fundamentals, and emerging area potential make it attractive for both residents and investors seeking African market exposure with growth potential.
Sources
- Vela Zanzibar Property Investment Statistics
- TheAfricanVestor Tanzania House Prices
- Vela Zanzibar Real Estate Market Outlook
- TheAfricanVestor Foreigners Buy Land Zanzibar
- TheAfricanVestor Zanzibar Price Forecasts
- Vela Zanzibar Foreigners Guide
- Bank of Tanzania Press Release
- TheAfricanVestor Zanzibar Property