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Property prices in Zanzibar range from $50,000 for basic apartments to over $2 million for luxury beachfront estates as of September 2025.
Stone Town heritage apartments average $3,700 per square meter, while coastal beachfront plots command $23-$35 per square meter in prime tourist areas. The market has grown 5-7% annually, with beachfront properties seeing 10-15% increases in the past year alone.
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Zanzibar's property market offers diverse opportunities from $50,000 studio apartments to $2M+ luxury villas, with coastal areas commanding premium prices.
Stone Town averages $3,700/m² while beachfront plots range $23-$35/m², making it an attractive investment destination with 5-7% annual growth.
| Property Type | Price Range (USD) | Average Price per m² |
|---|---|---|
| Studio/1-bed apartments | $50,000 - $120,000 | $1,100 - $3,700 |
| 2-bed apartments | $90,000 - $160,000 | $1,100 - $3,700 |
| 3-bed villas | $285,000 - $600,000 | $200 - $500 |
| Luxury beachfront villas | $600,000 - $2M+ | $300 - $600 |
| Small land plots | $85,000 - $200,000 | $23 - $35 |
| Large beachfront plots | $500,000 - $2.6M | $35 - $450 |
| Stone Town heritage | $150,000 - $500,000 | $3,700 - $6,700 |
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the typical price ranges for different property types in Zanzibar today?
Zanzibar's residential property market offers clear price tiers across different property categories as of September 2025.
Studio and one-bedroom apartments range from $50,000 to $120,000, making them the most accessible entry point for buyers. Two-bedroom apartments command $90,000 to $160,000, while three-bedroom villas span $285,000 to $600,000.
Luxury beachfront villas and estates represent the premium segment, starting at $600,000 and extending beyond $2 million for exceptional properties. Land purchases offer significant variation, with small plots ranging $85,000 to $200,000, while large beachfront plots command $500,000 to $2.6 million.
Beachfront homes occupy the middle-to-upper market tier, typically priced between $300,000 and $1 million depending on location and amenities.
It's something we develop in our Tanzania property pack.
How do property prices vary across different areas of Zanzibar?
Location significantly impacts property values across Zanzibar's diverse neighborhoods and coastal areas.
Stone Town commands premium prices as the historic urban center, with prime city apartments averaging $3,700 per square meter. Heritage new-build condos in Stone Town reach $6,700 per square meter, reflecting the area's cultural significance and tourism appeal.
Coastal resort areas including Nungwi, Paje, Bwejuu, and Jambiani represent the high-value beachfront market. These areas see beachfront plots priced at $23 to $35 per square meter for standard locations, with premium waterfront sites occasionally exceeding $450 per square meter. Beachfront villas in these areas start at $325,000 and can reach $2 million or more.
Inland villages and developing areas offer the most affordable options, with villas and homes starting around $80,000 for two-bedroom properties in emerging neighborhoods. Rural properties generally range from $50,000 to $200,000, providing opportunities for budget-conscious buyers.
What is the average price per square meter for these property types and areas?
| Area/Property Type | Price per m² (USD) | Market Segment |
|---|---|---|
| Stone Town apartments | $3,700 | Urban premium |
| Stone Town heritage units | $6,700+ | Ultra-premium |
| Suburban apartments | $1,100 | Standard residential |
| Coastal plots (prime areas) | $23 - $35 | Beachfront standard |
| High-end beachfront sites | $450 | Ultra-premium coastal |
| Nungwi/Paje villas | $200 - $500 | Completed beachfront property |
| Inland/rural areas | $50 - $150 | Budget/emerging |
What is the total purchase cost including fees, taxes, and buyer's costs in Zanzibar right now?
Property buyers in Zanzibar must budget for additional costs beyond the advertised purchase price.
Legal fees typically represent 1-2% of the total purchase price, covering contract review and legal representation. Notary and registration fees add another 1.5-2% for document processing and official property registration.
Transfer taxes constitute the largest additional expense at 3-5% of the purchase price, with rates varying for foreign buyers. Optional due diligence and agency fees can add 1-3% if professional services are engaged.
Combined, buyers should expect total additional costs of 5-8% on top of the sticker price. For a $300,000 property, this translates to $15,000-$24,000 in extra expenses that must be factored into the total investment calculation.
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How do financing options and mortgage costs factor into the overall property purchase in Zanzibar?
Financing options for property purchases in Zanzibar remain limited, particularly for international buyers.
Local mortgages are available but present significant challenges for foreign purchasers. Limited banks offer mortgage products, typically requiring 20-30% down payments and charging annual interest rates of 8-12%. The application process can be complex and time-consuming for non-residents.
Most international buyers opt for cash purchases or arrange private financing through offshore loans. This approach eliminates local banking complications but requires substantial liquid capital.
The financing landscape favors buyers with existing capital or established banking relationships in Tanzania. Property investors should factor mortgage limitations into their purchase strategy and consider alternative financing arrangements before committing to specific properties.
If someone wants to live in Zanzibar, what property types and areas offer the best value for purchase?
Lifestyle buyers seeking the best value should focus on mid-range apartments in strategic coastal locations.
Properties in Paje, Bwejuu, and Kiwengwa offer optimal value propositions for residents. These areas provide good infrastructure, active expat communities, and rising property values while maintaining reasonable purchase prices compared to premium locations.
Mid-range apartments in these coastal areas typically cost $90,000-$160,000 for two-bedroom units, providing beach access and community amenities without premium location pricing. The areas have established utilities, internet connectivity, and healthcare access essential for comfortable living.
Rural coastal plots near improving infrastructure, such as Makunduchi and Chwaka, present high potential upside for buyers willing to invest in emerging areas. These locations offer larger properties at lower prices while benefiting from ongoing development initiatives.
It's something we develop in our Tanzania property pack.
If someone wants to rent out short-term, which property types and areas offer the best returns?
Short-term rental investors should target beachfront properties in established tourist hotspots for maximum returns.
Beachfront villas and apartments in Nungwi, Paje, and Jambiani generate gross annual yields of 8-12% due to strong Airbnb and short-stay demand. These areas benefit from consistent tourist traffic and established vacation rental markets.
Studio and one-bedroom apartments represent the highest ROI opportunities for entry-level investors. These properties can command $60-$200 per night during peak seasons while requiring lower initial investments of $50,000-$120,000.
Beachfront villas in prime locations offer substantial rental income potential, with luxury properties commanding premium nightly rates of $300-$800 depending on amenities and direct beach access. The tourism infrastructure in these areas supports year-round rental demand.
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.
If someone wants to rent out long-term, what are the most promising options?
Long-term rental investors should focus on expat-oriented properties in Stone Town and established coastal communities.
Expat-focused apartments in Stone Town and Paje attract reliable long-term tenants at monthly rents of $400-$1,000. These properties benefit from steady demand from international workers, NGO staff, and long-term residents seeking quality accommodations.
Villas in growing expat communities offer good long-let stability with annual yields of 5-7%. These properties typically require higher initial investments but provide consistent rental income with lower tenant turnover costs.
Two and three-bedroom apartments near international schools, healthcare facilities, and business centers command premium long-term rental rates while maintaining high occupancy rates throughout the year.
If someone wants to buy to resell later at a higher price, which areas or property types present the smartest opportunities today?
Capital appreciation investors should target emerging areas with new infrastructure development and eco-friendly projects in growing tourist districts.
- The Tunguu-Makunduchi corridor presents significant flip potential due to planned infrastructure improvements and resort developments
- Up-and-coming beach areas with new road access and utility connections offer substantial upside for early investors
- Eco-tourism and green developments in established tourist areas benefit from growing sustainable tourism trends
- Mixed-use projects combining residential and commercial elements in expanding tourist districts
- Off-plan units in new resort developments scheduled for delivery within 1-2 years provide pre-completion appreciation opportunities
What are some concrete example purchase prices for properties in each of the categories above?
| Property Type | Area | Example Price (USD) |
|---|---|---|
| Studio apartment | Paje | $65,000 |
| 2-bed apartment | Kiwengwa | $115,000 |
| 3-bed villa | Nungwi | $420,000 |
| Luxury beachfront villa | Jambiani | $1,100,000 |
| Central apartment | Stone Town Heritage | $6,700/m² |
| Small inland land | Near Makunduchi | $90,000 |
| Prime beachfront land | Matemwe | $450/m² up to $2M |
How have average property prices in Zanzibar changed compared to one year ago and five years ago?
Zanzibar's property market has experienced consistent growth over both short and medium-term periods.
Over the past year (2024-2025), average property prices increased 5-7% across most categories. Beachfront properties outperformed the general market with increases of 10-15%, driven by growing international tourism and investment demand.
The five-year trend (2020-2025) shows more substantial appreciation. Beach and coastal land prices rose from $18-$24 per square meter in 2019 to $23-$35 per square meter in 2025, representing increases of 30-50%. Apartments and villas appreciated at 5-7% annually, compounding to 28-40% total gains over the five-year period.
This growth reflects Zanzibar's emergence as a regional investment destination, improved infrastructure, and increased tourism development. The market has demonstrated resilience through global economic challenges while maintaining steady appreciation rates.
It's something we develop in our Tanzania property pack.
What are realistic average price forecasts for one year, five years, and ten years ahead?
Market analysts project continued growth for Zanzibar's property sector based on tourism expansion and infrastructure development.
One-year forecasts (mid-2026) predict 5-8% price increases across most property types. This projection reflects ongoing tourism recovery, infrastructure improvements, and sustained international investor interest.
Five-year projections suggest continued annual growth averaging 6-8% for most property categories, with potentially higher appreciation for premium beachfront properties. However, analysts warn of possible oversupply risks in the high-end luxury sector by 2027-2028 if development outpaces tourism growth.
Ten-year forecasts indicate steady appreciation if current tourism trends, infrastructure investment, and government incentives continue. Price performance and yields are expected to remain comparable to or exceed the Kenyan coast, surpass Dar es Salaam, but trail Mauritius for top luxury properties.
Long-term success depends on sustained government support for tourism infrastructure, political stability, and continued international accessibility improvements.
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 price ranges, from $50,000 studio apartments to multi-million dollar beachfront estates.
With 5-7% annual growth and strategic locations showing double-digit appreciation, the market presents attractive prospects for both lifestyle buyers and investors seeking capital appreciation or rental income.
Sources
- TheAfricanvestor - Zanzibar Price Forecasts
- TheAfricanvestor - Zanzibar Property Market
- Vela Zanzibar - Real Estate Market Outlook
- TheAfricanvestor - Tanzania House Prices
- Coldwell Banker Tanzania - Investment 2025
- Vela Zanzibar - Investment Statistics
- Properstar - Zanzibar House Prices
- Real Estate Slovakia - Zanzibar Apartments