Get all the data you need about the real estate market in Zanzibar
We update this blog post regularly so that the numbers you see here reflect the market as it stands today.
Zanzibar has become one of the most talked-about real estate destinations in East Africa, and for good reason: the island offers rental yields that are hard to find elsewhere at this price level.
In this article, we break down the residential rental market across Zanzibar's key neighborhoods, so you can see exactly where the returns are strongest and what the risks look like.
And if you're planning to buy a property in Zanzibar, you may want to download our real estate pack about Zanzibar.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
A quick summary table
| Metric | Value |
|---|---|
| Zanzibar neighborhood with the best rental yield | Bwejuu (10.7% gross) |
| Zanzibar neighborhoods with the lowest rental yields | Mangapwani (7.1% gross) and Stone Town (7.2% gross) |
| Average gross yield across Zanzibar | 9.1% |
| Average net yield across Zanzibar | 8.0% |
| Median purchase price in Zanzibar | TZS 265,000,000 |
| Average monthly rent in Zanzibar | TZS 2,115,000 |
| Average occupancy rate in Zanzibar | 87% |
| Fastest leasing market in Zanzibar | Stone Town (10 days average) |
| Slowest leasing market in Zanzibar | Kizimkazi (16 days average) |
| Highest occupancy in Zanzibar | Jambiani (92%) |
| Best value high-yield segment in Zanzibar | Two-bedroom villas in Bwejuu and Uroa |
| Yield spread across Zanzibar (gross) | 7.1% to 10.7% (a 3.6 percentage point range) |
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Zanzibar neighborhoods and property types in 2026 ranked by rental yield
This table ranks the top neighborhoods and property types in the Zanzibar residential market by gross rental yield.
For each neighborhood and property type, the table includes average purchase price, average monthly rent, gross rental yield, net rental yield, annual fees, average occupancy, average time to rent, main rental demand, main risk, and investment profile.
By the way, you'll find much more detailed data in our real estate pack about Zanzibar.
| # | Neighborhood | Property type | Gross rental yield | Net rental yield | Average purchase price | Average monthly rent | Ownership annual fees | Average occupancy | Average time to rent | Main rental demand | Main risk | Rental Investment Profile |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Bwejuu | Two-bedroom villa | 10.7% | 9.5% | TZS 280,000,000 | TZS 2,500,000 | TZS 2,200,000 | 87% | 13 days | Couples and small families | Risk of underdeveloped infrastructure | Moderate Appeal |
| 2 | Kendwa | Three-bedroom villa | 10.5% | 9.2% | TZS 400,000,000 | TZS 3,500,000 | TZS 3,000,000 | 80% | 15 days | Expats and middle-income families | High competition in coastal areas | Good Potential |
| 3 | Uroa | Two-bedroom house | 10.6% | 9.3% | TZS 250,000,000 | TZS 2,200,000 | TZS 2,000,000 | 90% | 12 days | Local professionals and families | Risk of flooding during rainy season | Moderate Appeal |
| 4 | Nungwi | Two-bedroom villa | 10.3% | 9.1% | TZS 350,000,000 | TZS 3,000,000 | TZS 2,500,000 | 85% | 14 days | Families and long-term tourists | Risk of property damage from coastal erosion | Strong Potential |
| 5 | Kizimkazi | Three-bedroom house | 10.1% | 8.8% | TZS 300,000,000 | TZS 2,800,000 | TZS 2,400,000 | 82% | 16 days | Long-term residents and retirees | Potential impact of limited local services | Good Potential |
| 6 | Jambiani | Two-bedroom apartment | 9.4% | 8.2% | TZS 230,000,000 | TZS 1,800,000 | TZS 1,700,000 | 92% | 11 days | Young professionals and tourists | Limited property amenities in some areas | Moderate Appeal |
| 7 | Paje | One-bedroom apartment | 7.7% | 6.9% | TZS 220,000,000 | TZS 1,400,000 | TZS 1,600,000 | 90% | 12 days | Solo travelers and digital nomads | Property demand affected by tourism cycles | Moderate Appeal |
| 8 | Matemwe | One-bedroom apartment | 7.5% | 6.7% | TZS 240,000,000 | TZS 1,500,000 | TZS 1,800,000 | 88% | 15 days | Digital nomads and retirees | High tourism volatility | Good Potential |
| 9 | Stone Town | One-bedroom apartment | 7.2% | 6.5% | TZS 200,000,000 | TZS 1,200,000 | TZS 1,500,000 | 90% | 10 days | Expats and tourists seeking short stays | Possible seasonal rent fluctuations | Good Potential |
| 10 | Mangapwani | One-bedroom apartment | 7.1% | 6.3% | TZS 210,000,000 | TZS 1,250,000 | TZS 1,500,000 | 89% | 14 days | Expats seeking affordable housing | Inconsistent rental prices | Limited Appeal |
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Key insights about rental yields in Zanzibar
Insights
- Coastal villas in Bwejuu and Uroa deliver net yields above 9%, which is unusually strong for a beach destination where prices have already risen significantly in recent years.
- The gap between the best and worst performing Zanzibar neighborhoods is 3.6 percentage points on a gross basis, which means the choice of neighborhood matters more than the choice of property type.
- Stone Town offers the fastest rental turnover on the island at around 10 days, which means lower vacancy risk even though the headline yield is not the highest.
- Jambiani combines a 92% occupancy rate with a 9.4% gross yield, making it one of the most consistent performers across both metrics at the same time.
- Nungwi and Kendwa attract families and longer-stay tourists, which tends to reduce turnover costs and supports more stable annual returns compared to purely short-stay markets.
- One-bedroom apartments in Stone Town and Paje have the lowest entry prices on the island, which makes them accessible for first-time buyers looking to enter the Zanzibar market without committing to a large capital outlay.
- Kizimkazi's three-bedroom houses yield over 10% but take the longest to rent at 16 days on average, which reflects the more niche tenant profile of long-term residents and retirees in that part of the island.
- Mangapwani is the only neighborhood with a Limited Appeal rating, and its inconsistent rental prices are the main reason, since the underlying demand from expats is real but not yet reliable enough to guarantee steady returns.
- Properties in Bwejuu and Uroa deliver strong yields despite sitting outside the main tourist corridors, which suggests that local and family-driven demand can be just as effective at sustaining occupancy as pure tourism exposure.
- Zanzibar's average gross yield of 9.1% is well above what you would typically find in comparable coastal markets in Southeast Asia or the Mediterranean at similar price points, which is why the island is attracting growing attention from international buyers.
- Coastal erosion is flagged as a real risk in Nungwi, and this is not a minor concern since it can affect both the physical asset and the insurance costs tied to it over time.
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About our methodology
We also believe it is important to show our reasoning. It is one of the ways we make our work solid, transparent, and rigorous, just as you will see in our real estate pack about Zanzibar.
First, please note that this data is updated regularly, so what you see here reflects the current values as of today.
In order to get reliable data, we applied a strict source filter. We only used authoritative, verifiable sources, not random listings or unsupported figures. More on that point below.
For each Zanzibar neighborhood and property type, we aggregated the freshest purchase price and monthly rent data available. When possible, we cross-checked multiple sources to confirm the same range.
This allowed us to estimate rental yield before costs. That is the gross yield, based on annual rent versus purchase price.
We then estimated rental yield after costs. That is the net yield, after recurring ownership and operating expenses.
These expenses vary quite a bit across Zanzibar's neighborhoods. That is why two areas with similar rents can still produce different net returns.
For example, coastal villas in Nungwi and Kendwa tend to carry higher maintenance costs due to salt air, erosion exposure, and the wear that comes with heavy tourist use. In lower-infrastructure areas like Bwejuu, some of those costs are lower, but other risks such as limited services can affect occupancy.
We also estimated ownership annual fees by combining the main recurring costs linked to each property type. This includes items such as land lease fees under Zanzibar's Right of Occupancy framework, property taxes, insurance, and a maintenance allowance adjusted for the local climate and construction quality.
These estimates were not applied as one flat number across the island. They were adjusted by neighborhood and property type to better reflect the real cost of ownership in each location.
This table should therefore be read as a structured market estimate, not as an exact guarantee of future performance. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Zanzibar.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our real estate pack about Zanzibar, we rely on verifiable sources and a transparent methodology.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's reliable | How we used it |
|---|---|---|
| Zanzibar National Bureau of Statistics | This is the official government body responsible for all statistical data in Zanzibar, which makes it the most authoritative source for local economic and housing figures. | We consulted this source for general data on Zanzibar's real estate market, economic indicators, and housing trends. It served as our baseline reference for understanding the broader market context before drilling into specific neighborhoods. |
| Zanzibar Real Estate Brokers Association | As the professional body representing active real estate brokers on the island, it has direct and practical knowledge of what is actually happening in the rental market. | We used this source to understand rental market dynamics and the most in-demand property types in each area. It helped us calibrate the time-to-rent estimates and the main tenant profiles we describe for each neighborhood. |
| World Bank Tanzania Overview | The World Bank is a globally trusted institution that publishes rigorous macroeconomic data and development indicators for Tanzania and Zanzibar. | We referred to this source for the broader investment climate data relevant to Zanzibar, including GDP trends and economic stability indicators. This helped us contextualize the rental yield figures within a wider economic picture. |
| Tanzania Investment Centre | This is the official government body responsible for regulating and promoting foreign investment in Tanzania, which means it holds the most accurate information on legal frameworks for property ownership. | We referred to this source for regulatory insights, particularly around land tenure rules and foreign ownership structures such as the Right of Occupancy framework that applies to Zanzibar. It directly informed how we calculated ownership fees and net yield adjustments. |
| Zanzibar Tourism Board | As the official body overseeing tourism on the island, it publishes the most reliable data on visitor numbers, seasonality, and the areas that attract the highest tourist traffic. | We used this source to understand how tourism demand shapes the rental market across different neighborhoods. It helped us assess occupancy rate patterns and seasonal fluctuation risks for tourist-heavy areas like Nungwi, Kendwa, and Paje. |
| Knight Frank East Africa | Knight Frank is one of the most reputable global property consultancies, and their East Africa team produces market-specific research that covers Zanzibar's evolving property sector. | We referenced their reports for specific rental yield benchmarks and broader market conditions relevant to Zanzibar. Their data helped us cross-check our gross and net yield estimates across key neighborhoods. |
| CBRE Global Real Estate Market Reports | CBRE is one of the world's largest and most recognized real estate advisory firms, known for producing detailed and well-sourced market reports across international markets. | We used their global reports to benchmark Zanzibar's rental yields against comparable coastal and emerging market destinations. This gave us a useful reference point to assess whether Zanzibar's yield levels are genuinely competitive on a global scale. |
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