Authored by the expert who managed and guided the team behind the Tanzania Property Pack
Everything you need to know before buying real estate is included in our Republic of the Congo Property Pack
If you're thinking about buying property in Zanzibar, you're probably wondering whether now is a good time or if you should wait for prices to drop.
We get it, and that's exactly what we'll cover here with current housing prices in Zanzibar and real data to help you decide.
We constantly update this blog post with fresh numbers and new market insights so you always have the latest picture.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Zanzibar.
So, is now a good time?
Rather yes, January 2026 looks like a reasonable time to buy property in Zanzibar because the fundamentals are solid and a crash is unlikely.
The strongest signal is that Zanzibar recorded over 743,000 international tourist arrivals by October 2025, breaking all previous annual records with two months still to go, which directly supports rental demand and property values.
Another strong signal is that new housing supply remains very limited, with only 600 to 800 investment-grade units expected through 2026, while the island has an estimated housing gap of 60,000 units.
Other signals include stable macroeconomic conditions in Tanzania with inflation around 3%, the Bank of Tanzania holding its benchmark rate at 5.75%, and ongoing infrastructure upgrades at the airport and roads that improve accessibility.
The best strategy is likely buying a beachfront villa or apartment in prime coastal areas like Nungwi, Paje, or Matemwe for short-term rentals, or a heritage property in Stone Town for long-term appreciation, with gross rental yields of 8 to 15% possible in well-managed properties.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research and consult professionals before making any property purchase.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
Is it smart to buy now in Zanzibar, or should I wait as of 2026?
Do real estate prices look too high in Zanzibar as of 2026?
As of early 2026, property prices in Zanzibar appear high but explainable given the strong tourism demand, limited supply, and ongoing infrastructure improvements supporting the market.
One signal that prices may be stretched in some segments is that luxury beachfront properties have seen 10 to 15% annual appreciation recently, and some short-term rental markets have reportedly seen rate reductions of up to 50% over the past two years as more properties entered the market.
However, the limited pipeline of only 600 to 800 new investment-grade units through 2026 against an estimated 60,000-unit housing shortage suggests that genuine scarcity still supports prices in most locations, so if a property in Zanzibar can realistically achieve a gross yield of 5 to 8%, it's likely fairly priced rather than overpriced.
You can also read our latest update regarding the housing prices in Zanzibar.
Does a property price drop look likely in Zanzibar as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Zanzibar over the next 12 months is low, because demand drivers remain strong and credit conditions are stable.
A plausible range for Zanzibar property prices over the next 12 months is somewhere between minus 5% in an oversupplied luxury segment and plus 12% in prime beachfront locations, with most areas likely seeing 5 to 8% growth.
The single most important factor that could increase the odds of a price drop in Zanzibar would be a sharp tourism shock, such as a major global travel disruption or a sudden drop in European visitors who make up the largest source market.
This factor appears unlikely in the near term given that tourism arrivals hit record levels in 2025 and airlines like Emirates and Qatar Airways are actually expanding their Zanzibar routes.
Finally, please note that we cover the price trends for next year in our pack about the property market in Zanzibar.
Could property prices jump again in Zanzibar as of 2026?
As of early 2026, there is a medium to high likelihood that property prices could jump again in Zanzibar within the next 12 months, particularly in prime beachfront areas where scarcity is real.
A plausible upside range for Zanzibar property prices over the next 12 months is 6 to 12% for prime coastal villas and condos, 5 to 10% for Stone Town heritage properties, and 3 to 7% for generic urban apartments.
The single biggest demand-side trigger that could drive prices higher in Zanzibar is continued expansion of direct international flights, because better connectivity from Europe and the Gulf directly translates into more tourist visitors and more investor interest in vacation rental properties.
Please also note that we regularly publish and update real estate price forecasts for Zanzibar here.
Are we in a buyer or a seller market in Zanzibar as of 2026?
As of early 2026, Zanzibar is a split market where sellers have the advantage in Stone Town and prime beachfront locations like Nungwi and Paje, while buyers have more leverage in new-build developments and areas with similar competing units.
Zanzibar does not publish a formal months-of-inventory figure, but based on how quickly clean-title properties move in prime areas (typically 2 to 6 months) versus generic stock (4 to 10 months), the effective supply in sought-after locations is tight enough to favor sellers.
In new-build and planned community markets like Fumba Town and similar developments, buyers can often negotiate 7 to 15% off asking prices or receive incentives like furnishing packages and payment plans, which shows that seller leverage is weaker in these segments.
We have made this infographic to give you a quick and clear snapshot of the property market in Tanzania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Zanzibar as of 2026?
Are homes overpriced versus rents or versus incomes in Zanzibar as of 2026?
As of early 2026, homes in Zanzibar appear fairly priced when compared to achievable rental income in prime locations, but they are expensive relative to local incomes since most prime properties are priced for international buyers and higher-income locals.
A typical Zanzibar price-to-rent ratio in prime beachfront and Stone Town locations works out to roughly 12 to 15 years of gross rent to equal the purchase price, which is reasonable for a tourism-driven market where short-term rental yields of 8 to 15% are achievable with good management.
However, the price-to-income multiple is very high for average Tanzanian households, as even the average mortgage debt size of around 118 million Tanzanian shillings (about 45,000 USD) with mortgage rates of 13 to 19% creates monthly payments that only higher-income buyers can afford.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Zanzibar.
Are home prices above the long-term average in Zanzibar as of 2026?
As of early 2026, property prices in Zanzibar are estimated to be 30 to 60% above pre-2020 levels in nominal terms, and roughly 15 to 35% higher in inflation-adjusted terms, with prime beachfront areas at the higher end of that range.
The recent 12-month price change in Zanzibar has been roughly 5 to 10% depending on the segment, which is slightly faster than the typical pre-pandemic pace of 5 to 7% and reflects continued strong tourism demand and limited new supply.
In inflation-adjusted terms, Zanzibar prices in prime areas are likely above their prior cycle peak because the tourism boom, infrastructure investments, and international buyer interest have all accelerated in the past few years.
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What local changes could move prices in Zanzibar as of 2026?
Are big infrastructure projects coming to Zanzibar as of 2026?
As of early 2026, the biggest infrastructure project affecting Zanzibar property prices is the ongoing expansion of Abeid Amani Karume International Airport, which has already helped boost passenger numbers from 840,000 in 2020 to a projected 2.8 million in 2025 and supports higher property values in accessible areas.
The airport expansion includes a new Terminal 2 scheduled for completion in 2026, along with VVIP and private jet facility upgrades completed in 2025, and these improvements are expected to add 3 to 8% extra price appreciation to neighborhoods with good airport access over the next couple of years.
For the latest updates on the local projects, you can read our property market analysis about Zanzibar here.
Are zoning or building rules changing in Zanzibar as of 2026?
The most important zoning constraint in Zanzibar is not a new rule change but the existing Stone Town Conservation and Development Authority guidelines, which strictly limit what can be built or renovated in the UNESCO heritage zone and effectively cap supply in the most desirable historic area.
As of early 2026, these heritage constraints continue to support prices in Stone Town by preventing oversupply, while expansion areas like the Fumba corridor and the north coast can add new units more freely, meaning prices in Stone Town are less likely to drop from new competition.
The areas most affected by building constraints in Zanzibar are Stone Town itself and immediate surrounding neighborhoods like Ng'ambo and Mtoni, where any renovation or new construction requires STCDA approval and must comply with heritage design guidelines.
Are foreign-buyer or mortgage rules changing in Zanzibar as of 2026?
As of early 2026, foreign-buyer rules in Zanzibar remain stable and allow foreigners to purchase property through 99-year renewable leaseholds via ZIPA registration, though the approval process adds some transaction friction that can affect liquidity.
The most relevant foreign-buyer consideration in Zanzibar is the investment framework administered by ZIPA, where the 2025 Investment Regulations spell out approval steps and compliance requirements that buyers must follow to ensure their property rights are properly registered and transferable.
On the mortgage side, interest rates in Tanzania remain relatively high at 13 to 19% for residential mortgages, which naturally limits how much local credit can fuel price increases, though the mortgage market has been growing at around 11% year over year according to Bank of Tanzania data.
You can also read our latest update about mortgage and interest rates in Tanzania.
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.
Will it be easy to find tenants in Zanzibar as of 2026?
Is the renter pool growing faster than new supply in Zanzibar as of 2026?
As of early 2026, the renter pool in Zanzibar appears to be growing faster than new rental supply, especially in tourism-driven areas where visitor arrivals hit record levels in 2025 while only 600 to 800 new units are expected to complete through 2026.
The clearest demand signal is the record-breaking tourism arrivals, with over 743,000 international visitors by October 2025 representing an 11% increase over the previous year, which directly translates into short-term rental demand in coastal areas and Stone Town.
On the supply side, new completions in Zanzibar remain limited because of land constraints, heritage regulations in Stone Town, and the relatively small scale of planned developments, meaning that absorption of new units should remain healthy in well-located properties.
Are days-on-market for rentals falling in Zanzibar as of 2026?
As of early 2026, days-on-market for rentals in Zanzibar prime areas are estimated to be low, with well-priced and well-furnished units in Stone Town, Nungwi, Paje, and Matemwe typically finding tenants or achieving stable booking momentum within 15 to 35 days.
The difference between best areas and weaker areas in Zanzibar is significant, with generic stock in non-prime locations often taking 30 to 70 days to rent, while beachfront properties in tourist hotspots can fill almost immediately during peak season.
The main reason days-on-market stays low in prime Zanzibar locations is the combination of strong tourism demand and genuinely limited supply of quality, properly permitted rental units with reliable utilities and good management.
Are vacancies dropping in the best areas of Zanzibar as of 2026?
As of early 2026, vacancy rates in Zanzibar's best rental areas like Stone Town, Nungwi, Kendwa, Paje, and Matemwe beachfront are estimated to be low at around 5 to 10%, with the tightest conditions in top-tier furnished properties during the high season from June through September.
These best areas typically show vacancy rates 5 to 10 percentage points lower than the overall market, where generic urban apartments and properties in areas with competing new-build inventory may experience 10 to 18% vacancy during absorption phases.
One practical sign that Zanzibar's best areas are tightening is that property managers in Nungwi and Paje report being able to increase nightly rates during peak season without losing occupancy, which shows demand is outpacing available quality supply.
By the way, we've written a blog article detailing what are the current rent levels in Zanzibar.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Zanzibar as of 2026?
Is for-sale inventory shrinking in Zanzibar as of 2026?
As of early 2026, we cannot provide a precise year-over-year change in for-sale inventory for Zanzibar because there is no centralized MLS-style database, but agents report that clean-title, properly documented properties in prime locations remain scarce relative to buyer interest.
The effective months-of-supply in Zanzibar varies dramatically by segment, with prime beachfront and Stone Town heritage properties estimated at 3 to 6 months (a seller's market), while new-build condos in expansion areas may have 8 to 12 months of supply (more balanced).
The main reason inventory feels tight in desirable locations is that many owners are not motivated to sell because they're earning good rental income, and the legal process of properly documenting transfers through ZIPA adds friction that slows turnover.
Are homes selling faster in Zanzibar as of 2026?
As of early 2026, the estimated median time-to-sell for homes in Zanzibar is around 2 to 6 months for clean, well-priced properties in prime locations and 4 to 10 months for generic urban stock, with properly documented beachfront properties generally moving faster than a year ago due to strong demand.
Compared to the previous year, selling times in Zanzibar's prime segments appear to have shortened slightly as tourism success and infrastructure improvements have attracted more buyer interest, though generic stock in less desirable locations has not seen the same acceleration.
Are new listings slowing down in Zanzibar as of 2026?
As of early 2026, we are not confident in providing a precise year-over-year change in new for-sale listings for Zanzibar because the market lacks centralized listing data, but the pattern appears lumpy rather than uniformly slowing, with spikes when development phases complete.
Zanzibar does not have a strong seasonal listing pattern like cold-climate markets, but new listings tend to increase when major developments like Fumba Town release new phases or when estate sales create sudden inventory, rather than following a predictable annual cycle.
Is new construction failing to keep up in Zanzibar as of 2026?
As of early 2026, new construction in Zanzibar is clearly failing to keep up with demand, as the estimated pipeline of 600 to 800 investment-grade units through 2026 barely dents the island's approximately 60,000-unit housing gap.
Recent trends show some increase in construction activity, with government projects like the Chumbuni megaproject (3,000 units planned, with Phase 1 of 1,095 units mobilized) and private developments like Fumba Town adding supply, but the volumes remain modest relative to the need.
The biggest bottleneck limiting new construction in Zanzibar is the combination of limited developable coastal land, heritage restrictions in Stone Town that prevent densification, and the relatively high cost of building materials and skilled labor on the island.
We made this infographic to show you how property prices in Tanzania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Zanzibar as of 2026?
Is resale liquidity strong enough in Zanzibar as of 2026?
As of early 2026, resale liquidity in Zanzibar is moderate to good for properties with clean documentation, strong locations, and mainstream appeal, but weaker for unique or oversized properties and units in areas with competing new-build inventory.
The estimated median days-on-market for resale homes in Zanzibar is around 3 to 6 months for prime locations with proper title, which is longer than you would see in a highly liquid market like Nairobi or Dar es Salaam but acceptable for an island destination with a niche buyer pool.
The property characteristic that most improves resale liquidity in Zanzibar is having clean, properly registered rights through the ZIPA framework and the Land Registry, because buyers and their lawyers will prioritize documented properties over those with unclear or incomplete title history.
Is selling time getting longer in Zanzibar as of 2026?
As of early 2026, selling time in Zanzibar appears stable or slightly shorter in prime segments compared to a year ago, though properties in oversupplied new-build corridors may take longer to sell as buyers have more options to compare.
The current median days-on-market in Zanzibar ranges from around 60 days for well-priced beachfront properties to 180 days or more for generic stock, with most properly documented properties in decent locations selling within 3 to 6 months.
One clear reason selling time can lengthen in Zanzibar is if sellers price based on peak-season rental income expectations that don't reflect year-round reality, causing buyers to wait rather than pay an inflated price.
Is it realistic to exit with profit in Zanzibar as of 2026?
As of early 2026, the likelihood of selling with a profit in Zanzibar is medium to high if you buy in the right location, hold for at least 3 to 5 years, and ensure clean documentation from the start.
The estimated minimum holding period in Zanzibar that makes exiting with profit realistic is around 3 years for prime beachfront and Stone Town properties where 5 to 10% annual appreciation is plausible, though 5 to 7 years gives a better cushion against transaction costs and market timing.
Total round-trip costs in Zanzibar, including legal fees, stamp duty, agent commissions, and ZIPA-related expenses, typically run around 8 to 12% of the property value, which is approximately 24,000 to 36,000 USD on a 300,000 USD property or roughly 22,000 to 33,000 EUR.
The factor that most increases profit odds in Zanzibar is buying a property with clean title in a location that benefits from genuine scarcity, such as true beachfront or Stone Town heritage, rather than a new-build unit with many near-identical competitors.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Zanzibar, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
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 authoritative | How we used it |
|---|---|---|
| Office of the Chief Government Statistician Zanzibar | Official statistics office for Zanzibar under the Revolutionary Government. | We used it to track tourism arrivals, population growth, and inflation data. We also validated demand pressure indicators against their official releases. |
| Bank of Tanzania | Tanzania's central bank publishing official monetary and financial data. | We used it to anchor lending rates, mortgage market size, and credit conditions. We also checked interest rate trends to assess affordability and financing risk. |
| Tanzania Mortgage Refinance Company | National mortgage refinance institution used by lenders and policymakers. | We used it to verify mortgage rates, average loan sizes, and market growth figures. We also referenced their data to understand typical buyer financing constraints. |
| International Monetary Fund | Top-tier international macro authority with standardized country analysis. | We used the Tanzania Article IV report to validate GDP growth, inflation, and macro risk context. We triangulated IMF assessments with local data sources. |
| World Bank Tanzania | Leading development institution with consistent economic analysis methods. | We used it to cross-check growth drivers like construction and tourism. We also referenced housing shortage estimates and infrastructure assessments. |
| Zanzibar Investment Promotion Authority | Official authority administering Zanzibar's investment framework. | We used it to understand foreign buyer approval processes and regulations. We also assessed how policy friction affects transaction liquidity. |
| Zanzibar Land Tribunals | Official source for land tenure legislation and legal framework. | We used the Land Tenure Act to explain ownership structures and title quality. We referenced it to separate legal reality from market rumors. |
| Stone Town Conservation Authority | Official authority managing heritage conservation in Stone Town. | We used their guidelines to explain supply constraints in the UNESCO zone. We analyzed how conservation rules support scarcity and price stability. |
| Fumba Town | Major planned development publicly disclosing scale and phasing. | We used it as a proxy for new supply in the urban west corridor. We tracked their phases to estimate inventory additions and absorption timing. |
| Zanzibar Airports Authority | Government agency managing airport infrastructure and passenger data. | We used it to track passenger growth and infrastructure timelines. We connected airport expansion to accessibility improvements affecting property values. |
| The Citizen Tanzania | Major Tanzanian newspaper with reliable local reporting. | We used it to verify infrastructure announcements and tourism milestones. We cross-referenced their reporting with official government data. |
| TanzaniaInvest | Business news platform focused on Tanzanian investment and economy. | We used it to track mortgage market updates and construction sector news. We verified their figures against Bank of Tanzania primary sources. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Tanzania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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