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Zanzibar property prices are still moving upward in 2026, but the market is becoming more selective.
In this article, we look at current housing prices in Zanzibar, recent price trends, and where Zanzibar property values may go next.
We constantly update this blog post because the Zanzibar real estate market changes quickly, especially in coastal areas and planned zones like Fumba.
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.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
What are the current property price trends in Zanzibar as of 2026?
As of 2026, Zanzibar residential property prices are rising, but the strongest growth is concentrated in tourist areas, Fumba, and well-documented homes that are easy for foreign buyers to understand.
The simple picture is this: villas near the beach are rising fastest, apartments in Fumba and Zanzibar City are rising steadily, and ordinary inland houses are rising more slowly because local affordability is tighter.
What is the average house price in Zanzibar as of 2026?
As of 2026, the estimated average house price in Zanzibar is about TZS 670 million, or about US$255,000 and €235,000, across common residential property types such as houses, villas, apartments, condos and townhouses.
To make that average easier to understand, the estimated average price per square meter for residential property in Zanzibar in 2026 is about TZS 4.3 million per m², or about US$1,650 and €1,520 per m².
In practice, roughly 80% of normal residential property purchases in Zanzibar in 2026 fall between about TZS 315 million and TZS 2.4 billion, or about US$120,000 to US$900,000 and €110,000 to €830,000.
How much have property prices increased in Zanzibar over the past 12 months?
Zanzibar residential property prices increased by about 9.5% over the past 12 months to June 2026, with the strongest gains in homes that can also work as short-term rentals.
More specifically, Zanzibar apartments and townhouses rose by about 7% to 10%, villas rose by about 10% to 15%, and the best beachfront or rental-ready properties rose by about 15% to 18%.
The biggest reason Zanzibar property prices increased in 2026 is tourism demand, because stronger visitor flows make coastal homes more attractive to both rental investors and lifestyle buyers.
Which neighborhoods have the fastest rising property prices in Zanzibar as of 2026?
As of 2026, the three fastest rising property areas in Zanzibar are Paje, Jambiani and Fumba, because each area has a clear demand story that buyers can understand quickly.
In our June 2026 estimate, annual property price growth is about 14% to 18% in Paje, 12% to 16% in Jambiani, and 11% to 15% in Fumba.
Paje and Jambiani are being pushed by beach lifestyle and kitesurfing demand, while Fumba is being pushed by planned urban growth, new housing supply and better infrastructure.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Zanzibar.
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Which property types are increasing faster in value in Zanzibar as of 2026?
As of 2026, the property types appreciating fastest in Zanzibar are villas first, then condos and apartments, then townhouses, with ordinary standalone houses generally rising more slowly.
The top-performing property type in Zanzibar in 2026 is the compact coastal villa, with annual appreciation usually around 12% to 18% in good areas such as Paje, Jambiani, Nungwi, Kendwa, Matemwe and Pongwe.
Coastal villas are outperforming because one home can serve several buyer needs at once: lifestyle use, holiday rental income, resale appeal and foreign-buyer demand.
Finally, if you’re interested in a specific property type, you will find our latest analyses here:
- How much should you pay for a house in Zanzibar?
- How much should you pay for a villa in Zanzibar?
- How much should you pay for lands in Zanzibar?
What is driving property prices up or down in Zanzibar as of 2026?
As of 2026, the top three factors driving Zanzibar property prices are tourism growth, foreign-buyer demand and the shortage of well-documented homes in prime beach or planned urban locations.
The strongest upward pressure comes from tourism, because tourism directly supports short-let income and indirectly makes Zanzibar real estate more visible to international buyers.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Zanzibar here.
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What is the property price forecast for Zanzibar in 2026?
The Zanzibar property price forecast for 2026 is positive, but it is not the same for every location or property type.
The best homes in strong rental areas should keep rising faster than the market, while overpriced or poorly documented homes may stay on the market longer.
How much are property prices expected to increase in Zanzibar in 2026?
As of 2026, Zanzibar residential property prices are expected to finish the year about 8% to 12% higher than at the start of 2026.
Across different views, a realistic forecast range for Zanzibar property price growth in 2026 is about 4% to 7% for ordinary inland houses and about 12% to 18% for prime coastal villas.
The main assumption behind most Zanzibar property forecasts is that tourism keeps growing, especially from Europe, and that foreign buyers remain willing to pay for clean legal structures and good rental locations.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Zanzibar.
Which neighborhoods will see the highest price growth in Zanzibar in 2026?
As of 2026, the neighborhoods expected to see the highest property price growth in Zanzibar are Paje, Jambiani, Fumba, Matemwe, Pongwe, Uroa, Nungwi and Kendwa.
Our projected 2026 property price growth is about 15% in Paje, 13% in Jambiani, 12% in Fumba, 11% in Matemwe, 10% in Pongwe and Uroa, and 9% in Nungwi and Kendwa.
The main catalyst is different by area: Paje and Jambiani are rental-led, Fumba is infrastructure-led, and Matemwe, Pongwe and Uroa are catch-up markets for buyers priced out of famous beaches.
One emerging area that could surprise in Zanzibar in 2026 is Pongwe, because it is still less expensive than the most famous northern beaches but benefits from rising east-coast attention.
By the way, we’ve written a blog article detailing what are the current best areas to invest in property in Zanzibar.
What property types will appreciate the most in Zanzibar in 2026?
As of 2026, villas are expected to appreciate the most in Zanzibar, especially compact 2-bedroom to 4-bedroom villas with pools near proven beach and rental areas.
The projected appreciation for good coastal villas in Zanzibar in 2026 is about 13% to 18%, with the best outcomes in Paje, Jambiani, Matemwe, Nungwi and Kendwa.
The main demand trend behind this growth is the search for homes that can be used personally for part of the year and rented to tourists for the rest of the year.
Older inland standalone houses are expected to underperform in Zanzibar in 2026 because they depend more on local salaries and less on foreign cash buyers or tourism rental income.
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How will interest rates affect property prices in Zanzibar in 2026?
As of 2026, interest rates should cool local housing demand in Zanzibar, but they are unlikely to stop price growth in tourist and foreign-buyer areas.
The Bank of Tanzania central bank rate is 5.75% for the second quarter of 2026, and mortgage rates in Tanzania are likely to stay expensive for many local households even if inflation remains controlled.
In simple terms, a 1% rise in mortgage rates can reduce property affordability in Zanzibar, but the effect is weaker for villas and foreign-buyer apartments because many of those buyers use cash or foreign savings.
You can also read our latest update about mortgage and interest rates in Tanzania.
What are the biggest risks for property prices in Zanzibar in 2026?
As of 2026, the three biggest risks for Zanzibar property prices are legal and title problems, overpricing in fashionable beach areas, and weaker tourism demand from Europe.
The highest-probability risk is not a general price crash, but a liquidity problem where a buyer owns a nice-looking Zanzibar property that is hard to resell because the lease, access road, utilities or management are weak.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Zanzibar.
Is it a good time to buy a rental property in Zanzibar in 2026?
As of 2026, it is a good time to buy a rental property in Zanzibar only if the property has clean documentation, realistic pricing and a clear rental market.
The strongest argument for buying now is that tourism demand is still growing, which supports rental income in areas such as Paje, Jambiani, Nungwi, Kendwa, Matemwe, Fumba and Stone Town fringe.
The strongest argument for waiting is that some sellers in Zanzibar are already pricing homes as if perfect rental occupancy and perfect infrastructure were guaranteed, which is not always true.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Zanzibar.
You’ll also find a dedicated document about this specific question in our pack about real estate in Zanzibar.
Get to know the market before buying a property in Zanzibar
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Where will property prices be in 5 years in Zanzibar?
What is the 5-year property price forecast for Zanzibar as of 2026?
As of 2026, Zanzibar residential property prices are expected to be about 45% to 65% higher by 2031 in nominal terms, with a central estimate near 55%.
A conservative 5-year forecast for Zanzibar is about 30% to 40% growth, while an optimistic forecast is about 70% or more for the best coastal villas and Fumba homes.
The projected average annual appreciation rate for Zanzibar residential property over the next 5 years is about 7.5% to 10.5%, depending on location, property type and legal quality.
The key assumption behind most 5-year Zanzibar property predictions is that tourism, infrastructure and foreign-buyer access continue to improve without a major legal or macroeconomic shock.
Which areas in Zanzibar will have the best price growth over the next 5 years?
The top three areas expected to have the best property price growth in Zanzibar over the next 5 years are Fumba, Paje and Jambiani.
Projected 5-year cumulative price growth is about 55% to 75% in Fumba, 60% to 85% in Paje, and 55% to 80% in Jambiani.
This is close to the shorter forecast, but Fumba becomes more important over 5 years because infrastructure and planned-town development usually need time to affect daily life and resale prices.
The undervalued area with the best 5-year outperformance potential in Zanzibar is Matemwe, because it still trades below the most famous north-coast areas but has strong beach appeal and improving buyer attention.
What property type will give the best return in Zanzibar over 5 years as of 2026?
As of 2026, compact coastal villas are expected to give the best total return in Zanzibar over 5 years, especially when they have professional rental management and clean legal structure.
The projected 5-year total return for good Zanzibar coastal villas is about 90% to 140% when capital growth and net rental income are both included.
The main structural trend favoring coastal villas is the growth of lifestyle tourism, where visitors and buyers want private space, pools, beach access and the feeling of owning a small retreat.
For a better balance of return and lower risk in Zanzibar, modern apartments and condos in Fumba or Stone Town fringe look safer than villas because they are easier to manage and usually cost less to buy.
How will new infrastructure projects affect property prices in Zanzibar over 5 years?
The three major infrastructure themes expected to affect Zanzibar property prices over the next 5 years are the Fumba Free Economic Zone, airport and road improvements, and port, logistics and urban upgrades around Zanzibar City and Pemba.
In Zanzibar, homes near completed and useful infrastructure can often command a 10% to 25% premium over similar homes in less connected areas, although the premium depends on how visible the improvement is to buyers.
The neighborhoods likely to benefit most are Fumba, Zanzibar City fringe, Ng’ambo, Chukwani, Paje, Jambiani, Matemwe, Pongwe, Uroa and selected Pemba locations near better transport links.
How will population growth and other factors impact property values in Zanzibar in 5 years?
Zanzibar’s population is projected to keep growing through 2031, and that should support property values by increasing demand for serviced homes near jobs, roads, schools, ferry links and the airport.
The demographic shift that matters most for Zanzibar property demand is the growth of young urban households and service-sector workers who need smaller, better-located homes rather than large traditional houses.
Domestic migration toward Zanzibar City, tourism corridors and planned areas, together with international lifestyle migration, should push up values for homes with good access and clear legal structure.
The property types and areas that should benefit most are apartments and condos in Fumba, Zanzibar City fringe and Stone Town fringe, plus compact villas in Paje, Jambiani, Matemwe and Pongwe.
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.
What is the 10 year property price outlook in Zanzibar?
What is the 10-year property price prediction for Zanzibar as of 2026?
As of 2026, Zanzibar residential property prices are expected to be about 115% to 170% higher by 2036 in nominal US-dollar terms, with a central estimate near 140%.
A conservative 10-year forecast for Zanzibar is about 60% to 90% growth for weaker inland homes, while an optimistic forecast is about 180% to 220% for the best coastal villas and selected Fumba properties.
The projected average annual appreciation rate for Zanzibar residential property over the next 10 years is about 6% to 12%, with prime areas likely to stay above ordinary inland areas.
The biggest uncertainty in any 10-year Zanzibar property forecast is regulation, because rules around foreign access, leases, short-term rentals and coastal development can change the market quickly.
What long-term economic factors will shape property prices in Zanzibar?
The top three long-term economic factors shaping Zanzibar property prices are tourism diversification, infrastructure quality and the legal framework for foreign residential investment.
The most positive long-term factor for Zanzibar property values is tourism diversification, because year-round demand would make rental income more stable and support stronger resale prices.
The greatest structural risk is weak infrastructure and environmental pressure, because water, electricity, roads, waste systems and coastal resilience can limit how much some Zanzibar areas can safely grow.
You’ll also find a much more detailed analysis in our pack about real estate in 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 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 we trust it | How we used it |
|---|---|---|
| Office of the Chief Government Statistician Zanzibar, Statistical Abstract 2025 | It is Zanzibar’s official statistical office. | We used it to anchor population, economic, construction and tourism context. We did not treat it as a house-price index. |
| ZANSIS, Zanzibar Statistical Information System | It is the official statistics portal for Zanzibar. | We used it to check current population, CPI, tourism and macro indicators. We also used it to confirm the lack of an official housing-price index. |
| OCGS Monthly Tourism Statistical Release, May 2026 | It gives the latest official tourism arrivals. | We used it to measure current tourism demand in Zanzibar. We connected tourism growth to short-let demand and coastal property prices. |
| Bank of Tanzania selected indicators | It is Tanzania’s central bank source. | We used it for the central bank rate, inflation and macro signals. We used those signals to judge mortgage pressure and affordability. |
| Bank of Tanzania MPC Statement, April 2026 | It directly explains the Q2 2026 rate decision. | We used it to confirm the 5.75% central bank rate for Q2 2026. We also used it to understand the cautious monetary-policy backdrop. |
| World Bank Tanzania Economic Update, February 2026 | It gives independent macroeconomic analysis. | We used it to frame Tanzania’s growth backdrop behind Zanzibar property demand. We also used it to stress-test construction, finance and inflation assumptions. |
| Zanzibar Investment Promotion Authority, real estate opportunity page | ZIPA is Zanzibar’s official investment agency. | We used it to understand how Zanzibar presents real estate opportunities to investors. We also used it to identify tourism and long leases as major demand drivers. |
| ZIPA Fumba Free Economic Zone master plan | It is an official planning document for Fumba. | We used it to assess Fumba’s long-term urban growth potential. We treated Fumba separately because it behaves like a planned new town. |
| Zanzibar Development Plan 2021 to 2026 | It is Zanzibar’s official medium-term plan. | We used it to identify priority sectors like tourism, blue economy and infrastructure. We linked those sectors to residential demand and long-term prices. |
| Vela Zanzibar property price and ROI benchmarks | It gives local private-market pricing evidence. | We used it only for triangulation because official transaction data is limited. We cross-checked its price and yield signals against official tourism and macro data. |
| Knight Frank Africa Horizons 2025/26 | It is a recognized regional real-estate benchmark. | We used it for broader African real estate context. We did not use it as a Zanzibar-specific price index. |
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