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 in 2026, you're probably wondering how the real estate market is actually doing right now.
This blog post covers everything from current housing prices in Zanzibar to neighborhood trends, rental demand, and what locals really think about the market.
We constantly update this article with fresh data, so you always get the latest picture of what's happening on the ground.
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
How's the real estate market going in Zanzibar in 2026?
What's the average days-on-market in Zanzibar in 2026?
As of early 2026, the median days-on-market for residential properties in Zanzibar sits around 120 days, which is roughly four months from listing to closing.
However, the realistic range varies significantly depending on what you're looking at: well-priced apartments in popular areas like Fumba or Stone Town typically sell within 60 to 90 days, while luxury beachfront villas in places like Nungwi or Matemwe can take anywhere from 180 to 360 days to find the right buyer.
Compared to 2023 and 2024, the average days-on-market in Zanzibar has stayed relatively stable, though properties with clear leasehold documentation are now moving faster because buyers have become more cautious about paperwork after a few high-profile disputes made the news.
Are properties selling above or below asking in Zanzibar in 2026?
As of early 2026, most residential properties in Zanzibar close at roughly 5% below the initial asking price, though this varies by property type and location.
About 70 to 75% of properties sell at or below asking, while only 25 to 30% achieve the full asking price or slightly above, and we're reasonably confident in this estimate based on our conversations with local agents and our own transaction tracking.
The properties most likely to see competitive bidding are turnkey beachfront villas in high-demand areas like Paje, Nungwi, and Kendwa, especially those with proven short-term rental income and spotless legal documentation, because cash-ready international buyers often compete for these rare listings.
By the way, you will find much more detailed data in our property pack covering the real estate market in Zanzibar.
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.
What kinds of residential properties can I realistically buy in Zanzibar?
What property types dominate in Zanzibar right now?
For foreign buyers looking at Zanzibar in 2026, the market breaks down roughly as follows: apartments and condominiums make up about 40% of available listings, villas account for around 35%, townhouses inside master-planned communities represent 15%, and heritage properties in Stone Town fill the remaining 10%.
Apartments and condominiums represent the largest share of the market in Zanzibar, particularly those inside organized developments like Fumba Town where the leasehold structure is already packaged for foreign buyers.
This property type became so prevalent because Zanzibar's land law means you're essentially buying a registrable long-term land interest rather than true freehold, so developers who "package" the legal paperwork cleanly attract the most international buyers.
If you want to know more, you should read our dedicated analyses:
- 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?
Are new builds widely available in Zanzibar right now?
New-build properties account for roughly 30 to 35% of all residential listings available to foreign buyers in Zanzibar right now, and this share has been growing as developers respond to rising international demand.
As of early 2026, the highest concentration of new-build developments in Zanzibar is found in Fumba (southwest of Stone Town), followed by scattered villa projects in Paje, Jambiani, Michamvi, and Matemwe along the east coast, with a new hybrid high-rise tower under construction near urban Zanzibar City expected to deliver units by 2027.
Get fresh and reliable information about the market in Zanzibar
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Which neighborhoods are improving fastest in Zanzibar in 2026?
Which areas in Zanzibar are gentrifying in 2026?
As of early 2026, the neighborhoods in Zanzibar showing the clearest signs of gentrification are Fumba and the Dimani corridor on the southwest coast, Paje along the southeast, and parts of Jambiani where boutique hotels and upscale guesthouses are replacing older budget accommodations.
In Paje specifically, you'll notice new specialty coffee shops and co-working spaces catering to digital nomads, renovated traditional Swahili houses being converted into design-forward vacation rentals, and an influx of European kitesurf instructors and remote workers who have pushed up long-term rental prices.
Over the past two to three years, properties in these gentrifying areas of Zanzibar have appreciated by an estimated 10 to 15% annually, with prime beachfront plots in Paje and Nungwi outperforming the broader market.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Zanzibar.
Where are infrastructure projects boosting demand in Zanzibar in 2026?
As of early 2026, the top areas in Zanzibar where major infrastructure projects are currently boosting housing demand are the Mwanakwerekwe corridor (near the newly opened flyover), Fumba (benefiting from improved road connections), and Pemba Island (where airport modernization is underway).
The specific projects driving demand include Zanzibar's first-ever flyover at Mwanakwerekwe (inaugurated January 2026), over 100 kilometers of urban road upgrades across Unguja, and the $204 million Pemba Airport modernization that will extend the runway to accommodate international flights.
The Pemba Airport project is expected to complete by 2027, while additional road improvements and the second flyover at Amani are scheduled for completion within the next 12 to 18 months.
Properties near announced infrastructure projects in Zanzibar typically see a 5 to 10% price bump at announcement, with an additional 10 to 15% appreciation once the project is completed and operational, based on patterns we've observed with road and airport upgrades.
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.
What do locals and insiders say the market feels like in Zanzibar?
Do people think homes are overpriced in Zanzibar in 2026?
As of early 2026, the general sentiment among locals and market insiders in Zanzibar is split: most Zanzibari residents feel that coastal properties are unaffordable relative to local incomes, while foreign buyers and investors often see prices as reasonable compared to other Indian Ocean destinations like Mauritius or Seychelles.
When locals argue that homes are overpriced in Zanzibar, they typically point to the gap between average Zanzibari salaries and the $150,000+ price tags on modest coastal properties, while also noting that many listed prices are set with foreign buyer budgets in mind rather than local purchasing power.
Those who believe prices are fair counter that Zanzibar offers beachfront living at a fraction of what you'd pay in Bali, the Maldives, or the Caribbean, and that strong rental yields of 10 to 15% justify the investment.
The price-to-income ratio in Zanzibar is significantly higher than the Tanzanian mainland average, with coastal properties often priced at 15 to 20 times the annual income of a typical Zanzibari household, compared to 8 to 10 times for comparable mainland cities like Dar es Salaam.
What are common buyer mistakes people regret in Zanzibar right now?
The most frequently cited buyer mistake in Zanzibar is treating the purchase like a freehold transaction, when in reality you're acquiring a leasehold or right of occupancy under Zanzibar's land law, which means buyers who skip thorough title chain verification often discover boundary disputes or registration issues after closing.
The second most common regret is overestimating rental income by assuming high-season occupancy rates will persist year-round, when in reality Zanzibar's tourism is seasonal and properties outside the top-tier locations can sit empty for months during the low season from April to June.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Zanzibar.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Zanzibar.
Get the full checklist for your due diligence in Zanzibar
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Zanzibar in 2026?
Do foreigners face extra challenges in Zanzibar right now?
Foreigners face a moderately higher difficulty level when buying property in Zanzibar compared to local buyers, mainly because the process requires navigating leasehold structures, investment approvals, and additional documentation that locals can often bypass.
The main legal requirement is that foreign buyers typically need to route their purchase through an approved investment pathway via the Zanzibar Investment Promotion Authority (ZIPA), and properties are acquired as 33 to 99-year leaseholds rather than outright freehold ownership.
Practical challenges specific to Zanzibar include the fact that many land records are still paper-based and not digitized, local Swahili is essential for understanding some official documents, and the concept of "beach access rights" can be ambiguous even when your title looks clean, so experienced local legal counsel is essential.
We will tell you more in our blog article about foreigner property ownership in Zanzibar.
Do banks lend to foreigners in Zanzibar in 2026?
As of early 2026, mortgage financing for foreign buyers in Zanzibar is technically available but practically uncommon, with most international buyers using cash, offshore financing, or developer payment plans instead of local bank loans.
When local banks do lend to foreigners in Tanzania, typical loan-to-value ratios range from 50 to 70%, and interest rates sit around 15 to 18% annually, which is significantly higher than what most international buyers are accustomed to in their home countries.
Banks typically require foreign applicants to provide proof of income (often demanding 3 years of audited financials or employment records), a local Tanzanian bank account, and sometimes evidence of other assets in Tanzania, which makes the process lengthy and document-intensive.
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.
How risky is buying in Zanzibar compared to other nearby markets?
Is Zanzibar more volatile than nearby places in 2026?
As of early 2026, Zanzibar's property market is more volatile than large mainland Tanzanian cities like Dar es Salaam and Arusha, but roughly comparable to other tourism-dependent island markets in the Indian Ocean region.
Over the past decade, Zanzibar has experienced price swings of 15 to 20% during boom periods (like 2022 to 2025) and brief corrections of 5 to 10% during tourism downturns, whereas Dar es Salaam's residential market has moved more gradually with annual changes typically in the 3 to 7% range.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Zanzibar.
Is Zanzibar resilient during downturns historically?
Zanzibar has shown moderate resilience during past economic downturns, with prime coastal properties in top locations holding value better than secondary areas or speculative projects without clear rental income.
During the COVID-19 pandemic downturn in 2020-2021, Zanzibar property prices in prime areas dipped by an estimated 10 to 15% before recovering fully by late 2022, with the full recovery taking roughly 18 to 24 months as tourism rebounded.
The property types and neighborhoods that held value best during downturns in Zanzibar are turnkey villas with established rental track records in Nungwi, Paje, and Kendwa, as well as heritage properties in Stone Town's UNESCO core that attract a niche buyer pool regardless of broader market conditions.
Get to know the market before you buy a property in Zanzibar
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How strong is rental demand behind the scenes in Zanzibar in 2026?
Is long-term rental demand growing in Zanzibar in 2026?
As of early 2026, long-term rental demand in Zanzibar is growing steadily at an estimated 5 to 8% annually, driven by an expanding expat community, NGO workers, and a small but growing cohort of remote workers who have relocated to the island.
The tenant demographics driving long-term rental demand in Zanzibar include European and American remote workers and digital nomads (especially in Paje), NGO and development organization staff based in Zanzibar City, hospitality industry managers, and a growing number of retirees seeking affordable tropical living.
The neighborhoods with the strongest long-term rental demand in Zanzibar right now are Zanzibar City (Stone Town and surrounding areas) for professionals, Paje for the digital nomad crowd, and Fumba for families seeking a quieter master-planned community environment with reliable utilities.
You might want to check our latest analysis about rental yields in Zanzibar.
Is short-term rental demand growing in Zanzibar in 2026?
Zanzibar currently has relatively light short-term rental regulations compared to many Western destinations, with no strict licensing caps or night limits, though operators are expected to register with local authorities and pay applicable tourism levies.
As of early 2026, short-term rental demand in Zanzibar is growing strongly at an estimated 15 to 20% year-over-year, mirroring the nearly 25% jump in tourist arrivals that brought 917,000 international visitors to the island in 2025.
The current estimated average occupancy rate for short-term rentals in Zanzibar is around 55 to 65% annually, though prime properties in top locations like Nungwi, Paje, and Kendwa can achieve 75 to 90% occupancy during the high season from July to March.
The guest demographics driving short-term rental demand in Zanzibar are predominantly European leisure tourists (especially from Italy, France, Germany, and Poland), safari-goers adding a beach extension to their Tanzania trip, and increasingly, wellness and kitesurf travelers seeking longer stays of 2 to 4 weeks.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Zanzibar.
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 are the realistic short-term and long-term projections for Zanzibar in 2026?
What's the 12-month outlook for demand in Zanzibar in 2026?
As of early 2026, the 12-month demand outlook for residential property in Zanzibar is firmly positive, with buyer interest expected to remain strong throughout the year as tourism continues to break records and infrastructure improvements make the island more accessible.
The key factors most likely to influence Zanzibar property demand over the next 12 months are global travel sentiment and European economic health (since 68% of tourists come from Europe), Tanzanian shilling stability against the US dollar, and the pace of new hotel and resort openings that signal broader investor confidence.
Based on current trends, Zanzibar property prices are forecast to increase by 5 to 8% over the next 12 months in the base case, with prime beachfront locations potentially seeing 8 to 12% appreciation if tourism momentum continues.
By the way, we also have an update regarding price forecasts in Tanzania.
What's the 3 to 5 year outlook for housing in Zanzibar in 2026?
As of early 2026, the 3 to 5 year outlook for housing prices and demand in Zanzibar is constructive, with analysts expecting cumulative price appreciation of 25 to 40% by 2030 in prime locations, assuming tourism continues its upward trajectory and infrastructure investments proceed as planned.
The major development projects expected to shape Zanzibar over the next 3 to 5 years include the Pemba Airport modernization (completion 2027), continued urban road upgrades across Unguja, potential expansion of the Abeid Amani Karume International Airport, and new luxury resort openings from international brands like Anantara.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Zanzibar is a sustained global travel downturn, whether from economic recession, geopolitical disruption, or another pandemic, since the island's property market is fundamentally tied to international tourism flows.
Are demographics or other trends pushing prices up in Zanzibar in 2026?
As of early 2026, demographic and lifestyle trends are having a meaningful impact on Zanzibar housing prices, though the effect is more concentrated in specific micro-markets than spread evenly across the island.
The specific shifts affecting Zanzibar prices include rising tourism arrivals (nearly 25% growth in 2025), an expanding digital nomad population drawn by affordable beachfront living and improving internet infrastructure, and growing interest from Gulf and European high-net-worth buyers seeking second homes in emerging destinations.
Beyond demographics, remote work flexibility is pushing prices in areas like Paje where co-working spaces and reliable wifi exist, while the "Instagram effect" of Zanzibar's photogenic beaches drives awareness among younger travelers who may later become buyers.
These trend-driven price pressures in Zanzibar are expected to continue for at least the next 3 to 5 years, as the island remains relatively undiscovered compared to saturated destinations, though rising prices may eventually push some budget-conscious buyers to seek alternatives.
What scenario would cause a downturn in Zanzibar in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Zanzibar would be a combination of a global travel recession (reducing tourist arrivals by 20% or more) paired with a significant weakening of the Tanzanian shilling that erodes foreign buyer purchasing power.
Early warning signs that such a downturn might be beginning in Zanzibar would include a sustained drop in monthly tourist arrivals below 60,000 (compared to the current 80,000+ average), a noticeable increase in days-on-market beyond 150 days for typical properties, and developers offering aggressive discounts or extended payment plans to move inventory.
Based on historical patterns, a realistic downturn in Zanzibar could see prime property prices decline by 10 to 20% over 12 to 18 months, with secondary locations and speculative projects experiencing steeper drops of 20 to 30%, though recovery has historically been relatively swift once tourism rebounds.
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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 (OCGS) - ZANSIS | It's Zanzibar's official statistics platform run by the government statistics office. | We used it to track tourism arrivals and macro indicators that drive housing demand. We treat it as our baseline and cross-check private sector numbers against it. |
| Zanzibar Land Tenure Act | It's the core land law text published through a Zanzibar government judiciary site. | We used it to explain why leasehold structures dominate foreign purchases. We reference it to ground the legal realities buyers face. |
| Zanzibar Investment Promotion Authority (ZIPA) | ZIPA is the government's official one-stop agency for approved investments in Zanzibar. | We used it to explain how foreigners structure property purchases through investment pathways. We also used it to outline the practical paperwork process. |
| Bank of Tanzania - Mortgage Market Update | It's the central bank's official data on mortgage lending volumes and trends. | We used it to describe how developed the mortgage market is and what it means for financing. We set realistic expectations about bank lending for foreign buyers. |
| C9 Hotelworks - Zanzibar Hotel Market Report | It's a well-known hospitality research group with transparent research products. | We used it to triangulate tourism momentum and hotel pipeline signals that affect rental demand. We use it as a proxy since Zanzibar's housing data is limited. |
| The Citizen Tanzania - Tourism Statistics | It's a leading Tanzanian newspaper that reports official government tourism data. | We used it to confirm 2025 tourism arrival numbers reached 917,000 visitors. We reference it for current visitor demographics and growth rates. |
| Bosch Holdings - Fumba Town Development | It's a professional engineering firm describing delivered infrastructure scope. | We used it to support claims that Fumba has real infrastructure investment behind it. We link infrastructure delivery to where demand concentrates. |
| National Bureau of Statistics (NBS) Tanzania | NBS is Tanzania's official statistics agency for inflation and household price levels. | We used it to triangulate inflation trends with Bank of Tanzania's macro narrative. We keep claims about cost of living evidence-based. |
| Zanzibar Presidential Delivery Bureau (ZPDB) | It's the government body tracking infrastructure project progress in Zanzibar. | We used it to verify infrastructure project timelines and completion dates. We reference it for road and airport development updates. |
| AirDNA - Data Methodology | AirDNA is a widely used short-term rental dataset that publishes how it estimates data. | We used it to justify using STR metrics as a demand signal. We also use it to be transparent about what short-term rental data can prove. |
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