Zanzibar’s real-estate sector is primarily fuelled by the strong tourist inflow.
The sector has recently been boosted by changes in residence permits that allow foreign investors to acquire long-term leases and tax-free residency in Zanzibar.
Several residential projects have been developed in Zanzibar, including modern seafront developments.
With initiatives such as 5-year development plan known as the Zanzibar Development Plan and Zanzibar’s overall long-term development plan (Vision2050), whose primary objective is to strengthen Zanzibar’s economy, Zanzibar aims to reduce unemployment by creating a demand for rental apartments.
Zanzibar Real Estate Sector Contribution to GDP

Investing in Real Estate in Zanzibar
The market for real estate is expected to improve significantly, offering a lucrative opportunity for potential investors to invest in the sector.
The government actively seeks private sector engagement in real estate to boost the housing supply in earmarked urban settlements across districts and towns
Investment Opportunities in Real Estate in Zanzibar
- Luxury and low cos Housing estates and apartments
- Commercial buildings
- Shopping malls
- Mixed-use developments
- Development of mini-cities
- Construction of Exhibition and Convention Centre (PPP)
- Construction of ZIPA Business Tower through concession arrangements
Residential Real Estate
Property developers are engaged in several real estate initiatives, such as developing a luxury mixed-use waterfront.
For details on how to buy land and property in Zanzibar, read Ardean Law Chambers’s legal brief on buying real estate in Zanzibar.
Commercial Real Estate
As part of Zanzibar’s Development Vision 2050, the Government of Zanzibar encourages private sector participation in commercial real estate development.
The demand for real estate for industrial and commercial purposes is growing in Zanzibar. The growth is attributed to the growth in private consumption and investment.
Benefits and Incentives to Investors in Real Estate in Zanzibar
In 2021, Zanzibar introduced a set of new incentives for buyers in properties within a strategic real estate investment project worth over USD 100,000.
The benefits are:
- Resident Permit for Real Estate Buyer and his husband/wife/spouse and four children who are under twenty years;
- 50% exemption on stamp duty in Real Estate Buyer’s contract;
- 50% exemption on capital gain on purchased properties;
- 100% foreign ownership is allowed;
- 100% exemption from worldwide income for foreigners; and
- 100% allowance for free repatriation of profit after tax.
Acquiring Real Estate in Zanzibar
Last Updated: 12th March 2023