ZANZIBAR. Zanzibar’s property market is entering a new phase of growth as tourism expansion, infrastructure development and large-scale investment projects strengthen demand for hotels, residential communities, commercial space and tourism-linked real estate.
The momentum was reinforced earlier this month when H.E Hussein Ali Mwinyi, President of Zanzibar, inaugurated the Anaya Hotels & Resorts Zanzibar and Kappa Senses Zanzibar projects in Pwani Mchangani. Together, the two developments represent more than US$52 million in investment and have created 371 jobs, according to the President’s Office.
Speaking during the inauguration, President Mwinyi noted that Zanzibar is now receiving more than 100,000 tourists each month, highlighting the growing demand for hospitality infrastructure and property development across the islands.
Fumba Emerges as a Long-Term Development Hub
For investors, the most significant long-term opportunity may lie in the Fumba Special Economic Zone (SEZ).
According to the Zanzibar Investment Promotion Authority (ZIPA), the 3,000-hectare development zone hosts 62 registered projects at various stages of implementation, representing more than US$3.3 billion in planned investment.
ZIPA’s latest investment profile identifies opportunities in residential and commercial real estate, hotels and resorts, tourism facilities, sports complexes and a convention centre. Located about 24 kilometres from Malindi Port and 10 kilometres from Abeid Amani Karume International Airport, Fumba benefits from existing road connections, electricity and water infrastructure.
The area is also gaining momentum from complementary public investments. Construction of the 36,500-seat AFCON stadium is reportedly approaching completion, with associated infrastructure expected to increase business activity and boost the value of surrounding developments.
A Stronger Focus on Project Delivery
Zanzibar’s investment story is no longer only about attracting investors. Increasingly, it is also about execution.
Earlier this month, Hon. Shariff Ali Shariff, Minister of Labour and Investment, told the Revolutionary Council that 11 of 15 islands earmarked for investment had begun implementing projects, while investment certificates for two islands were revoked after investors failed to meet required obligations.
The move sends a clear signal that authorities are placing greater emphasis on implementation and accountability, alongside investment promotion.
Investor Outlook
The opportunity extends far beyond hotels. Demand is emerging for serviced apartments, mixed-use developments, commercial property, construction services, property management and tourism-support infrastructure, particularly in growth corridors such as Fumba and South Unguja.
For investors, the message is increasingly clear: Zanzibar’s property market is becoming closely linked to the islands’ broader transformation through tourism, infrastructure and urban development. With tourism arrivals rising and billions of dollars already represented in registered projects, the sector is evolving into one of the region’s most closely watched real-estate investment destinations.
