FAQs
Your Questions, Answered
Yes. Under the Condominium Act of 2021, foreign investors can now legally own property in Zanzibar. Previously, ownership was restricted mainly to developers, but the law changed to open property ownership opportunities to international investors through approved real estate developments.
Foreign investors can purchase units within government-approved real estate and condominium projects. These projects are structured under government-approved investment frameworks to ensure legal ownership rights and residency eligibility.
All land in Zanzibar is classified as public land under the Land Tenure Act. However, land can be leased to investors for up to 99 years, providing long-term security comparable to ownership for investment purposes.
Land designated for investment is managed by the Zanzibar Investment Promotion Authority (ZIPA), particularly within investment and Free Economic Zones. ZIPA acts as a one-stop center, simplifying approvals and land acquisition processes.
ZIPA (Zanzibar Investment Promotion Authority) is the government body responsible for facilitating and regulating investments in Zanzibar. It operates as a One-Stop Centre, helping investors obtain licenses, approvals, and land access efficiently while reducing bureaucracy.
An Investment Certificate is issued by ZIPA once an investor commits capital to an approved project. Initially, an Interim Certificate is granted, and once the full investment is completed, an Investment Service License is issued. This certificate allows investors to access incentives and operate legally in Zanzibar.
For foreign investors in the Hotels and Real Estate sector, the minimum capital requirement is USD 2.5 million. Lower thresholds apply to other sectors, as defined by ZIPA under official regulations.
Yes. Zanzibar’s development strategies actively encourage private sector participation in real estate to expand housing supply and urban development. Investors benefit from structured investment support, streamlined processes, and residency eligibility linked to approved property investments.
Yes. Once developed according to an approved investment plan, property on leased land may be sold, assigned, sub-leased, inherited, or mortgaged, subject to regulatory approvals. This provides flexibility and security for investors.
Yes. Zanzibar is seeing a growing number of residential and mixed-use developments designed for international buyers seeking both lifestyle and investment opportunities. These projects support national plans to expand quality housing, strengthen urban development, and attract foreign capital.
Investment land in Zanzibar can be leased for up to 99 years, providing long-term security comparable to ownership and allowing investors to plan confidently for development and returns.
Yes. The 2021 reforms introduced a residency scheme linked to property ownership, allowing foreign investors to apply for residency when investing in approved developments.
Yes. Zanzibar’s development plans emphasize urban housing, commercial real estate, and mixed-use waterfront projects. The government is actively seeking private investment to meet growing demand and modernize infrastructure.
Zanzibar’s real estate market is well positioned for long-term returns, supported by steady economic growth, rising housing demand, and continued expansion in tourism. Government development strategies actively encourage rental housing, strengthening income potential and creating attractive opportunities for property investors.
Yes. Rental income plays a key role in Zanzibar’s return on investment. National development plans focused on employment growth and urban expansion are increasing demand for rental housing. This creates strong potential for stable rental income, particularly in well-located residential and mixed-use developments serving international residents and professional tenants.
Yes. The guide notes that new residential and commercial developments, combined with improving infrastructure such as the international airport and new ferry terminal, are expected to generate high capital appreciation in property values.
Zanzibar’s real estate sector has demonstrated consistent economic growth, recording an average 6% compound annual growth rate between 2017 and 2021. In 2021, the sector contributed approximately 8% of Zanzibar’s GDP, reflecting its growing importance to the island’s economy.
Zanzibar is supported by long-term national development strategies such as Vision 2050, which emphasize economic growth, urban expansion, and private-sector investment. Combined with rising tourism, infrastructure improvements, and an investor-friendly environment, the island is emerging as a well-positioned real estate market with sustainable growth potential.