AN EMERGING MARKET AT AN EARLY STAGE OF DEVELOPMENT WITH STRONG GROWTH POTENTIAL
ZANZIBAR
The active development of tourism infrastructure, the arrival of international hotel brands, and the limited supply of high-quality projects make Zanzibar one of the most promising investment destinations.
The island’s popularity among tourists continues to grow. In 2025, Zanzibar welcomed more than 1 million tourists, while 2026 trends indicate the potential for tourist arrivals to increase to at least 1.5 million, driven by the resumption of air connections with several major countries.
The growing number of tourists directly increases demand for short-term rentals.
Another important advantage of the market is government regulation.
All development projects are subject to oversight by the Zanzibar Investment Promotion Authority (ZIPA).
Developers must meet strict requirements designed to protect buyers and investors. As a result, entering the market is relatively difficult for new developers, which naturally limits the volume of new supply.
With tourist arrivals continuing to grow steadily and the number of new projects remaining limited, the market creates favourable conditions for higher occupancy rates, rising rental rates, and increased return on investment (ROI).