Why InvestInvesting in real estate in Zanzibar is investing in paradise
Why invest in Zanzibar?
Investing in Zanzibar’s real estate is like investing in a slice of paradise. As a semi-autonomous region of Tanzania, Zanzibar is famed for its breathtaking white sandy beaches, awe-inspiring sunsets, picturesque landscapes, and serene forests.
The region’s economic stability and government support for real estate investments, coupled with the high demand for prime properties, make it a highly lucrative and viable investment destination.
- Growing tourism industry
Zanzibar has earned the coveted distinction of being named one of the top travel destinations for 2023 by Travelers Worldwide Magazine, securing its place among the 15 best travel destinations in Africa. The island's allure has grown steadily in recent years, owing to its stunning beaches, captivating history, and distinct culture.
This surge in popularity has resulted in a burgeoning demand for hotels, vacation rentals, and other tourist accommodations, presenting an enticing opportunity for real estate investors seeking to capitalize on this trend. With the tourism industry in Zanzibar flourishing, the real estate market offers tremendous potential for sustainable and profitable investment ventures.
- Stable political environment
Tanzania and Zanzibar boast an exceptionally stable political environment that has remained peaceful since their independence six decades ago. With a multicultural Swahili population renowned for their warm and welcoming hospitality, all visitors and investors are made to feel at home.
To further encourage and safeguard foreign investment into real estate, the government has implemented robust policies, ensuring a secure and favorable environment for international business.
- Potential for capital appreciation
Zanzibar's real estate market has only recently garnered global attention, presenting a unique opportunity for savvy investors seeking to profit from the island's burgeoning economy. With the region poised for continued growth, early adopters who invest in property now stand to reap substantial benefits in the future.
As the economy of Zanzibar continues to expand, demand for real estate is expected to rise exponentially, resulting in significant capital appreciation for astute investors. This makes now the perfect time to invest in the island's real estate market.
- Fumba Town
Fumba Town, the pioneering sustainable and equitable housing development in East Africa, has earned accolades for its innovative approach to creating efficient and accessible homes for the African residential market. Situated a few kilometres south of Zanzibar's international airport and the World Heritage site of Stone Town, Fumba Town has already attracted investment from over 60 nations, with total sales exceeding 1,200 units, making it the fastest-selling development in the region.
New Incentives for property buyers
These new incentives have been brought with the hopes of boosting Zanzibar’s economy and Tanzania as a whole. Buyers with a purchased property within a strategic investment project of over USD100,000 will now enjoy the following benefits:
- 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 foreigner
- 100% allowance for free repatriation of profit after tax