Investment in the real estate business has increasingly gained popularity in Zanzibar, which is widely regarded for its tourism sector, mainly the white sandy beaches and cultural sites. The gap in Zanzibar’s real estate is in its evolution, and unknown to many, the island’s real estate industry is now undergoing a revolution boosted by rising interest from international investors, good tourism prospects, a government that encourages foreign investment, and even regional leaders who embrace the reality of change. Here is information broken down by trends that affect this market and the current state of it.
Increasing Consumer Interest in Sea Views
One of the emerging trends characteristic of Zanzibar’s real estate is the need for beachfront and up-market homes. International and domestic investors are looking at luxury villas, resorts, and oceanfront land. The island’s beautiful seascape enhances the market of properties, giving direct sea frontage. This increasing trend in eco-tourism has called for increased construction of coastal properties. This trend is turning some parts of Zanzibar into increasingly more property markets.
Foreign Investment and Bounties
The Zanzibar government has established policies and incentives from the moment it opened its doors to host foreign investors. Under these policies, foreigners are allowed to own property but are currently permitted to lease for up to 99 years only for renewable terms. This is excellent news for those searching for an investment property to let or a second home. Further, incentives such as tax exemptions for investors have increased demand for commercial and residential property, making Zanzibar an attractive destination in the East African real estate market.
Tourism – Demand for Short-Term Accommodation
An analysis of Zanzibar shows tourism among its most prominent players, especially in the real estate industry. In recent years, the island has received an influx of tourism. Therefore, short-term housing is in high demand, ranging from individual homeowners to full-scale resort accommodations and boutique hotels. Due to the continuing flow of tourists, residents are now buying numerous houses to let the occupants in. This trend is expected to continue, especially now that sustainable/responsible tourism is given much focus/importance in Zanzibar.