By: Daniel Fusch

Zanzibar, the Indian Ocean archipelago once known primarily for its spice trade and pristine beaches, is in the midst of a noticeable transformation. Once somewhat under the radar, the island is now becoming a prominent destination for both luxury tourists and real estate investors. International arrivals increased by over 20% in April 2025 compared to the same month in 2024, and with luxury hospitality brands set to enter the market, there is growing interest in Zanzibar’s beachfront properties.

A rendering of the recently launched Oceanview Villas at Sandbank Villas in Zanzibar

A Surge in Tourism and Luxury Developments

The notable growth in Zanzibar’s tourism sector reflects not only the island’s natural beauty but also its improving infrastructure and hospitality offerings. For instance, Four Seasons has announced plans to develop a luxury 60-villa resort in Zanzibar, while Minor Hotels has signed an agreement to open the Anantara Zanzibar Resort, both of which are expected to debut in 2027. The arrival of these internationally recognized brands highlights Zanzibar’s increasing appeal to both luxury travelers and potential investors. The island was also recently recognized as Africa’s Leading Beach Destination for 2025 at the World Travel Awards, reinforcing its position on the global travel map.

While Zanzibar has long been known as a romantic honeymoon destination, offering stunning beaches and clear waters, foreign ownership of property was historically limited. However, recent legislative changes have created opportunities for non-citizens to purchase property, which could open up the market to a broader range of international investors interested in owning a slice of this idyllic destination.

Sandbank Villas: A Case Study in Demand

One of the standout developments attracting significant investor interest is Sandbank Villas. With the recent launch of its Oceanview Villas, 8 of the 13 units were reserved in advance, suggesting a strong demand for high-quality waterfront properties. Located on a hillside overlooking Zanzibar’s northern coastline, these villas offer sweeping sea views and a sophisticated mix of modern design and coastal charm. Designed by Rob Steul, whose impressive portfolio includes landmark projects like the Four Seasons in London and One&Only Portonovi, the villas reflect Steul’s belief in Zanzibar’s potential. “Zanzibar has all the natural and cultural ingredients to become a top destination for meaningful luxury,” Steul notes.

The Broader Vision: From Safari to Sea

Zanzibar’s appeal is enhanced by its strategic position as a perfect coastal complement to mainland Tanzania’s renowned safari circuits. Visitors can explore the Serengeti and the Ngorongoro Crater, then retreat to Zanzibar’s idyllic beaches and crystal-clear waters. This combination of safari and beach experiences is attracting a fresh wave of tourists seeking well-rounded African holidays, and investors are purchasing luxury villas with plans to benefit from the island’s strong rental market, especially in a destination where property prices remain relatively affordable.

Additionally, Zanzibar has been considering the idea of hosting a Formula One Grand Prix, supported by former Renault and Ferrari driver Giancarlo Fisichella. While the proposal is still under review, such an event would undoubtedly put Zanzibar on the international stage, potentially boosting its tourism and investment profile further.

Zanzibar is at a pivotal moment, blending its rich cultural heritage with modern luxury. For investors, the rise in tourism, changes to property ownership regulations, and the influx of high-profile developments suggest a promising future. As attention on the island grows, those who choose to invest early in Zanzibar’s beachfront real estate market may stand to benefit significantly.