Zanzibar is experiencing a remarkable tourism boom, positioning itself as one of Africa’s most sought-after travel destinations. The island’s pristine beaches, rich cultural heritage, and growing infrastructure have contributed to a surge in visitor numbers, driving a new wave of investment in short-term rental properties.
At Zanzipalms Real Estate, we have witnessed firsthand how this tourism-driven demand has transformed Zanzibar’s real estate market, making Airbnb and holiday rental properties increasingly attractive for investors.
Tourism Growth: A Key Driver for Short-Term Rentals
Zanzibar welcomed over 500,000 international visitors in 2023, and with increasing direct flights from Europe, the Middle East, and Africa, these numbers are set to rise. The government’s strategic investment in infrastructure—such as the expansion of Abeid Amani Karume International Airport—has further cemented the island’s reputation as a premier holiday destination.
Unlike traditional hotel stays, modern travelers, particularly digital nomads and luxury vacationers, seek private, personalized experiences. This shift in preferences has propelled the demand for well-managed, high-end short-term rentals, offering investors substantial returns on investment (ROI).
Why Zanzibar’s Short-Term Rental Market is Thriving
- Higher ROI Compared to Long-Term Rentals
Investors in Zanzibar’s short-term rental market are benefiting from higher nightly rates, particularly in beachfront locations and popular tourist hubs like Nungwi, Paje, Kendwa, and Jambiani. The average daily rate for a well-located Airbnb property can range from $100 to $500 per night, depending on amenities and location, often outperforming traditional long-term rental yields.
- Tourism Seasonality and High Occupancy Rates
Zanzibar enjoys a long peak tourism season from June to March, with particularly high demand during European winter months and the festive season. Well-marketed vacation rentals can achieve occupancy rates between 70% and 90%, ensuring consistent revenue streams for property owners.
- Government Support & Tourism Expansion
The Zanzibar government actively promotes investment in hospitality and real estate, offering tax incentives for developers and foreign investors. Additionally, the rise of eco-tourism and experiential travel has created new opportunities for luxury and sustainable rental properties.
Emerging Investment Hotspots for Short-Term Rentals
While traditional locations like Stone Town and Nungwi remain strongholds for tourism, newer hotspots are emerging as prime investment destinations:
• Paje & Jambiani: Rapidly becoming Zanzibar’s lifestyle and kite-surfing hub, these areas are seeing increased demand for modern apartments and boutique villas catering to digital nomads and long-stay travelers.
• Michamvi & Matemwe: Offering exclusivity and tranquility, these locations attract high-net-worth tourists seeking luxury private villas.
• Fumba & Kizimkazi: With new developments and infrastructure growth, these areas are set to become investment frontiers for both tourism and residential buyers.
Is Now the Right Time to Invest?
Absolutely. The combination of tourism growth, strong rental demand, and a favorable investment climate makes Zanzibar’s short-term rental market one of the most lucrative in East Africa.
At Zanzipalms Real Estate, we specialize in identifying high-yield opportunities in Zanzibar’s short-term rental sector. Whether you’re looking for a beachfront Airbnb villa, a serviced apartment, or a boutique hospitality project, we provide expert guidance to help you maximize returns.
For investors seeking to capitalize on Zanzibar’s tourism boom, the time to act is now.
Interested in investing? Contact Zanzipalms Real Estate today to explore the best short-term rental opportunities in Zanzibar.
