Zanzibar property investment
Invest in Fumba Town now.
10–20 % value growth a year, plus a potential 5–15 % return from holiday or long-term rentals. Fumba Town combines modern living and German build quality with a location among the ten most popular travel destinations in the world.
- 10–20 %
- Value growth per year in recent years
- 5–15 %
- Potential rental yield per year
- Top 10
- of the most popular travel destinations worldwide
- from 100,000 USD
- Golden Visa for up to 6 people
Why now?
10 reasons for your property in Zanzibar.
- 15–20 % annual return from value growth and rental income possible
- Located in one of the ten most popular travel destinations in the world
- Around 15 % more tourists every year mean steady demand for holiday homes
- Two universities right next to Fumba Town already create constant demand for housing for staff and students
- Professional management and value preservation by the Town Operations Company (TOC)
- Urban planning and construction to German standards
- Golden Visa through your property purchase, for up to 6 people, from 100,000 USD (approx. 90,000 €)
- Payment in instalments by construction progress, only once a milestone has been reached
- Standardised, high-quality furniture packages
- Renting and tenant support by TOC or on your own
Returns at a glance
Two rental strategies, plus value growth.
The figures come from our investor factsheet on The SOUL Fumba and The SOUL Paje.
5.72 %
Long-term rental
Average net return per year. Little management effort, popular with digital nomads and expats who stay longer.
12.39 %
Short-term rental
Average net return per year over 10 years. Benefits from tourism and from professional rental management by TOC.
20 %
Value growth
Average value growth per year, based on previous sales prices in Fumba Town.
- +320 %
- Mwangani, 1-bedroom apartment, in 8 years
- +405 %
- Townhouses, in 8 years
- +212 %
- Fumba Horizon villa, in 5 years
Figures based on past experience, not a promise for the future. Actual returns depend on location, property, furnishing and market development.
The location
A tourism market with strong growth.
In August 2025, Zanzibar welcomed 46 % more visitors than in August 2024. Around 26,000 housing units and about 5,000 hotel rooms are needed, and investors from more than 70 countries are already active locally.
What will further boost the location
- New airport terminal for an additional 1.5 million guests a year
- New direct flights from 2026, including Etihad
- Planned direct ferry connection to Fumba
- African Economics School in Fumba Town
- New football stadium in Fumba
Investing in Fumba Town
A town project built to last.
Sustainable construction
Timber construction by Volkshaus for a pleasant indoor climate and a smaller ecological footprint.
A variety of properties
From the student studio to the villa with pool and sea view, for every budget and strategy.
International community
People from more than 70 nations already live in Fumba Town.
Return documents
All the figures to read in detail.
Factsheet, detailed return analysis and our presentation on investing in Africa as PDFs (in German). After signing up, the files are available immediately, and we are happy to get in touch with you personally.
FAQ
Returns, demand and buying process.
What returns are realistic?
Returns come from value growth and rental income. In recent years, average value growth was around 10 % a year, and 20 to 30 % in sought-after locations. Long-term rentals can yield around 5 %, short-term rentals 15 % and more.
For short-term rentals in particular, the furnishing of the apartment matters. That is why we offer high-quality furniture packages, and some properties can be bought fully furnished.
These figures are based on past experience and are not a promise. Actual returns depend on location, property, furnishing and market development.
How is the return on short-term rentals calculated?
An example for illustration: a studio is rented out for 240 nights a year at 150 USD per night and earns 36,000 USD. Of this, around 21,600 USD goes to the owner, 7,200 USD to the management and 7,200 USD to taxes (around 10 % on rental income in Zanzibar) and estimated running costs.
Depending on the property, the operator expects an occupancy of up to 68 % a year and rates of 150 to 175 USD per night. Depending on where you are resident, rental income may also be taxable in your home country. Taxes paid in Zanzibar are usually credited. Our partner Perspektive Ausland can advise you on tax questions.
How high is the demand for property in Zanzibar?
Demand for housing and tourist infrastructure is growing strongly. Around 26,000 housing units and about 5,000 hotel rooms are currently needed. Infrastructure is being expanded, including a new airport terminal for around 1.5 million travellers a year. Investors from more than 70 countries are already investing in the region.
How does the purchase work up to signing the contract?
In a meeting with our investment advisers, we show you all available properties, their locations in the city's master plan and the different floor plans. Once you transfer a reservation fee, the property is blocked for you. After that:
- About 4 days after the reservation fee, you receive your individual contract.
- You have 30 days to return the signed contract.
- 30 days after signing, you transfer the first instalment. You then receive a document from the government authority ZIPA securing your claim to the property, similar to a priority notice of conveyance.
What are the running costs?
The annual fee for all city services is around 1.10 USD per m², so about 50 USD a month for a 50 m² apartment. In premium developments with a private pool, gym or concierge, it is up to 2 USD per m². A backup power supply can be added for 0.09 USD per m². The fees cover infrastructure, security and maintenance, among other things.
See Fumba Town for yourself.
Book an individual tour on site, usually in English, and take 1 to 2 hours for a tour and advice.